Speciality insurance company Markel has acquired a 49% stake in Certa, a UK-based tax managing general agent (MGA).
Markel did not disclose the quantum of the investment.
Certa will use the proceeds to accelerate product development and expand its geographical footprint.
With the deal, Markel hopes to gain further access to long-term growth opportunities in a speciality line of business.
Ed Beckwith, Tom Cartwright, Rachel Hine and Adam Singer established Certa in 2019 as a tax underwriting MGA.
Markel was one of the original capacity providers of Certa, which has its headquarters in the UK, and offices in Spain and Germany.
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As part of the plan, Markel said that it will work with Certa’s management team to support the MGA’s business plan.
Additionally, the deal will enhance Markel’s warranty and indemnity portfolio, which provides purchasers residing in the UK and European Economic Area with M&A insurance coverage for SME transactions.
Markel International divisional managing director of professional and financial risk and cyber David Sawyer said: “Markel has provided the capacity to Certa from day one, and in a short period of time Certa has become a market leader in its specialist sector.
“We believe the business has plenty of headroom for growth in the coming years as the tax sector continues to mature. We look forward to continuing to work with Certa’s excellent team of tax experts as we play a key role in accelerating growth across the MGA’s operations in 2024 and beyond.”
Beckwith added: “We are extremely excited to have secured a 49% investment from an organisation with Markel’s speciality lines pedigree.
“Markel’s extensive global footprint, coupled with its high-level underwriting and operational expertise, will hugely aid our potential in developing more tax insurance solutions and other products, as well as providing crucial capacity support for our next expansion phase.”
Last month, Markel announced a partnership with insurtech company Cytora to increase productivity in its underwriting operations.