Zurich UK has announced plans to acquire Oak Underwriting plc from RSA Insurance for an undisclosed consideration.
The agreement is expected to transform Zurich’s scale in the high net-worth sector, providing its existing high net-worth proposition, Zurich Private Clients, with a broader distribution platform and enhanced regional presence.
Zurich claims that the acquisition is in line with its growth strategy for high-performance markets, and maintains that the deal will allow it to better serve customers and distributors.
Following the transaction, Oak will retain its current office in Chipping Norton, but will eventually become part of Zurich Private Clients. Both businesses will be led by Paul Glasper, Zurich’s Head of Specialist Retail.
David White, Head of Retail at Zurich UK, said: “Today’s announcement accelerates the growth of our high net-worth business, giving us significant scale in the market and transforming us into one of the largest providers.
“This deal broadens our distribution capabilities and enhances our regional footprint. We are confident the combined strengths of our businesses will create a market leading high net-worth proposition, focussing on high levels of service and depth of broker relationships.”
Additionally, Mark Coffey, Managing Director, Private Clients at Oak Underwriting, said: “Zurich has an ambition to become the leading high net-worth player in the UK market so I am pleased we are joining their organisation to achieve this.
“We have some great people and fantastic capability so combining the best of Oak and the best of Zurich Private Clients will create something which is really exciting.”
80 Oak employees are expected to transfer to Zurich as part of the agreement, and the transaction is likely to close in the second quarter of 2018, subject to legal and regulatory approval.