Acorn Owners Considering £1 Billion Sale of UK Cab Insurance Firm

The owners of British specialist motor and home insurer Acorn Group are exploring strategic options, including the potential sale of a controlling stake in the company, according to sources familiar with the situation.

The London black cab insurer’s shareholders, which include Inflexion Private Equity, are collaborating with advisers at Continuum Partners to assess interest from potential buyers. This preparation is in anticipation of a possible sale process, as indicated by sources who requested anonymity to discuss sensitive information. The shareholders may seek a valuation of £1 billion ($1.4 billion) or more for Acorn, according to these insiders.

In addition to a sale, an initial public offering (IPO) could also be on the table if a sale does not materialize, some sources mentioned. Ongoing deliberations mean that Acorn’s shareholders could ultimately decide against pursuing a deal. Representatives for Acorn and Inflexion have declined to comment, while a representative for Continuum did not immediately respond to requests for comment.

Acorn is well-known for insuring UK taxi drivers, including many of London’s iconic black cabs. The company also provides coverage for vans and young drivers, as well as home insurance tailored for unique situations, such as properties at risk of flooding.

The current efforts to sell come amid a surge in mergers and acquisitions (M&A) activity involving UK insurers. Recently, Zurich Insurance Group AG agreed to an £8 billion takeover of UK cyber insurer Beazley Plc. Last year, Belgium’s Ageas SA acquired UK personal lines insurer Esure for £1.3 billion from Bain Capital.

Inflexion acquired a minority stake in Acorn in 2019, as noted in a statement at the time.

Topics
Carriers

Was this article valuable?

Here are more articles you may enjoy.