Global insurance giant Zurich Insurance is set to acquire a stake in Icen Risk, a Lloyd’s of London coverholder and a growing player in London’s specialist insurance market.
Since it was founded in 2018, Icen has carved out a niche in transactional risk, notably tax and intellectual property risk in complex M&A deals.
According to the firm’s founders, Dawn Bhoma and Rob Brown, Icen’s position in the market was a key selling point for Zurich.
“They decided that while they love M&A insurance and are committed to it, the lack of direct control, particularly with policies not issued in their name, was a frustration. Therefore, they wanted to invest in the right partner to help push forward their ambitions to become a leading M&A offering,” they told City AM.
The combination will also help Icen, which recorded gross written premium of £70m last year, reach a larger market.
“For us, this provides the benefit of blue-chip capital and distribution, which will really help us achieve our business ambitions much faster with Zurich’s support,” the founders explained.
Under the terms of the deal, Zurich has agreed to acquire an equity stake, which will support the rollout of new products to additional geographies. Icen will continue to operate independently under its existing brand and leadership team.
The deal comes at a pivotal time for Icen. Demand for unique, bespoke insurance policies is growing, and the firm estimates the market for M&A insurance is currently worth around £2.5bn a year.
“There’s still a lot of growth potential due to increased adoption, geographical expansion, and new product development. M&A deals are now structured with insurance in mind, so it’s a permanent part of the landscape and will continue to develop within a large customer segment,” Rob Brown told City AM.
One product that’s grown particularly fast is tax liability insurance. Mainly used by private equity funds, “its use is growing among individuals and corporate buyers” as they seek protection against potential tax liabilities from legacy decisions.
“This area has grown exponentially in the last five years, not just in the UK but across Europe,” Brown explained.
Icen has also developed other products to meet the changing needs of business.
“Last week, we offered intellectual property cover on the sale of a UK-based video games business, reflecting the thriving and innovative video game industry in the UK,” Bhoma told City AM.
“Similarly, with university spin-off transactions, where the UK is strong in tech and healthcare innovation, there’s a demand for intellectual property insurance to protect against potential title issues.”
Stephen Moss, global head of financial lines and cyber at Zurich Stephen Moss will become a member of the board of directors of Icen.
The transaction is subject to regulatory approval and is expected to close in the third quarter of 2025.