Key summary
- The brokerage market within insurance sector is highly fragmented, offering ample scope for consolidation
- Inflexion is well versed in insurance buy-and-build in the sector, having successfully scaled two platforms previously
- Inflexion has recently launched a new hub-and-spoke brokerage platform with the aim of building a group of between four and six regional broking powerhouse hubs across the country
Consolidation has reshaped the landscape – but becoming part of a mid-market group needn’t mean sacrificing freedom for scale.
The insurance sector has long been a fertile ground for consolidation, and that trend shows no sign of slowing. Scale, efficiency, and diversification are driving this, and private equity is particularly well placed to back ambitious brokers and underwriting groups given their capital and expertise.
At the beginning of this year, Inflexion announced the launch of a new insurance broking platform, AIH. Inflexion has experience in building two other highly successful insurance groups: in 2017 it acquired and merged Bollington Insurance Brokers and F Wilsons Insurance Brokers to create the largest independent broker in the north of England. Inflexion subsequently acquired insurance broker David Roberts & Partners in 2021, completing 13 acquisitions in three years.
Ascend Broking Group was the first of several acquisitions of insurance brokers Inflexion plans to make through this new hub-and-spoke platform, with the aim of building a group of between four and six regional broking powerhouse hubs across the country.
“The drumbeat of consolidation in insurance broking isn't just continuing, it's intensifying,” points out Andrea Bertolini, Partner and Head of Financial Services at Inflexion. “We're seeing larger players, backed by patient capital, looking to achieve even greater economies of scale and geographic reach. The strategic rationale for M&A remains incredibly strong, particularly for those who can genuinely integrate and extract value from acquired books of business.”
The market opportunity in insurance broking remains vast: it was projected to reach a market size of $319.1 billion in 2025 (gross written premium) in the United Kingdom, making it the world’s third-largest behind the US and China. And despite decades of consolidation, there are still around 1,500 independent brokers generating under £15 million in revenue (excluding micro-firms).
This is because broking is inherently regenerative: it’s entrepreneurial, relatively easy to start up, and its sales-and-distribution model enables new entrants to emerge continually. Consolidated brokers often give rise to new independents as junior talent breaks away to build again. This is because over the years many have come to appreciate the rich opportunity afforded as a handful of large corporates have been consolidating for decades and created a faster path to absorption once brokers reach scale. For some nearing retirement, this provides an exit route. But for others, the appeal of a PE partner lies in building something new – a challenger platform with ambition and eventually scale.
Building bigger and better with PE
Many entrepreneurs are cautious about selling outright and crystallising all their value on day one. A more creative approach can align incentives and share in the upside.
“Broking is a simple business; it’s not about heavy operational change but about driving commercial rigour and alleviating the operational strain experienced by independent brokers,” notes Dominic Clark, Investment Director at Inflexion. “Working with private equity can help entrepreneurs de-risk while maximising their long-term returns.”
Ascend aims to allow group firms to balance brand and culture retention with the benefits of scale. A “skinny centre” is focussed on central governance of systems, data, pricing and compliance – areas where smaller firms can struggle – while leaving local teams empowered to serve their clients.
By supporting leadership teams with structured frameworks and incentives, PE firms can help ensure that synergies are realised while client service remains uninterrupted. The result: freedom within a framework, preserving entrepreneurial spirit while building a platform for sustainable growth.
“M&A isn't just about combining balance sheets; it's about blending processes, and most importantly, people and cultures. The critical points are always clear communication from day one, setting realistic expectations, and investing heavily in retaining key talent and preserving client relationships. Without a well-defined integration roadmap that prioritises these human elements alongside the financial, even the most promising acquisitions can fall short of their potential," Dominic says.
With Ascend serving as the strong cornerstone, Dominic stresses that no business is too small. “Ascend will partner with ambitious entrepreneurs, provide capital to de-risk growth, and share richly in the rewards of building something special.”
The data dividend
Alongside consolidation, the next frontier of value creation is data. While insurance is inherently a data-rich industry, the sector has been slow to embrace the full potential of advanced analytics and artificial intelligence. "Many brokers are sitting on goldmines of client data, yet they're not fully leveraging it for predictive analytics, personalised offerings, or streamlined operations,” Dominic points out. “The opportunity to transform how we assess risk, engage with clients, and drive efficiencies through technology is monumental."
Private equity can help drive this change. By providing capital and experience they can support creation of modern IT systems, encouraging digital transformation, and sharing best practice from other industries. This can boost data and thus client loyalty by promoting personalised underwriting, automated claims, and enhanced profitability.
Inflexion has helped a number of businesses in the insurance sector to grow:
DR&P – Inflexion assisted with 13 acquisitions in three years to support 10x EBITDA growth
Bollington Wilson – became the largest independent broker in the North of England during Inflexion’s investment
Acorn Group – the leading integrated insurer of non-standard motor insurance in the UK is achieving significant growth through data science investment and select acquisitions
UK-wide corporate insurance broker DR&P Group Limited built a network of strategically aligned businesses in the regional insurance broking market with Inflexion’s support.
DR&P sells (and distributes via specialist MGAs) a wide range of non-discretionary commercial insurance products across a diverse range of end-markets. DR&P traces its roots to 1977, with the Inflexion partnership a time of tremendous growth that included 13 acquisitions in three years.
In 2024 Inflexion agreed the sale of DR&P to BMS Group, an independent specialist insurance and reinsurance broker. At the time of exit, DR&P had a team of almost 400 people in 25 offices across the UK and Europe, handling in excess of £620 million of gross written premiums for their clients. In addition to its impressive M&A run, DR&P’s success was underpinned by a 95% client retention rate and significant investment in its technology infrastructure, with Inflexion’s investment helping it pivot from UK-only to having an active client list spanning and 46 countries. The 13 acquisitions alongside industry-leading organic growth of 23% generated a 10x increase in EBITDA and 4x growth in headcount.
In 2017, Inflexion backed the buyout and simultaneous merger of Bollington Insurance Brokers and F Wilsons Insurance Brokers to create Bollington Wilson Group. Five additional acquisitions helped to deliver EBITDA growth of 133% and in 2021, the company was sold to one of the UK's leading independent insurance brokers, US-listed Arthur J. Gallagher.
The partnership commenced with Inflexion supporting the brokerage businesses to integrate successfully, with the newly created group focused on UK expansion. With a diversified platform in place, attention turned to adding scale and seeking out add-on acquisitions. The businesses continue to trade under their independent brands, building on their heritage and strong reputations.
The Group grew organically and via strategic acquisition during the Inflexion investment, including four purchases in 2020 alone, and became the largest independent broker in the North of England. Its success was about more than just scale; it was about focusing on clients: Inflexion helped to digitally enhance the business and embed customer service excellence.
At the time of the exit, Bollington Wilson was operating across seven offices and employing more than 400 people.
Inflexion has been working with Acorn Group (formerly Granite Underwriting) since 2018. The Founders were seeking an experienced minority investment partner with significant experience in scaling businesses.
Since investment, the specialist motor insurance business has achieved significant market share growth, both organically through investment in technology, data science, people, supplemented by targeted M&A.
Today, Acorn is one of the UK’s leading specialist motor integrated insurers, with over 500,000 live policy holders, a GWP of over £742 million and employing over 1,400 people.
The business encompasses a portfolio of brands focused on specialist motor insurance, holding a market-leading position in UK taxi cover alongside tailored products for non-standard private cars and light commercial vehicles. Acorn Group’s key strength lies in its entrepreneurial-led strategy and management team, data-led business model and its integrated control of the entire value chain – spanning underwriting, distribution, claims management, premium finance, investment management, and vehicle hire.
To help Acorn make the most of the data it has, Inflexion supported the creation of a data science team in 2023. In parallel to sustained growth within current products, the business has also launched a number of new products leveraging its core data and technology capabilities – including ‘Street Cover’, an insurance product for UK delivery drivers and ‘Briefly’, short-term temporary insurance, both launched in 2025.
Ambitious businesses can grow faster with the right capital and expertise, with Inflexion’s flexible funding offering minority or majority capital and access to a sizable team to accelerate growth. The Inflexion team has significant experience in supporting the growth of a number of insurance companies, and all have access to Inflexion’s value acceleration strategies of digital enhancement, international expansion, M&A, commercial effectiveness, sustainability and talent management.
