A-Plan is a leading UK-based distributor of motor and household insurance policies to SMEs and individuals. It also specialises in a number of high-net worth and commercial niches, and in providing policies for foreign speaking customers.
The company currently operates 73 high-street branches nationwide, and serves over 580,000 policyholders.
The HgCapital Services team identified the insurance broking sub-sector as attractive for potential investment in 2011, as it is characterised by businesses with high levels of recurring revenues, providing a non-discretionary purchase for customers, with high cash flows and opportunities for bolt-on M&A. A-Plan was identified as part of this market mapping exercise, and had been tracked by the team for three years prior to our investment in the business. The company has a high-touch, service-oriented approach leading to best-in-class levels of customer satisfaction driving high retention rates and low customer acquisition costs due to a high referral rate.