RFIB plans bolt-on acquisitions up to GBP 15m
RFIB, a privately owned UK insurance broker, is actively looking to acquire reinsurance or wholesale bolt-on businesses in the GBP 5m–15m range, its CEO said.
The company is 35%-owned by investment firm Fleming Family and Partners (FFP) and 65% by management. The ownership structure and support of FFP provides good potential to expand, Chief Executive Marshall King said.
“We would like to expand through acquisition and organic growth and for the former we would like to do so through either acquiring teams or entire companies in the reinsurance and wholesale divisions,” King said. “We would like to look towards bolt-ons of profitable, niche businesses in the GBP 5m–15m price range while larger transformational deals are not out of the question in several years’ time.”
Geographically, King didn’t rule out any particular region. RFIB is a global business and with offices in London, Dubai, Hamilton, Kiev, Moscow, Perth and Tokyo as well as minority investments in insurance entities internationally.
Funding for any acquisition would be generated through a combination of its own balance sheet and its shareholder. “FFP is very willing to assist in funding for an acquisition, but we also have a strong balance sheet also,” King said.
Operating revenue for the 12 months up to June 2008 increased by 12% to GBP 34m while profit before tax for the same period increased by 44% to GBP 4.4m.
Earlier this year RFIB sold its UK retail intermediary, Bridle Insurance Brokers Limited, to CFN Insurance Services Limited (CFN) for an undisclosed sum. King said there would be no further sales as it was now preparing to expand over the next 12 – 24 months.
King took over as CEO in September after Patrick Holcroft stepped down from the position.