INSURANCE GROUP RSA has acquired Benchmark Underwriting Ltd, proving that some merger and acquisition activity is getting across the line in spite of the recession.
The deal was inked in recent days and we understand that it placed a value on Benchmark of about €6 million, making millionaires of its joint owners and founders, Martin Kennedy and Brendan Keenan.
As its name suggests, Benchmark is an underwriting agency offering both commercial and personal lines of insurance. Set up five years ago, it is based in the International Financial Services Centre and its 2007 gross written premium was about €10 million.
I’m told that the company, which employs 12 staff and deals with about 300 intermediaries, will continue to operate under the Benchmark brand.
Kennedy and Keenan, who are joint managing directors, will remain with Benchmark.
When contacted, RSA – previously known as Royal Sun Alliance – said the deal was “consistent with its profitable growth strategy” for the Irish market.
“We have a strong business in Ireland and this deal reflects our intent to achieve further profitable growth,” said RSA Irish chief executive Philip Smith.
This is RSA’s third acquisition in the past two years; it took over Europa General Insurance in 2007 and Sertus Underwriting last year.
The Irish business also relocated to a new headquarters beside the Dundrum Town Centre, while its parent injected €100 million in additional capital this year as part of a move to “domesticate” the business here.
RSA set up in Ireland in 1971 and employs 500 people here. It underwrites all primary classes of non-life insurance and its gross premium income for 2007 was €375 million. It is the largest property insurer here and one of the biggest providers of bespoke motor insurance schemes.
