Managing general agent Nexus Group has enhanced its newly formed broking arm, Xenia Broking Group, with the acquisition of trade risk specialist Credit & Business Finance (CBF) for an undisclosed amount.
Nexus launched Xenia on March 29, as part of its plan to continue the strategic expansion of its broking operations both in the UK and internationally. The unit consolidates Nexus’ broking activities, segregating them from the group’s underwriting operations, and counts on its board the three directors of Credit Risk Solutions (CRS), which was the first trade credit broker the group acquired in October 2017
According to Nexus, gaining CBF is the latest step in its strategy of combining M&A and organic growth to build what it says will be the leading independent broker in the trade credit market.
The CBF management team of managing director Trevor Price, sales director Matthew Green and services director Mark Kennedy will continue to run the business from their current offices. They will also join the board of Xenia alongside the directors of CRS.
With the acquisitions of CRS and CBF, Xenia claims to unite the two biggest producers of ‘new-to-market’ business and will hold a share of more than 11% of the estimated £350mn gross written premium for the UK trade credit broking market.
Commenting on the purchase, Tim Coles, CEO of Xenia, says: “We previously set out our stall to establish the leading independent trade credit broker. A business of the quality of CBF joining us goes a long way to realising this vision and strategy.”
Nexus has so far purchased 14 companies, including three in 2018. On April 1, the company concluded a second round of capital raising worth £16mn to enable it to continue its merger and acquisition activity.
Founded in 2008, Nexus Group is an acquisitive insurance intermediary group comprising of specialist trade credit broking services and specialty managing general agent assets. It underwrites 15 specialty business classes on behalf of over 30 underwriting partners.