CBL in talks to buy UK tax investigation insurer Professional Fee Protection

Tuesday 10th November 2015

CBL Corp, the newly NZX listed company that sells credit surety and financial risk insurance, is in talks to buy UK tax investigation insurance provider Professional Fee Protection for an undisclosed sum.

PfP offers insurance covering professional fees incurred as a result of investigations by or disputes with tax authorities, complementing CBL's British based business, European Insurance Services, which distributes construction sector insurance products in France, the Auckland based company said in a statement. PfP has more than 5,000 medium sized national and regional accounting firms in the UK on its books, which have a range of small to medium enterprises signed up for the insurance policy.

"Acquiring PfP would give us the opportunity to offer their clients the full range of CBL’s products and services, and at the same time extend PfP’s operation into our other international markets," said CBL managing director Peter Harris. "Like EISL, PfP is a Managing General Agency (MGA) earning brokerage and fees, but does not take risk."

CBL expects to complete the transaction by the end of the year, it said.

Its shares, which were listed last month, last traded at $1.74, ahead of the initial offer price of $1.55.

BusinessDesk.co.nz

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