Insurer leads pack of four bidders for high net worth specialist
Groupama is thought to be leading a pack of four bidders in the race to buy Lark Group.
A number of senior insurance figures said Groupama was competing against three major brokers to buy the broker.
Other bidders are thought to be Broker Network and US broker Hilb Rogal & Hobbs (HRH), which acquired Glencairn, an independent Lloyd’s broker, in January 2007.
Lark chairman Graham Lark dismissed suggestions that the broker was for sale.
But one bidder said that Lark, which has a premium income of £75m, could fetch between £40m and £50m.
The bidder said Groupama had tabled an offer of around £40m, while others had so far bid upwards of £30m.
A successful acquisition of Lark would be in line with Groupama’s recent admission that it will continue to investigate “interesting” business opportunities following the acquisitions of Bollington and Carole Nash.
But it would extend Groupama’s acquisitions beyond niche brokers.
Groupama acquired motorcycle specialist Carole Nash in December 2006 before buying 60% of commercial broker The Bollington Group last month. Bollington has expertise in motor trade and the care sector.
Lark would provide US broker HRH with a regional distribution base and extend its presence in the UK market.
Lark added: “The directors continue to be committed to the business.
“Our strategy will continue to be: grow the business in London and the South East with both corporate and personal clients. It is very much, business as usual.”
Lark bought Lloyd’s broker, Somerville Insurance Services last year.
Groupama and HRH declined to comment. Broker Network was unavailable to comment.
If Groupama’s bid succeeds, Lark would become the latest broker to be snapped up by insurance companies. AXA acquired Stuart Alexander, Layton Blackham and Smart and Cook this year.
Lark specialises in commercial and personal insurance with expertise in higher value homes, high net worth individuals and their commercial interests.
