Marlborough Stirling acquires majority stake in insurance start-up
15 May 2003 | 3620 views | 0
Marlborough Stirling has taken a 74% stake in Otter Risk Solutions, a new company established to provide third party underwriting and claims risk management services to insurers, re-insurers and intermediaries in the life and protection markets.
Otter adds increased processing expertise to Marlborough Stirling's life and pensions outsourcing activities. The new company also fits neatly alongside Marlborough Stirling's developing distribution business, including Exweb, by helping adapt traditional underwriting processes for use in e-commerce.
Marlborough Stirling says it will invest £0.5 million in Otter in the form of new share capital and inter-company loans, and retain an option to buy-out minority shareholders Graham Spittles and John Dearing - Otter's MD and operations director respectively - in five year's time.
Otter will be operating initially from Marlborough Stirling's offices in Cheltenham and Basingstoke.
David Power, executive director life & pensions, comments: "Otter complements Marlborough Stirling's existing outsourcing and distribution propositions in a sector of the market where sales continue to grow. These new services can help companies reduce costs in line with the business models that regulatory pressure is demanding, whilst providing quality underwriting and claims services tailored to specific needs."