Insurance intermediary Nexus Group has agreed to acquire the trade credit business of Howden UK Group through its broking arm, Xenia.

The transaction, which will close on March 31, will see Xenia integrate UK-based Howden’s specialist trade credit broking business based in Birmingham, Glasgow, Manchester and Cardiff into its regulated entity, Credit Risk Solutions, which was the first trade credit broker acquired by Nexus in 2017.

Launched in March 2019 as part of Nexus’ plans to segregate its broking activities from its underwriting operations, Xenia recently raised £16mn to finance merger and acquisition activity in order to build what it says will be the leading independent broker in the trade credit market.

Last year, it bought trade risk specialist Credit & Business Finance (CBF) for an undisclosed amount, bringing its share of the gross written premium for the UK trade credit broking market to 11%. A Nexus spokesperson tells GTR that this latest acquisition adds a further £10mn in gross written premiums to its business, bringing the total to around £55mn, or roughly 15-18% of the market.

Upon completion of the deal, Stuart Grice, current head of trade credit for Howden UK, will become Xenia’s client service director for the North West and Scotland. Meanwhile, Chris Evans, CEO of Howden UK, says that Howden Group will concentrate on its global trade credit, surety and political risks business, while continuing to work in “close partnership” with Xenia.