In November last year, it was announced the management team of Royal London 360°, led by chief executive David Kneeshaw and backed by private equity firm Vitruvian Partners, had successfully executed a management buy-out of the company and its subsidiaries. The new company is called RL360°.
Following completion of the deal, AKG issued a note which described the new outfit as “a financially strong standalone operation with very strong operational characteristics and positive development potential”.
Specifically, AKG said, “notable in the change in RL360°’s ownership”, is the retention of senior management, led by Kneeshaw, who have “significant experience and time within the operation”. RL360° added the final “buy-in of the senior management is an important element of the new ownership persona”.
In its note, AKG said: “Operationally the change is positive with the existing infrastructure and organisation maintained together with the close alignment of ownership to business objective and culture.
“The financing composition of the deal is interesting given the investment of all the senior management and the retained consideration of RLG and is innovative in terms of the arrangement made with “Munich Re to provide new business support via a quota share arrangement.
“Financial strength remains good and the presence of the quota share agreement with Munich Re supports liquidity and should mitigate any question over the ability of RL360° to support new business at or even excess of plan.”
