AllClear Insurance Services, which posted a record breaking year in 2017 in terms of turnover and number of policies sold, is being acquired by private equity firm Synova Capital.
A report by The Sunday Times said former insurance brokers Mike Rutherford and Chris Wacey, who founded the specialist travel insurer, own a majority of the shares and are looking at sealing a £30 million takeover deal. They will remain as non-executive directors following the buyout.
Catering to elderly customers with pre-existing medical conditions, the Essex-based travel insurance company last year made a pre-tax profit of £286,000 amid a turnover increase to £12.9 million. AllClear operates in the UK, Ireland, and Australia – with Synova potentially considering further overseas expansion, according to the report.
The buyer, which has £400 million of funds under management, typically invests between £10 million and £30 million in high-growth companies. A strong competitive position, positive earnings, and stable cash flows are among the things it looks at when partnering with or snapping up firms.
Meanwhile 69-year-old Rutherford and Wacey are expected to retain a small shareholding in AllClear.