International Financial Group Limited (IFGL) - parent company of RL360, Friends Provident International and Ardan International - has this morning announced a deal in which private equity firm Cinven will become its majority investor, succeeding long-term major partner Vitruvian Partners. 

The announcement comes after November last year, when International Investment exclusively covered IFGL group chief executive David Kneeshaw's response to rumours circulating that IFGL was up for sale.

The deal  - which is subject to regulatory approval - will see Cinven take over from Vitruvian and allow IFGL to continue its ambitious growth and expansion plans, the company said. Cinven has previous life insurance investment experience, including Guardian in the UK and Viridium in Germany, with a strong track-record of investing in companies who want to "step-change their growth". 

Luigi Sbrozzi, Partner at Cinven, said "Cinven is delighted to be investing in IFGL. IFGL is an established insurer with a strong market position. It has a large back book, which sits alongside an established new business franchise that is well diversified geographically. Cinven knows the market well through its previous life insurance investments, including Guardian in the UK and Viridium in Germany, and has a strong track record of working with companies in the sector to achieve strong growth, in particular, through buy-and-build as well as further product development and internationalisation.' 

IFGL's Group Chief Executive David Kneeshaw told II that he was personally delighted with the deal, which was a reflection of the company's business philosophy as well as the growth potential. He also revealed that he would "not be taking a back seat" and would continue leading from the front as this new development phase is integrated for the company."

"There is absolutely no back seat for myself and the rest of the management team on this," said Kneeshaw. "It was one of the reasons that the deal was so exciting on both sides."

'Very significant'

"This is a very significant day for IFGL and will accelerate the Group's ambitious plans for growth. Cinven share our vision for the future and their financial backing means we will be ideally placed to expand significantly through both organic and new market growth and through further mergers and acquisition activity. 

"We would like to thank Vitruvian Partners for being exactly the investor we needed over the last 8.5 years. Their support has been key in helping us achieve everything we have since 2013. We now look ahead to what will be a hugely exciting new period for IFGL."

Stephen Byrne, Partner at Vitruvian Partners, said: ‘We would like to thank the team at IFGL for an amazing partnership over the last 8 years. The successful integration of major acquisitions, coupled with technology investment and product expansion have allowed the company to expand assets under administration by over eight times and become a global leader in international wealth services. We believe IFGL is well positioned to continue their success, and we are confident that Cinven will be a great partner to the Company for the future.' 

International Financial Group Limited (IFGL) provides investment, savings and protection solutions to international investors based around the world. IFGL comprises RL360, Ardan International and Friends Provident International. The group employs more than 550 staff and administers assets of GBP19 billion across 218,000 policies.