SSP today announced a fresh vision, new growth targets & a revised operating structure following the completion of its acquisition by H&F Sensor Bidco Limited.
Following an approach by private equity investors Hellman & Friedman LLC (H&F) earlier this year, SSP confirmed on 23 July that it had agreed to be acquired by H&F Sensor Bidco Limited, a company formed & ultimately owned by funds managed or advised by H&F & SSP’s existing management team. The business will still trade as SSP.
The approach valued the business at a good premium to the average share price & in light of weaknesses in equity markets through most of 2008, SSP’s Board agreed that the acquisition would provide the greatest potential for the future development of the business. This decision received majority shareholder approval on 1st September with 98% acceptance. The deal will provide SSP with access to additional funds for future acquisitions & to increase its investment in the talent, technology & service capabilities its customers will need in the rapidly changing global insurance marketplace.
By leveraging its presence across all segments of the market, SSP will reposition itself firmly at the centre of insurance distribution, linking up the industry through its knowledge, talent & technology to increase efficiency & reduce costs, enabling businesses to derive full value from technology & their trading relationships.
Jonathan Davey’s recent appointment further underlines SSP’s commitment to becoming a market enabler for lower cost insurance distribution.
Since its formation six & a half years ago, SSP has more than doubled in size every three years & now plans to repeat this growth again by the end of 2011. In July, SSP announced record results with an annual turnover of £64.4 million & has now set a revised turnover target of £130 million to be achieved through organic growth & acquisitions over the next three years.
These growth plans are very good news for both SSP staff – as they will continue to share in the success of the business – & SSP customers, who will benefit significantly from further investment in value-added services & IT development.
SSP will place significant emphasis on strategic alliances with global insurers & market consolidators. Using its knowledge, talent & technology, SSP has the right mix of services & capabilities as well as global scale to offer real value to the general insurance industry through technology.
By operating through three market-facing divisions - Broker, Insurer & International - SSP ensures the right focus, customer service & expertise across the global markets it operates in.
David Rasche, SSP’s Executive Chairman, commented: “We continue to be an ambitious company, with a strong track record & a clear vision for the next phase of our growth. The new financial structure will allow us to further invest in the future, in order to bring additional benefits to our customers & meet our next growth challenge. As we continue to grow we will maintain the customer focus of the company, as this has been key to our success.”
Laurence Walker, SSP’s Chief Executive, said: “Over the last few years the distribution of insurance has moved from a simple insurer-broker model to a complex market where a range of different models co-exist, involving many different businesses – underwriting agents, networks, managing general agents, wholesalers, affinities etc. In this rapidly changing new world, industry–wide knowledge & experience in the latest insurance trading techniques will be more important than the technology itself. That’s where SSP has the advantage. We can apply our knowledge, talent & technology to help solve industry challenges & create opportunities for our customers across the globe. Our capabilities – everything from hosting to business intelligence, ebusiness & distribution – enhance the value & business advantages derived from IT.”
24/09/2008
