The Markerstudy Group

The Markerstudy Group was founded in 2001 to provide motor insurance in the UK. Over the years, the Group has extended its products and services in various markets - including travel and pet. It has grown organically and through acquisitions, including the distribution business of Co-op Insurance and Brightside Group in 2020 and 2021 respectively. BGL Insurance ("BGLi") was acquired in April 2022, a leading digital distributor of motor and home insurance products in partnership with several of the best known brands in UK financial services and through own brands Budget Insurance, Dial Direct, Zenith Insurance, Geoffrey Insurance, Jaunt and Nutshell, all supported by state-of-the-art, award-winning contact centres and market-leading digital platforms. The Markerstudy Group also includes a Managing General Agent ("MGA"), Markerstudy Insurance Services Limited ("MISL"), which provides a full range of claims and administration services to a large number of intermediaries in the UK. The Markerstudy Broking division comprises of a number of brands including BGLi and Insurance Factory - one of the UK's largest pet insurance platforms - and complementary businesses Auto Windscreens, Vision Vehicle Solutions and VisionTrack. The BGLi acquisition brings a strong array of affinity insurance partners and customers to the Group. 2022 was a year of material change within the Insurance market with the introduction of the FCA General Insurance Pricing Practices (GIPP) regulation, higher than anticipated inflation in claims and overheads, specifically salary, as a consequence of both the war in Ukraine and the general state of the UK economy post the COVID pandemic. The Markerstudy Group has been able to manage these headwinds through each of its operating divisions.

# Business Review And Future Developments

Retail Distribution BGL Insurance ("BGLi") Acquisition On 29 April 2022 the Markerstudy Group completed the purchase of the BGL Group's insurance distribution business ("BGLi") for a consideration of £428.6 million. The acquisition was funded by a mixture of a drawdown of the unitranche debt funding, rolling credit facilities and a capital injection from the Company's parent entity, Venus Topco Limited. BGLi is a leading insurance distributor and already had a strong existing relationship with the Markerstudy Group, acting as an outsource partner to a number of Markerstudy brands such as Co-op Eco, Zenith and Geoffrey. In addition, BGLi places all glass replacement and repair work through Auto Windscreens. Post-acquisition a number of strategic and operating transformation activities were undertaken to align management and governance structures and to achieve deal synergies. It was also decided that the life insurance broking business was not core to the strategy of the wider Markerstudy Group and the subsidiary BGL Direct Life Limited, operating under the Beagle Street brand, was sold. Following a turbulent start to trading post GIPP implementation, H2 saw a significant recovery in new business competitiveness whilst also maintaining strong renewal rates, all despite pressures from increasing net rate inflation from underwriters towards the end of the year. Customer numbers returned to growth across the second half of the year, importantly supported by strong uplifts in the higher margin Direct and Own brands. The business development pipeline remains strong, with potential back book purchases being explored and continuing discussions with new partners. The strategy of BGLi remains to deliver digital-led retail motor and home insurance, with several key strategic partners, both directly and through the main price comparison websites. We are a trusted partner, delivering exceptional customer service and high value insurance products.