GUARDIAN GENERAL Limited ("GGL"), a member of the Guardian Holdings Group, and the shareholders of the Zenith Group of companies ("Zenith") have signed a Memorandum of Understanding (MoU) under which GGL intends to purchase the entire share capital of the Zenith Group with the exception of Zenith's Lloyd's businesses, which are currently in run-off.
It is anticipated that the purchase, which is subject to regulatory approvals and a detailed due diligence process, will be concluded within the next three months, a statement issued by Guardian Holdings said.
The origins of Zenith date back to 1937 with the establishment of a syndicate underwriting motor insurance in the UK under the Lloyd's umbrella.
The Zenith Group is known principally for its broker distributed motor insurance products and its flexible approach to risk assessment has enabled it to develop a number of specialist motor products.
Zenith prides itself on providing its distribution network, which consists of over 3000 brokers, with a range of products that suit the varied needs of their customers.
The Zenith Group's current insurance provider, Zenith Insurance plc, was established in 2002 and is based in Gibraltar.
INTEGRATION
Upon completion of the proposed transaction, the Zenith Group will be integrated into GGL's Gibraltar-based operations.
As both Zenith and Link have created highly successful brands in the UK personal lines market, it is anticipated that they will continue trading as separate brands. It is also expected that current agency arrangements with each insurer's broker partners will remain unchanged.
FIRST STEP
GGL's acquisition of Link last year was the first step in the development of a broad-based general insurance business in the UK and Europe," said Andy Haynes, Chief Executive of Link Insurance. "We have now grown the Link brand to the point where we can start phase two in the development of a wider European operation. The proposed acquisition will make a significant contribution to the achievement of this strategy."
