Scotland’s largest independent insurance broker, Perth’s GS Group, has been acquired.
The deal by JMG Group, for an undisclosed sum, is subject to Financial Conduct Authority approval.
The GS Group was formed in Perth 31 years ago by managing director George Stubbs, with second hand furniture and a coffee machine.
It now has 50 employees operating from offices in Perth, Dundee, Aberdeen and Glasgow.
GS Group growth targets
Mr Stubbs, 57, will remain a shareholder and continue to lead the GS Group business.
He said the management team had already drawn up ambitious growth targets.
“We are currently a £30m gross written premium (GWP) business,” he said.
“This investment will help us to achieve our growth ambitions of becoming a £50m GWP business in the next four to five years.
“We will continue to offer the same professional service with the existing team.
“We will still operate as the GS Group, but with the benefits of being part of a larger group of insurance businesses.”
JMG Group is one of the UK’s leading insurance brokers, made up of 15 businesses operating from 19 offices.
Mr Stubbs described the proposition from JMG Group as “attractive”.
He adds: “The company echoes our values. It will allow us to grow autonomously whilst supporting the development of our team.
“It will also give us access to markets and infrastructure that will increase our ability to grow the business.”
Consolidation of brokers
In recent years the GS Group has been on the other end of acquisitions.
In 2019 it purchased Alyth firm I & D Insurance Services.
Just over a month ago GS Group acquired Strathtay Insurance Brokers of Clepington Road, Dundee.
Nick Houghton, chief executive of JMG Group, said: “This is an exciting deal for our expanding group as our growth strategy ramps up another gear.
“The GS Group is a major player in Scotland and this deal complements our recent investment in the Scottish broking market.
“We believe we have found a fantastic cultural fit in George and his team.”
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