Policy Expert (‘the Company’), the award-winning home and motor insurance provider, has secured new backing from international private equity firm Cinven to support its expansion plans and broader growth strategy.

Cinven’s Strategic Financials Fund has agreed to acquire a 50% interest in Policy Expert from its current owner, a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA). The financial details of the transaction have not been disclosed.

Policy Expert has been one of the UK’s fastest growing insurance businesses since it was founded in 2011. The Company operates as a Managing General Agent (MGA), allowing it to provide insurance solutions with a capital-light business model. From its office network across London, Milton Keynes, Tonbridge and Motherwell, the Company currently serves more than 1.5 million customers in the UK across home and motor insurance segments and plans to launch into pet insurance this year.

Cinven believes that Policy Expert represents a highly attractive investment opportunity due to its:

  • Established position in a large and growing market: Policy Expert has built a strong position in the UK insurance market, benefitting from increasing consumer demand for competitively priced insurance products and personalised service;
  • Attractive business model: as an MGA, Policy Expert combines the economic models of traditional insurers with the flexibility and scalability of a capital light and tech led business model;
  • Track-record of growth and profitability: Policy Expert has demonstrated consistent organic growth since it was founded in 2011, driven by its ability to innovate and adapt its insurance products to evolving market demands; and
  • Strong management team: Policy Expert’s experienced leadership team has been instrumental to driving the Company’s growth through continued innovation.

Steve Hardy, Executive Chair of Policy Expert commented:

“We are a forward-looking business that loves to get things done and we are hugely excited to have two supportive shareholders in Cinven and ADIA with us for the next stage of our journey. Every new policy sale or renewal adds to our belief that customers are seeking clear, consistent and dependable products and support from the general insurance market. Our smart use of data and people-focused culture has already made this a reality for our 1.5 million customers.” 

Luigi Sbrozzi, Partner and Head of the Strategic Financials Fund at Cinven said:

“We are delighted to invest alongside ADIA to support Policy Expert in its next stage of growth. Policy Expert is one of the fastest growing home insurance providers in the UK, with a unique approach to product design and claims management and a strong reputation for customer satisfaction. We have been highly impressed by the Company’s achievements to date with the business expanding significantly over the past few years. Cinven has extensive experience investing in the insurance sector and we look forward to leveraging this knowledge to support the management team to deliver continued growth across its product base.”

Hamad Shahwan Aldhaheri, Executive Director of the Private Equities Department at ADIA, said:

“We are confident that Cinven’s track record of supporting innovative businesses will be of significant benefit to Policy Expert and we are pleased to welcome them as fellow shareholders in the company. Policy Expert is already one of the UK’s leading insurance providers and it has strong prospects for further growth.”

The transaction is subject to regulatory approvals and other customary closing conditions.