Our client was a UK-based provider of home insurance to customers with both simple and complex ‘non-standard’ risks. Such categories include homeowners with larger houses, businesses operating from home, listed buildings, unoccupied properties, properties with flat or thatched roofs and homeowners with convictions.
The founder and major shareholder of the company was considering selling a significant stake in the business, and allowing the management team to effect an MBO. We were engaged by the vendor to provide commercial due diligence to support the sale process, the management team and ultimately the potential investors in the business.
Our work included a broad primary research programme which included customer interviews and an online market survey of over 500 home insurance consumers. This, combined with detailed interviews with insurance market participants (competitors, aggregators, underwriters) and extensive secondary research, enabled us to:
- Identify trends in the underwriter, broker and aggregator landscape.
- Evaluate our client’s key strengths and differentiators from alternative providers in the market and advise upon their defensibility.
- Build a model to analyse and present demand dynamics.
- Assess in detail the achievability of the business plan.
Our client’s management team successfully executed an MBO with backing from a leading private equity firm. Post-investment, our advice is helping the business to continue its strong growth.