Clear Group makes largest acquisition to date with Lloyd’s broker purchase

Clear Group has entered the wholesale Lloyd’s broker space with the acquisition of Lilley Plummer Risks – its largest purchase to date.

Lilley Plummer Risks is a marine and property specialist Lloyd’s broker and has a team of 38 staff, led by chief executive Stuart Lilley and managing director Dan Plummer.

The deal will add £150m of gross written premium (GWP) to Clear Group’s wholesale proposition.

Clear Group also said the deal “adds to the existing key pillars that the group has developed as part of its longer-term growth strategy”.

Mike Edgeley, Clear Group chief executive, added: “This deal is transformational for us because it reinforces our long-term strategy, set out some time ago, to broaden our specialist capabilities, strengthen our wholesale business and bolster our Lloyd’s presence.

“We knew straight away that this was no ordinary broker, that its skillset perfectly complimented our strategy.

“I am absolutely delighted to be welcoming Lilley, Plummer and all the Lilley Plummer team to Clear.”

Sale of equity stake 

As a result of the deal, investor BP Marsh has sold its 28.4% shareholding in the Lloyd’s broker.

BP Marsh invested in Lilley Plummer Risks in October 2019. It will receive £21.65m in cash following the disposal of its equity stake.

BP Marsh’s chief investment officer Dan Topping said: “The group’s founding investment in Lilley Plummer Risks, and its eventual sale, is testament to our approach in seeking partnerships with skilled management teams to create and ultimately realise value for our shareholders.”

In a joint statement, Lilley and Plummer said: “It has been a privilege to have been a part of the BP Marsh portfolio over the last five years.

“As valued partners, [they] have been instrumental in helping the business grow to a level that leads us into an exciting new chapter with the Clear Group and Goldman Sachs.

“We would like to sincerely thank everyone at BP Marsh for all their expert guidance and friendship since forming Lilley Plummer Risks back in October 2019 and wish them all the very best for the future.”