Another New Deal for Direct Group
24/09/2007 09:00:00 by Marketing
Managing General Agent Direct Group has been appointed to supply all insurance products and administration services to South coast based mortgage & secured loan broker, The Mortgage Lender.
Chris Wood, Director of Sales & Marketing at Direct Group said “We are delighted to partner The Mortgage Lender. Their innovative approach complimented by our single, multi product/insurer web based administration model, will provide the ideal platform for driving growth, whilst delivering quality customer service in a demanding marketplace.”
The relationship will initially mean the provision of Creditor and Term Life insurances, with the addition of further value added products like buildings and contents to enhance The Mortgage Lender’s offer to their customers in the near future.
David Titmuss, Managing Director of The Mortgage Lender said, “To me success is about partnership – working with a company who can help us sell insurance well and compliantly and one who looks for new opportunities. Direct Group is that company and I am delighted to be working with them.”
Derek Coles, Direct Groups’ Chief Executive Officer commented “To be appointed by the team at The Mortgage Lender further strengthens our position in this space and is right on strategy for Direct Group as a solutions provider of insurance services to the mortgage and secured loan broker market.”
Direct Group Appointed Claims Administrator for New Product
20/09/2007 08:40:52 by Marketing
Direct Group announces that it has been appointed as Claims Administrator for a new Payment Protection Insurance product recently launched by a major financial institution. This new product offers the customer the flexibility and choice of mixing and matching cover to reach a level of protection that meets their needs.
Direct Group will provide a specialist claims administration service on behalf of the client which provides the customer with a high quality service in the unfortunate event of a claim.
Derek Coles, Chief Executive Officer, commented “As a Managing General Agent, Direct Group have the flexibility of providing clients with a ‘one-stop’ solution for all services or alternatively, as in this case, providing only a certain range of services to meet their needs. This allows the client to concentrate and focus on developing other areas of their business”.
LDC Backs Management of Direct Group in £40m Deal
06/08/2007 09:00:00 by Marketing
Derek Coles and Scott Hough have led the management team of Direct Group, a provider of business process outsourcing services to the insurance sector, in acquiring the business in a £40 million deal with the backing of mid-market private equity firm LDC and a debt package from Barclays.
Based at sites in Doncaster and Halifax, Direct Group provides a range of value-added services to insurers and corporate partners, including policy administration and fulfilment, commission management, premium collection, claims handling and performance reporting.
The business works across multiple insurance product sectors of property, motor, life and casualty, focussing predominantly on property and protection insurance schemes.
In recent years, Direct Group has successfully evolved from a niche third party administrator to a broader capability of a ‘managing general agent’, working as an intermediary for both insurers as well as corporate and affinity product distributors, who use Direct Group to provide innovative insurance products and services and source underwriting capacity.
The business has a very flexible technology platform and provides added-value services, including product design and development. This enables providers – such as lenders and underwriters - to work with Direct Group to develop tailored products for its distributor partners and use its technology to deliver new products and services to the marketplace quickly and effectively.
LDC has invested £21.3million for a significant minority shareholding, with the balance of equity held by first and second tier management teams. Debt funding was provided by Barclays Leveraged Finance team in Manchester.
The business has been acquired from a number of exiting shareholders, including two of the original founders, and Barclays Private Equity, which backed a management buyout in 2002.
As part of the deal, Ray Stenton, Investment Director at LDC, will join the board as non-executive director.
He said: “There are a number of strengths to Direct Group. We’ve been hugely impressed by its operational efficiency, which is driven by a highly automated IT infrastructure enabling the business to provide an unparalleled quality of service to its clients. It has also successfully evolved into an added-value partner providing a wide range of services across a diverse range of product areas, enjoying excellent relationships with insurers and distributors. Add to that an excellent management team led by Derek Coles and Scott Hough, we believe the business is well placed to capitalise fully on a dynamic marketplace that is seeing rising demand for partners like Direct Group.”
Derek Coles, who becomes Chief Executive of Direct Group, said: “This is a transformational deal for everyone at Direct Group. LDC is the ideal partner to help us deliver our future growth plans for the business. Very early on, Ray and his team demonstrated the same passion that has propelled us onwards over the last few years. We enjoy a high level of credibility in the insurance market – securing the backing of an investor like LDC can only enhance that.”
The deal was originated and led by Andy Westbrook and Claire Frangou at Deloitte.
Andy Westbrook said “This deal should provide the launch pad for a period of rapid growth for Direct Group and enables its highly incentivised and talented management team to capitalise on the core strengths of the business and benefit from the strong support of LDC. We wish the team every success for the future.”
Other advisers included Neal Shepherd of DLA (LDC), Peter Halpin of Eversheds (Vendors), Deloitte (Tax, Commercial Due Diligence and Debt Advisory), KPMG (Financial Due Diligence) and Ernst & Young (Exit review).
For more information please contact marketing@directgroup.co.uk
Race for Life - Sunday, June 24 2007
11/07/2007 09:00:00 by Marketing
13 Direct Group ladies braved the inclement weather South Yorkshire has recently been experiencing for one common goal – to raise money and awareness for Cancer Research UK by taking part in this year’s Race for Life.
The staff from Direct Group’s Doncaster office all completed the 5k Town Fields course and as a result raised a total of £1525.00 in sponsorship money for this worthy cause.
Well done ladies!
Five Year Contract for Outsourced Solution
14/06/2007 09:00:00 by Marketing
Direct Group is delighted to announce that its recently formed Property Claims & Administration Service has been selected for a five year contract as the sole provider of a completely outsourced schemes solution to Royal & SunAlliance.
The scheme will deliver a completely web enabled solution to incorporate premium collection, policy administration and claims handling for a number of Royal and SunAlliance schemes including tenants’ and students’ contents and right to buy.
Derek Coles, Managing Director, Direct Group, said “Direct Group is delighted to have been selected by Royal & SunAlliance following a rigorous and competitive tender process that sought to identify a partner that met Royal & SunAlliance’s requirements for innovation and high standards of service delivery and performance.”
Derek added “Direct Group Property Services has delivered rapid growth since its launch and the move into property complements our unique position in the partnerships marketplace. Our expertise as an MGA gives us an enviable legacy of investment in our core operating systems and supporting infrastructure. As a result, we are able to deliver, at speed, a wide range of tailored insurance solutions to our partners through a wide range of insurance relationships.”
If you would like further information please contact marketing@directgroup.co.uk
