“Disruptive thinking” fuels HGGC’s latest tech investments in insurance sector
HGGC made two add-on acquisitions to Davies Group Ltd. First, Davies acquired claims desk services provider Total Loss Settlement Ltd. In addition, the company purchased Randall & Quilter's Insurance Services and Captive Management operations. HGGC invested in Davies in 2017. The private equity firm, led by CEO Rich Lawson, is among the PE firms championing the insurance industry as the sector that could greatly improve from technology upgrades.
Davies Group is a London-based provider of outsourced insurance services, including: bespoke claims management, loss adjusting, investigation, and fulfillment services. The two recent purchases mark Davies' fifth and sixth add-ons since HGGC's investment. Other deals include: Ambant, CMSL, Cynergie and Service Tick.
"We have not only driven organic and M&A growth, but we have continued our digital transformation, commercializing our use of drones, video, and robotics; and the successful launch of our ‘Disruptive thinking’ innovation lab, placing the power of new ideas in the hands of our people," says Davies CEO Dan Saulter.
“Davies’ expanded offering of resources and service capabilities allows the company to deliver end to end solutions, making them a more valuable business partner for their diverse customer base," adds Lawson.
HGGC has been buying up insurance tech companies. In 2017, the firm bought AIMC LLC, a distributor of medical supplement products, to merge with its insurance portfolio company Integrity Marketing Group LLC. HGGC backed Integrity in July 2016.
HGGC is a middle market private equity firm based in Palo Alto, California with more than $4.25 billion in capital commitments. The private equity firm was founded in 2007 as Huntsman Gay Global Capital. The firm is led by Lawson, Greg Benson and managing director Steve Young, who played quarterback for the San Francisco 49ers. HGGC has remains active across the middle market, buying medical supplements distributor AIMC LLC, purchasing event management software company Etouches, swallowing up vitamin distributor Nutraceutical International Corp., acquiring online marketing research company Instantly Inc, and buying database management provider Idera.