Central announces acquisition of Edinburgh broker Castle Cairn 10/12/11

Central Insurance has announced its second acquisition of 2011 after completing the takeover of Edinburgh-based Castle Cairn Insurance Brokers in a deal worth £2.3 million.

The acquisition boosts Central’s premium placement into the UK insurance market to more than £60 million, and means the firm is now ranked among the top 10 independent brokers in the UK as compiled by Insurance Age.

The takeover provides Aberdeen-based Central, which employs 125 staff, with a strong position to grow and expand its reach in the central belt following the opening of its Glasgow office in 2010.

Castle Cairn, which was founded in 1978, has a gross written premium of £5.5 million and specialises in commercial insurances and high net worth insurance for private clients. A particular specialism is in management liability advice and cover to the commercial sector, particularly in oil and gas and fund management. The acquisition, financed by a combination of cash and bank debt, is part of Central’s ambitious growth plans and gives the firm a strong footprint in the Central belt.

Iain Henry, managing director of Central Insurance, said the deal was an important step in increasing its presence in the financial lines and private client sector whilst also securing a strong base in the Edinburgh market.

He said: “Castle Cairn has built a very strong business in the private client and specialist financial lines market, and we think it’s a great fit for us as we look to grow into this sector and extend our reach in the central belt in our other key sectors. There is a first-class team already in place in Edinburgh, and we see this as a strong compliment to the skills and expertise we already have in the business.

“This deal increases our strength across the country and we’re looking forward to growing with the existing team at Castle Cairn under the Central Insurance brand.”

Alan Grant of Castle Cairn, said: “Central has achieved great success and is clearly ambitious with a strong management team absolutely focused on being the best in the business. Castle Cairn and Central share many of the same characteristics and values so we are looking forward to contributing to the future growth of Central as it becomes an increasingly important independent player in the UK.

“This is excellent news not only for the team at Castle Cairn but also for our clients, who will be able to access an even greater range of expert advice and services.”

Central, which was founded in Aberdeen in 1973, has a long heritage in the energy sector, with the company also targeting growth in others sectors since opening a new £1.2 million office in Glasgow in January 2010. The acquisition of Castle Cairn follows the £2.6 million acquisition of Aberdeen firm Collins Halden & Burnett in May 2011. Central is also growing its presence in sectors including construction, tourism, charities, care services, commercial property and life sciences.