Hiscox has reached a $55 million agreement with Whittington Group to acquire its direct-to-consumer online operation DirectAsia.
DirectAsia was founded in Singapore in 2010 and launched in Hong Kong in 2012 and Thailand in 2013. Its primary business is motor, one of the few non-discretionary insurances in Asia, with ancillary lines in travel, personal accident, healthcare and life. During 2013, DirectAsia had gross written premiums of $25.3 million.
Bronek Masojada, the CEO of Hiscox, commented: "DirectAsia is a challenger brand with real potential. It gives Hiscox a 21st century distribution platform in Asia that leapfrogs traditional routes to market. DirectAsia complements our direct-to-consumer businesses in Europe and the US, and in time, we will use it to distribute Hiscox products."
CEO Whittington Group, Anthony Hobrow, said: "We have developed a successful entrepreneurial business, taking on the global giants with traditional distribution models. We are very pleased that we have been able to pass this unique platform to Hiscox who can supply expertise, capital and a strong customer focussed culture to help us further develop and grow the business."
The business will continue to operate under the DirectAsia brand and with the existing local management team, which will be led by Steve Langan—Hiscox UK and Europe MD and now CEO of DirectAsia Group.
Hiscox, headquartered in Bermuda, is an international specialist insurance group listed on the main market of the London Stock Exchange. DirectAsia will be Hiscox's first business in Asia, and builds on its other direct-to-consumer operations in Europe and the US.
The acquisition has been approved by the Monetary Authority of Singapore and is subject to regulatory approval from the Office of the Commissioner of Insurance (OCI) in Hong Kong.
