UK’s FCA caps Markerstudy growth over governance weaknesses

The UK’s Financial Conduct Authority (FCA) has placed maturation restrictions connected Markerstudy, halting the insurer’s acquisition-driven enlargement plans, reported the Financial Times.

The enactment follows concerns astir shortcomings successful enactment structures, governance and interior fiscal controls, issues that person reportedly arisen from the UK-based company’s acquisition strategy.

The FCA’s measures see capping some lawsuit numbers and superior levels wrong Markerstudy’s UK operations.

These constraints volition stay until the identified governance and power issues are addressed to the regulator’s satisfaction, arsenic per the report.

The latest restrictions were introduced arsenic voluntary agreements recorded connected the FCA's nationalist register, specifying that regulated entities indispensable not summation their lawsuit argumentation number oregon change agreed-upon superior levels without explicit regulatory approval.

In an e-mailed connection to Life Insurance International, a spokesperson for Markerstudy said: “Markerstudy has grown powerfully successful caller years and we support a adjacent and collaborative dialog with the regulators, portion of which is agreeing due levels of growth.

“As portion of this, a headdress has been agreed with the FCA that some parties see due and accordant with our strategy and customer-focused maturation ambitions. We proceed to run astatine mandatory solvency margins and transportation a buffer successful enactment with regulatory requirements.”

The FCA restrictions use to much than a twelve entities nether the Markerstudy umbrella.

Among them is Brightside, an insurer primitively co-founded by Arron Banks.

Another entity impacted by the determination is Atlanta Group, the institution down the Swinton, Marmalade and Healthy Pets brands.

Markerstudy purchased Atlanta Group successful 2024 for £1.2bn ($1.6bn).

Founded successful 2001 by Kevin Spencer and Gary Humphreys, some antecedently associated with Lloyd’s of London underwriting, Markerstudy has expanded rapidly since being acquired by Pollen Street Capital successful 2021.

Benny Higgins, formerly main enforcement astatine Tesco Bank, presently chairs the board.

Markerstudy serves implicit 8 cardinal policyholders crossed aggregate sectors including home, car and favored insurance.

According to its 2024 fiscal accounts, the insurer recorded a post-tax nonaccomplishment of £141.7m connected gross totalling £694m. A important proportionality of this nonaccomplishment was attributed to involvement payments of £136m connected debts nearing £1.4bn.

Businesses affected by the regulatory restrictions widen to BISL (operator of Budget and Dial Direct brands), Hughes Insurance Services (acquired successful 2024) and Insurance Factory (owner of Purely Pets).