‘Acquisition-hungry’ Principal Insurance buys Bristol’s Europa Group to become one of UK’s biggest motorbike insurers

Growing group says deal ‘will invigorate a market that is in need of invigoration’

A motorbike specialist insurer that calls itself ‘acquisition hungry’ has snapped up a Bristol broker in a move it says will make it one of the top five intermediaries in the motorcycle market. Manchester-based Principal Insurance has acquired broker Europa Group, best known for its MotorCycle Direct brand.

The deal, financed with shareholder funds, will also see Principal acquire Europa Underwriting, which trades under the Ridersure wholesale brand. It means Principal will serve more than 120,000 policyholders and generate over £60m in annual gross written premium.

Principal Insurance’s managing director, Dave Bowcock, said: “This acquisition not only makes impeccable commercial sense to Principal, but provides Europa with the opportunity to unlock shareholder value while joining a group with the scale and investment capacity to support its next phase of growth.

“Europa has a fantastic retail pedigree upon which, through investment and our product and technological expertise, we will further build.

“Our strengthened market presence will also enable us to deliver further value to UK motorcyclists, reaching deeper into the niches within what is a highly specialist sector. It’s safe to say too, that this is a development which will invigorate a market that is in need of invigoration.

“We are also very excited at the opportunities presented to develop our wholesale operations through Ridersure’s broker network, again adding value to our offer.”

He said Principal would keep Europa’s Bristol office, with the group’s 77-strong workforce “largely unaffected”.

Europa Group’s managing director, Richard Waring, said: “Having built the business through investment in technology and innovation, we decided the time was right to realise its value and pass it on into safe and trusted hands.

“As a tech-savvy and ambitious specialist broker, Principal is a perfect fit for Europa’s brands. No one better understands the market and how to secure sustainable growth through satisfaction of niche demands and service delivery.”

This is the latest in a series of deals for Prinmcipal, which last November bought the renewal book of former Lancashire business Peart Performance Marque Limited. Group MD Mr Bowcock said the group would consider more acquisitions of brokers or books across its key personal and commercial lines including motorcycles, motorhome and courier insurance.

He added: “We’re acquisition hungry and have the funds to fuel that appetite. If you’re looking to exit markets in which we’re active, talk to us.”

For the Europa deal. Principal’s lead advisors were Matt Noon at Hill Dickinson and Catriona Lang at Dow Schofield Watts. Adrian Young at Hurst Accountants handled tax due diligence.

Europa’s lead advisors were Amy Moriarty at Burges Salmon and Tim Smith at Shaw Gibbs.