In acquiring MD Group, and its managing general agent MD Insurance Services Ltd, HSB is taking over the LABC Warranty brand and Premier Guarantee.
LABC Warranty and Premier Guarantee provide structural warranty cover for residential and commercial construction projects.
HSB, a Munich Re company, is a specialist engineering and technology insurance, engineering inspection and consultancy services provider.
HSB said that the acquisition of MD Group supported its UK growth ambitions by adding a complementary insurance specialist to its growing business.
HSB UK managing director Stephen Worrall said: “I’m really excited with the opportunity for us to work with the MD Group. This acquisition will not only expand our core insurance offerings into the structural warranty arena but also enhance our distribution capabilities within the UK construction industry.”
HSB has had a relationship with the MD Group since 2012, providing specialist machinery inherent defects insurance to its customers. In 2020, HSB extended its relationship further by becoming their primary insurance capacity provider.
Jacki Goodman, managing director of LABC Warranty: “We see the investment of HSB as the next step in the development of LABC Warranty. HSB’s secure A++ (Superior) A.M. Best Company rating, combined with their technical expertise will undoubtedly benefit our customers and help us support them into the future.”
Gary Devaney, founder, chief executive and chairman of the MD Group, said: “Over the past 25 years we have grown from covering single homes, to working with the largest house builders and residential projects in the UK. The support of HSB and the Munich Re group will allow us to continue this success story and better support our customers.”
MD Insurance Services had a difficult pandemic. In 2020 is made a loss of £5.1m before tax on turnover down more than 40% at £41.3m.
Following the acquisition, which remains subject to regulatory approval, Premier Guarantee will continue to operate from Birkenhead.