Davies Group

Sector: Insurance Services

Davies Group is a leading provider of outsourced insurance claims and risk services to the insurance industry

United Kingdom

Business Overview

  • Founded in 1968, Davies is a leading provider of outsourced insurance claims and risk services to the insurance industry. Operating across the UK, Ireland, Bermuda and North America, the company serves over 400 insurance and highly regulated clients across three key areas:
    • Claims solutions - The company’s core business is managing the end-to-end claims process for insurance companies. This division represents c.70% of total revenues
    • Insurance services - Comprised of three divisions: (i) Insurer & market services, providing back office functions for insurance companies; (ii) Intermediary services, providing consultancy services to insurance brokers; and (iii) Captive management solutions;
    • Customer solutions - Comprised of three divisions: (i) Digital customer management; (ii) Customer experience & engagement; and (iii) Risk and regulatory services, which helps highly regulated institutions address a number of functions, for example complaints management
  • Davies is widely recognised for delivering a broad and innovative suite of solutions to its clients. As a result, the company has established longstanding relationships with a number of blue-chip customers and in 2018 achieved more than 100 client wins from both new and existing customers

Investment Thesis

  • Longstanding and established blue chip customer base of over 400 companies
  • Strong financial visibility supported by annual net revenue retention of 90% and low churn rate across the customer base
  • Non-cyclical industry with limited correlation to macroeconomic cycles
  • Diversified suite of services provided across multiple divisions and industries, including property, casualty, motor and niche segments
  • Strategic growth opportunities through selective acquisitions and continued organic growth
  • Experienced and highly regarded sponsor and management team