PREMIUM CREDIT LIMITED MAKES IMPORTANT ANNOUNCEMENTS IN CONNECTION WITH TRANSITION TO INDEPENEDENT OWNERSHIP
LONDON, 5 November 2012: Premium Credit Limited, the leading provider of payment facilitation and financing services in the UK and Ireland, is pleased to make important announcements in connection with the transition of the company to independent ownership. On 31 October 2012, the company was purchased by management and leading private equity firm GTCR from MBNA Europe, in a deal involving approximately £900 million in asset value. Following the closing of this transaction, the strategy for the company will continue to be to offer market-leading services with a high degree of focus on relationships with its partners. In addition, the company will pursue accelerated growth through investment in technology and innovation in service and product offerings.
Andrew Doman assumed the role of CEO of Premium Credit upon the closing of the transaction after working closely with GTCR and existing management to structure and complete the transaction. He was previously Chairman and CEO at the global investment consulting firm Russell Investments, where he was responsible for leading the recovery of the business following the global financial crisis.
Before joining Russell Investments, Andrew spent over 20 years at management consulting firm McKinsey & Co, where he worked from 1986-2008 and served as a Director from 1999, building a formidable reputation within the financial services arena. At McKinsey he was Director of the UK Insurance and Asset Management Practice, and in that capacity served a number of leading UK and European insurers and insurance brokers.
Andrew first qualified as a doctor, and worked for a time in the Australian health service, both as a doctor and in hospital management. He also spent time within the Australian Diplomatic Service. He has an MBA from the University of New South Wales, is a Fellow of the Royal Australian College of Medical Administrators, and qualified as a Bachelor of Economics, Summa cum Laude from Ottawa University. He was previously a Non-Executive Director for The Wesleyan Assurance Society and on the advisory board of the Foster School of Business at the University of Washington.
Outgoing CEO Nick Pearce will remain as a consultant with Premium Credit and will also continue to sit on the company’s Board of Directors. Mr. Pearce first began at Premium Credit in 1998, managing the Corporate division, having previously served as Managing Director at Transamerica Insurance Finance Company, where he initiated industry-leading changes, for example; recruiting staff only from the insurance industry with appropriate qualifications, integrating TIFCO systems with broker software platforms, providing innovative pricing and structures to complex insurance premium funding opportunities and providing bespoke services to many Lloyd’s motor and liability syndicates. Nick took the corporate division at Premium Credit from a little over £200m in payment volume to £1.5billion upon MBNA’s purchase, at the same time introducing real-time internet loan application systems and broker integration solutions. He has continued developing innovative services, including the industry's first 'premium invoice and collection' service for brokers whereby brokers can outsource payment services to Premium Credit. He was also responsible for launching the first premium finance office in continental Europe in the Netherlands, and the provision of bespoke services for wholesale broker placements.
Other key leadership figures who will continue to provide continuity to Premium Credit’s clients include Simon Moran, who will remain as Chief Marketing Officer and Head of Insurance Premium Finance, and Robert Allan, who will remain as Chief Financial Officer. Mr. Doman highlighted the high calibre and capabilities of the management and employees of Premium Credit and emphasised that no reductions in staff are planned in connection with the transaction, given the growth-oriented plan for the company.
The revised Board of Directors will include Mr. Doman and Mr. Pearce as well as Collin Roche, Aaron Cohen and Michael Hollander as representatives of GTCR. Additionally, other recognised leaders in the insurance and financial service community will join as independent directors, with these announcements to be made at a later date.
The new ownership structure involving GTCR and management will bring greater focus on an accelerated growth strategy including further investment in technology and associated payment services, which are likely to bring significant benefits to clients. GTCR Managing Director Aaron Cohen, who also serves on the boards of global insurance carrier IronShore and U.S. insurance broker Assured Partners, commented "At GTCR, our experience in the insurance industry has enabled us to understand the importance of technology to provide critical services, as well as the key role that brokers play in attracting and serving clients."
Outgoing CEO and current board member for Premium Credit, Nick Pearce stated:
"In the present economic climate Premium Credit’s installment financing provides vital support for many businesses and households in the UK and Ireland, allowing them to spread the burden of ever-increasing insurance premiums and other important payments and keep control of their cash-flow at an economical cost."
"In the last eight years under MBNA ownership we have achieved a great deal; we continue to be the largest provider by a considerable margin, renewing all our major contracts and securing significant new relationships with our winning capabilities. BIBA continues to recognise us as their only endorsed premium finance company, whilst the industry’s Networks and Alliances maintain Premium Credit (PCL) as their preferred premium finance partner. In 2004 we established our services in Ireland creating an experienced team based in Dublin at the heart of the Irish insurance industry. We have continued to lead the field through our pioneering products and services. A recent innovation, My Premium Credit, provides an online customer portal delivering an improved experience, unique to our industry."
"I am delighted to see the legacy of the work that we have done now secured. The new ownership brings with it opportunities for infrastructure investment and growth (particularly in the digitisation of our operations and expansion of our product range) and will enable us to further expand our existing focus on providing outstanding service to all our customers in the UK and Ireland.”
Incoming CEO Andrew Doman further commented: “The total asset value of this deal was approximately £900 million, which makes clear both the scale of the business and opportunity that GTCR has seen for us to further grow our market presence and business scale. We see a significant opportunity for new products and services in the payment facilitation area, and will look to take advantage of these in the coming months and years."
"Premium Credit has a great future, and I see my role here as one of nurturing and developing existing potential with the support of the new investment that GTCR can provide. As a newly capitalised and independently managed business we have developed a strategy centred on the broker and the customer. We see significant opportunity to improve online integration with our intermediaries and our end customers."
"I look forward to working with Nick, Simon, Robert and the whole team at PCL to continue building PCL's reputation for outstanding client service. With the support of our partners in ownership, we will unleash the innovation potential of the business and maintain our market leadership in payments facilitation services for individuals and businesses."