ADIA Offloads 50% Stake in UK Insurtech Policy Expert

The UK-based international private equity firm Cinven Strategic Financials Fund has announced that it will acquire a 50% interest in insurtech Policy Expert, which is owned by a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA).

The transaction is subject to regulatory approvals and other customary closing conditions. However, the financial details of the transaction have not been disclosed.

With this, Policy Expert, the award-winning home and motor insurance provider and the UK’s fastest growing insurance businesses since it was founded in 2011, secured new backing to support its expansion plans and broader growth strategy.

ADIA’s subsidiary Platinum IVY acquired Policy Expert from Primary Group, a Bermudan based investment holding company, becoming a majority shareholder (75%) in November 2023. By offloading 50%, the ADIA’s stake is now reduced to 25%.

Policy Expert 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 and also 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

With an attractive business model, Policy Expert as an MGA, combines the economic models of traditional insurers with the flexibility and scalability of a capital light and tech led business model. It has even demonstrated consistent organic growth, driven by its ability to innovate and adapt its insurance products to evolving market demands, and the company’s experienced leadership team has been instrumental to driving its growth through continued innovation.

Policy Expert’s Executive Chair Steve Hardy said that they are a forward-looking business that loves to get things done and excited to have two supportive shareholders in Cinven and ADIA for the next stage of their journey.

He added: “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 & Head of the Strategic Financials Fund at Cinven said that they were 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 Policy Expert’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,” he added.

Hamad Shahwan Aldhaheri, Executive Director of the Private Equities Department at ADIA, said that they were confident that Cinven’s track record of supporting innovative businesses will be of significant benefit to Policy Expert and ADIA was pleased to welcome them as fellow shareholders in the company.