Sovereign Capital supports the buy-out of Claims Management Group (CMGL)

Sovereign Capital Partners LLP ('Sovereign Capital'), the independent lower mid-market UK private equity provider, today announces that together with the management of Claims Management Group Limited ('CMGL'), has acquired 100% of the share capital in CMGL from Zurich Financial Services ('Zurich') for an undisclosed sum.

CMGL is a leading provider of outsourced claims and insurance management services that are offered to FTSE quoted companies, general insurers, Lloyd's underwriters and London Market companies. With an international network of 12 offices and over 550 personnel, CMGL manages approximately 165,000 claims representing US$4.7 billion in gross liabilities and over $1.1 billion reinsurance recoverables. In addition CMGL currently administers eight Lloyd's syndicates representing in excess of £0.9 billion of open year capacity.

The total funding comprises equity to finance the buy-out plus a further commitment to fund the group's expansion by organic growth and acquisition. Debt has been provided by Royal Bank of Scotland.

Sovereign and the CMGL management expect the group to expand its services to customers around the world. CMGL will be reviewing acquisition opportunities, including other insurance services operations, in each of its markets.

The CMGL management team is led by Jerry McArthur, Managing Director together with Tim Cox, Finance and Operations Director.

Philip Conboy, Director, Sovereign Capital, commented:

"We have been extremely keen to invest in this sector for some time and CMGL presented the best value opportunity. CMGL has been consistently profitable and has shown significant growth over recent years. It has a well-established and committed management team that is passionate about the future of the company. Independence will ensure stability and security for both clients and staff, as well as the potential to make acquisitions."

Jerry McArthur said:

"Sovereign Capital has invested in CMGL because they believe we are the best service provider in our markets and we have been able to demonstrate a consistent track record of growth and success. We intend to accelerate the growth of our business in many operational and geographic areas and we are delighted to be supported by a private equity investor that is committed to our long-term development."

Philip Conboy joins the CMGL board.