The Granite Group owner of specialist Motor distributor Granite Underwriting (Granite) has agreed to acquire Carrot Insurance (Carrot) from Trak Global Group (TGG).
The acquisition is the latest development in Granite’s growth journey, which has seen it harness its proprietary data and investment into technology to evolve its business mix over the last two years. Today Granite employs over 1,000 people and writes approximately £350m in gross written premia annually.
Carrot’s entire 55-strong team, including Carrot MD Norrie Erwin, move across to Granite while retaining their location in Crewe.
Granite Group was founded by Alan Keating and Martin Gowing in 1982, and specialises in non-standard motor insurance, including taxi with clients including Uber and other large taxi- operators in the sector, as well as specialist cover for private car, light commercial vehicles and non-standard household.
Carrot is a multi-award-winning young driver telematics insurer that has insured over 130,000 customers over the past nine years. The Crewe-based company pioneered a reward system for good driving and was one of the first telematics insurers to introduce app-based telematics for drivers in the UK.
Commenting on the acquisition, Granite Group CEO Alan Keating said: “We see significant growth in motor telematics post-pandemic, and acquiring Carrot gives us a golden opportunity to cater to increasing demand for motor UBI so that we can deliver new propositions for our customers across all parts of our portfolio. Carrot’s fantastic track record, highly skilled management team and wealth of technical expertise mean it will add real value to our portfolio and for our investors.”
TGG’s global connected data business IMS will also become a strategic partner to Granite, providing hardware, software and professional services to both Carrot and Granite’s wider motor portfolio, helping Granite to become the leading provider in the UK specialist motor segment.
TGG CEO Nick Corrie added: “Since 2012 we’ve developed Carrot into a leading player in the UK young driver telematics insurance market as well as a pioneering brand within the global insurance industry. Post-pandemic interest in connected insurance among insurers and consumers alike creates an unprecedented opportunity for IMS to capitalise on its leading position. We are the only telematics solution provider globally that has operated a direct-to-consumer digital insurance business; those learnings are deep in IMS’ DNA and will remain with us post-sale as we build our market presence in Europe, North America and Asia.”
Norrie Erwin, on behalf of Carrot, said: “This is a win/win for both businesses. The combined expertise built up over many years in the telematics and specialist motor sectors will bring significant value to new and existing customers. Our team is very excited about the opportunities this initiative brings and we look forward to working with our new colleagues. Retaining our relationship with IMS is also a real bonus as a world leading provider of telematics services.”
The transaction is subject to legal completion. KBW provided financial advice to Granite and Carrot were advise by PwC.