Liverpool Victoria Friendly Society has acquired ABC Insurance Solutions, the start-up general insurance business led by John O'Roarke, the former chief operating officer of Royal Bank of Scotland Insurance.
ABC will become part of Liverpool Victoria's general insurance business, Liverpool Victoria Insurance Company (LVIC).
The move will see LVIC develop into a multi-line, multi-distribution general insurance business, with the aim of becoming a top five general insurer in its chosen markets within five years.
Up to £150m will be invested in growing the business over the next few years, Liverpool Victoria said.
The new, enlarged general insurance business business will adopt a multi-brand strategy, using the Liverpool Victoria and Frizzell brands initially, as well as launching new brands for different market segments.
The current Liverpool Victoria product range will be rejuvenated to offer wider choice to customers. In addition, new products will be introduced and LVIC will operate across a broader range of distribution channels. This will see LVIC offering products through the broker channel for the first time, aimed at both personal and SME clients.
LVIC distribution capability will be enhanced by the creation of a white label offering to new and existing major corporate partnerships.
The business will operate on a split-site basis, operating call centres in Liverpool Victoria's Bournemouth head office and in Croydon.
LVIC said it intends to hire up to 500 new employees to support the new broker and SME business and to facilitate the growth of the existing business.
Subject to regulatory approvals, John O'Roarke will head that business and become a member of Liverpool Victoria's Executive Committee, reporting to Group Chief Executive Mike Rogers.
Mike Rogers, group chief executive of Liverpool Victoria, said: “We are delighted to have acquired such a talented team, with exciting plans that complement so well our existing strengths. General insurance is a key component of our growth strategy and we now have the team to deliver on our ambitions.
“This move will strengthen the Liverpool Victoria Group and deliver long term value to our members. We will be able to offer our customers and affinity partners better products, more competitive pricing, and improved customer service.”
John O'Roarke said: “We're very excited about joining forces with Liverpool Victoria. It has one of the most trusted brands in the market and a great reputation for service and value, yet still has huge undeveloped potential.
“Customers are becoming increasingly sceptical of a City-oriented corporate world and there is a genuine opportunity for a mutual insurer to win customers' hearts and minds with a truly competitive offering.
"This is a move that will be welcomed by many as it will offer greater choice and better value to customers, brokers and trade partners.”
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