With Sovereign’s support, CMGL was developed into a disciplined, standalone business with an enlarged and experienced management team focussed on the future. The business rapidly developed its market focus and new business pipeline to become a leader in the provision of outsourced claims and insurance management services.
Sovereign’s specialist financial services focus enabled the firm to identify CMGL and its clear growth potential from a number of businesses that were researched in its niche. Established in 1993, CMGL had a strong reputation for quality, an international office network and managed over 165,000 claims as well as eight Lloyds syndicates.
In 2005, Sovereign backed the existing management team led by Managing Director Jerry MacArthur, in a buy-out from Zurich Financial Services. The business was attractive because of its long-term predictable revenues, strong cash generation and underlying growth trends.
In partnership with Sovereign, CMGL was able to invest significantly in the growth of the business both through improving efficiencies and building a pipeline of new business. On the back of the successful implementation of the plan and positive financial performance, the business was sold in March 2007 in a £32m transaction to Capita. Capita provided a natural fit for the company with clear potential to enhance CMGL’s offering going forward.
CMGL reinforced its position as a market-leader through a combination of market focus and Sovereign’s expertise.
Jerry MacArthur / MD / CMGL