ATC Insurance Solutions, Australia’s largest independent managing general agent (MGA) and Lloyd’s coverholder, has acquired 100% of Sterling Insurance in a deal valued at A$33.2m (US$21.57m).
Sterling, a UK-based general liability underwriter specialising in construction, was previously part-owned by B.P. Marsh & Partners—a London-listed venture capital investor which had acquired an approximately 20% stake in Sterling for £1.9m (US$2.57m) in 2013.
B.P. Marsh has also been a long-term investor in ATC, holding a 25% stake in the business prior to this most recent transaction.
The latest transaction, completed through a combination of cash and equity, saw B.P. Marsh exchange its stake in Sterling for additional equity in ATC. The ATC shares received by B.P. Marsh are valued at approximately A$6.5m and increased its overall holding in ATC to 27%.
Chris Anderson, ATC’s Chairman and Managing Director, said the business was “thrilled” to welcome to Sterling Insurance to the ATC group, adding, “Sterling is highly respected within its sector, with a strong focus on niche, hard-to-place, and complex risks.”
Following the completion of the transaction, Dan Topping resigned from his role as a nominee director on the board of Sterling but remains on the board of ATC.
