Acquisitive private medical insurance (PMI) intermediary Chase Templeton has announced the completion of three new deals including the purchase of its first PMI book from a financial adviser.
Chase Templeton purchased the SME-weighted PMI book of restricted whole-of-market adviser Ludlow Wealth Management Group. The Southport financial planning firm has chosen to exit the PMI market as it is a non-core activity.
Jeff Tate, mergers and acquisitions director at Chase Templeton said: "The purchase of Ludlow's PMI book also marks a significant milestone as financial planners and IFA PMI books are very much on our shopping list.
"For most IFAs PMI is increasingly unprofitable, an unwelcome diversion from their core profit centres and we expect the sector to provide further acquisition opportunities."
The company has also finalised the purchases of Private Medical Insurance Advisors Ltd. of Andover, Hampshire, and JVA Healthcare Services Ltd of Pinner, west London.
Both companies served business and individual PMI markets but with strong biases towards the SME sector.
The acquisitions bring in a further £2m in annual premium income (API) to the Lancashire-based intermediary.
Sid Ludlow, chief executive of Ludlow Wealth Management, said divestment of his company's PMI business was client driven.
He said:"PMI is becoming an increasingly specialist marketplace and one requiring greater resource and expertise which falls outside of our core business. It was in the best interests of our clients that we sell our book to Chase Templeton as this will ensure they have access to more of what the market has to offer with the added benefit of significant specialist expertise."
These new acquisitions bring the total number of deals completed in 2014 to 26, including Chartered Life, Health Assured (Scotland) Medisearch Direct, Simply Health and SJS Healthcare.
Since securing backing from Manchester's Palatine Private Equity in February 2013 the company has completed 38 deals which boosted API by around £34m.
The new acquisitions bring Chase Templeton's annual premium income to well over £100m, with its turnover now well in excess of £13m.
To manage integration of acquired businesses the company has increased its staff numbers to nearly 70 and has plans to recruit further next year.
The firm also recently announced a sponsorship deal with its local club Blackburn Rovers.
