The Ardonagh Group Ltd. has agreed to sell Direct Group's claims business to U.K.-based Davies Group Ltd. for up to £36 million dependent upon performance.
Davies Group will add the business to its claims solutions business, which will continue to be led by Executive Chairman Darren Coombes and COO Kath Mainon. Direct Group's claims team, along with managing director of claims, Russell Crewe, will join Davies Group. The combined business will have operating centers in the U.K., Ireland and Bermuda.
Ardonagh said it will use the proceeds of the sale for further investment.
Davies Group and Ardonagh have also entered into a long-term claims management agreement under which Davies Group will continue to support Ardonagh's underwriting and broking businesses in claims handling, loss adjusting and fulfillment.