Lark Insurance explore sale with the appointment of a banking advisory

Lark Insurance is exploring a potential sale and has brought Fenchurch Advisory to assess potential options. Investor memorandums are believed to have been sent out with a price tag of between £60mn-£70mn. Hiscox own 25% of Lark with the management team owning the remainder following a buyout from Groupama in 2012. The Hiscox backed broker offers commercial, household, employee benefits and musical instument services on top of its flagship private clients business. In 2015 the company generated revenues of £23.3mn of which £5.2mn was pre-tax profit. Graham and Stephen Lark run the business and with Graham being so close to retirement it is believed this is the motivation for a sale. It has been reported that the company will be keen to keep its independence in any buyout. Since 2012 the company’s finances have remained largely consistent with a small but sustained growth over the period.