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Remaining Parker Norfolk divisions up for sale as administrators FRP hired

A photograph of the Lloyds Building in London from ground up

Lloyd’s broker Parker Norfolk, launched with backing from Maven Capital Partners in 2018, is to sell off its remaining business portfolios and close its doors, this publication can reveal.

Administrators FRP were appointed on Monday, after the intermediary “experienced financial challenges during the Covid-19 pandemic”.

The news follows the announcement yesterday from Nexus’s trade credit broker Xenia that it had acquired two books of business from Parker Norfolk – its flagship trade credit segment and its financial and specialty lines unit.

Five employees have transferred to Xenia while three members of staff from Parker Norfolk’s head office have been made redundant.

FRP said it is in discussion with potential buyers for the remaining two Parker Norfolk divisions, retail and specie.

The trade credit portfolio was Parker Norfolk’s flagship book and its founding line of business.

Former RKH trade credit brokers Alan Wallace and Tracey Anderson secured Maven’s backing and bought Parker Norfolk in August 2017 from Miles Smith, in a shell acquisition that brought with it Financial Conduct Authority accreditation and a Lloyd's licence.

Maven’s initial funding package at the time was believed to be in the region of £5mn ($6.74mn).

The company then formally launched in 2018 and quickly expanded with the hiring of former Besso CRO Peter Dalton, Price Forbes political risk broker Rupert Cutler and Cobalt co-founder Richard Bishop.

It also recruited Marsh trade credit brokers Rob Farquharson and Laura Ferguson.

The company’s 2019 annual report recorded Dalton’s departure from the business.

Last year, the intermediary pushed into construction business with the appointment of former Aspen head of international onshore construction Sam Whitnell.

In its start-up year, the broker recorded a loss of £290,136 according to Companies House records.

The loss deepened in 2019 to £1.15mn. Its 2020 accounts, for the 12 months to 30 September last year, are currently overdue.

Maven also participated in funding broker consolidator Global Risk Partners (GRP), participating in a £55mn fundraising round in 2013 that was led by Penta Capital.

After taking on the Parker Norfolk portfolios, Nexus has dropped its planned sale of Xenia, this publication also revealed earlier this week.

Anthony Collier, partner at FRP and joint administrator, said: “The Covid-19 pandemic has significantly impacted firms from all sectors in the UK, including those in the insurance industry.

“The changes to economic activity and employment levels have caused significant challenges to those operating in this sector.

“We’re pleased to have secured the sale of two of the firm’s divisions and transfer of some roles...and wish the new management team every success in the future.

“We’ll also continue to support the affected members of staff during what we know can be an extremely challenging time.

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