Insurance sale nets executives €25m

Three businessmen who spent decades working in the insurance industry have realised €25.2 million from the sale of their company Europa General Insurance to Royal & Sun Alliance, the multinational insurer, writes Arthur Beesley, Senior Business Correspondent

The biggest beneficiary of the transaction is the retired company founder Tony Toyliston, whose 54 per cent share of the company was worth €13.61 million.

From England, he worked for years in Canada before joining Celtic Insurance in Galway, where he still lives. He worked previously for Royal & Sun Alliance.

Retired company co-founder Noel McGrady, also based in Galway, will receive €2.52 million in respect of his 10 per cent stake. Mr McGrady, who also worked in the past for Royal & Sun, diluted his stake in the company in 2003.

The other beneficiary is the Belfast-based chief executive Jack McIlduff, a former Lloyds underwriter and broker, who will receive €9.07 million for his 36 per cent of the company.

"It's a good day for me after a long career in the insurance industry," he said.

"Unfortunately, I will continue working for a number of years yet. I will remain on as chief executive of the company. I'm looking forward to it. It's almost like a new career."

Europa General Insurance employs 48 staff in Galway and 22 in Belfast.

The company made a pretax profit of €7 million last year on net written premiums of €22.5 million. Gross written premiums amounted to €40 million.

Controlled by McRoyl Holdings, the vehicle in which the three men held their stake in the business, the company offers private motor, commercial vehicle and liability insurance. Working mainly with brokers, it has strong niche positions in the food processing, construction and taxi sectors, where it offers group schemes for drivers.

Royal & Sun Alliance said Europa will continue to operate under its own brand and structure after the sale.

The deal was in line with its policy of taking positions in targeted segments of the market, Royal & Sun said.

"We have a strong business in Ireland and this acquisition reflects our intent to achieve further profitable growth," according to its chief executive Paul Donaldson.