Bennetts, one of the UK’s leading motorcycle insurer brokers, has been bought from BGL by Saga plc.
The wrinkly specialist paid £26.3m in cash, on the basis that Bennetts fits well with Saga’s corporate accent on an older demographic.
According to Saga, the Bennetts customer base of more than 200,000 bikers is apparently made up of 77 per cent in the over-40 bracket and 43 per cent who have ridden past 50 years of age.
Bennetts reported revenue of £17m and gross written premiums of £31m in its past financial year to 30 June 2014. Together with the 20,000-odd motorcyclists Saga already covers through its own-brand and Direct Choice insurance operations, this new acquisition means that the group — which also offers everything from grannie-friendly package holidays to twilight-zone healthcare — will have around a fifth of the entire UK powered two-wheeler insurance market.
Commenting on the deal, Saga chief executive Lance Batchelor said: “This fits with our strategic ambition to drive growth through our insurance broking operations. Bennetts sits perfectly within our business model — a capital-light, cash-generative business that will seamlessly integrate with our database to quickly deliver tangible returns. Our model works best where we can differentiate our service, leverage superior customer knowledge to tailor the best product for customers and create cross-selling opportunities.”
Bennetts says staff will move with the brand, which will “retain its own separate identity”.
Vince Chaney, Bennetts MD, said: “The team at Saga is keen to learn from the Bennetts team’s expertise in growing a digital business and engaging customers through assets like Bike Social, while using the team’s retail experience with online motorcycle store Bike Nation.
“Bennetts will benefit from access to Saga’s wider database of customers by joining Saga’s growing stable of insurance brands, which already includes Saga and Direct Choice.
“We can assure customers there will be no change to our award-winning services as we make the transition to new owners, and we look forward to developing our existing products for all riders.”