The deal sees HSB take over a business that includes managing general agent MD Insurance Services, Premier Guarantee Surveyors and the LABC Warranty brand.
HSB said it wanted to expand its insurance offerings within the UK construction sector to create an engineering-led specialist organisation focused on a risk management-led approach.
The deal was first reported last November.
LABC (originally Local Authority Building Control) and Premier Guarantee are two of three main providers of structural warranties for new homes, along with NHBC (the National House-Building Council).
Based in Birkenhead, the MD Group has 443 employees, including a national network of field-based building surveyors. It will continue to operate from Birkenhead and Jacki Goodman will remain as managing director, reporting into HSB鈥檚 chief executive, Stephen Worrall, in the new organisational structure. MD founder, chairman and chief executive Gary Devaney, 66 this month, has now retired
HSB has had a relationship with the MD Group since 2012, providing specialist machinery inherent defects insurance to customers and more recently primary insurance capacity for its inherent defects insurance facility.
Stephen Worrall said: 鈥淭his is a great acquisition as it supports our mutual future ambitions and strategy for growth. The combined businesses enhance our strength as a specialist insurer and risk solutions partner.鈥�
Jacki Goodman, managing director of LABC Warranty, added: 鈥淲e have worked hard to achieve our success and our unwavering commitment to serve the construction sector led us to our position as a leading player in the latent defects insurance market. Becoming part of HSB is both a reward for these efforts and testimony to our ability, reputation, and potential to realise even greater success.鈥�
Most recently filed accounts for MD Insurance Services show a loss of聽 拢5.1m before tax in Covid-hit 2020 on turnover down more than 40% at 拢41.3m.
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