January 2007

Zurich Takes Control of Endsleigh Insurance From NUS
Zurich is set to ramp up its personal lines business after acquiring the remaining stakes in Endsleigh. The insurer had previously owned 45% of the broker, with Endsleigh management owning a 40% share and the National Union of Students (NUS) taking the remaining 15% shareholding.

Senior broking sources said Endsleigh management had been seeking to realise their investment in the broker for some time and, after looking at the possibility of a management buy-out had decide to sell to Zurich.

The move will give Zurich access to Endsleigh's 124 retail outlets, with 59 of those located on student campuses around the UK. Endsleigh, a top 20 independent broker, reported a commission income of £60m in 2005. The insurer will now set to work on broadening Endsleigh's product range by integrating its personal lines products with the broker's current offering.

The deal is set to put Zurich in competition with Swinton, Budget and the AA, although Zurich will not be withdrawing from any broker panels. The chief executive of Zurich UK, said: "The acquisition of Endsleigh supports Zurich's multi distribution strategy and we are exited about the opportunities for profitable growth that this deal brings".

Endsleigh will continue to operate as an independent subsidiary of Zurich with members of the NUS retaining positions on the broker's management board.

Source: Insurance Times