UK-based Davies acquires SCM Insurance Services

Davies, a UK-based specialist professional services and tech company serving the global insurance market, has signed an agreement to acquire SCM Insurance Services, Canada’s largest claims processing and risk solutions provider.

Terms of the agreement were not disclosed.

“We are thrilled to have gotten this deal signed, bringing the SCM team into Davies,” Davies Group CEO Dan Saulter says of the deal. “The business is very highly regarded in Canada, and as market leader, this puts us in the Number 1 spot in this growing and vibrant market.

“The deal will allow us to unlock significant growth opportunities on both sides of the ledger; with SCM clients benefitting from our global reach and wider service offering; and with Davies clients being able to access the best claims and risk solutions teams in Canada.”

Bob Fitzgerald, SCM Insurance Services CEO, comments: “Our clients will now have access to Davies’ global solutions, immediately elevating our technology, AI and platform offering.”

All three of SCM’s operating businesses will join the Davies global platform, specifically:

• ClaimsPro, a claims adjusting firm
• IPG, SCM’s third-party claims administrator
• Pario, SCM’s forensic engineering and consulting business and post-loss appraisal

Following the deal, Davies says it will have revenues of $1.4 billion, and a combined team of 9,500 people operating in 22 countries across Europe, North America, South America, Asia and Australasia.

Davies says SCM’s companies will allow it to expand its existing risk management, third party administration, and end-to-end claims solutions offerings across North America.

It also means Davies can offer specialized services for insurers, brokers, MGAs, Lloyd’s Syndicates, corporates, the public sector and captive owners.

“The deal represents Davies’ largest strategic M&A addition to date and will allow the fast-growing tech-enabled firm to provide a full nationwide service across Canada, in addition to adding SCM’s U.S. operations to Davies’ existing U.S. footprint,” as Davies describes the deal in a release.

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SCM has more than 1,500 professionals working across Canada and the U.S. They will join Davies as part of the deal.

The firm’s existing institutional shareholders, Warburg Pincus and TorQuest Partners, announced they will reinvest part of their proceeds and become minority shareholders in Davies. The company’ current institutional shareholders are BC Partners, AIMCo, and HGGC.

BC Partners took a majority stake in Davies in August 2021. Davies says its business tripled annual revenues under BC’s ownership.

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Earlier this year, Davies announced it is significantly increasing its multi-million-dollar investment into technology and AI, integrating agentic AI features, and upgrading its ClaimPilot product suite to benefit its 2,000-plus insurance clients around the globe.

Technology and AI investment is one of four pillars in Davies’ Vision 2030 strategy.

The other three pillars are: organic growth and cross-selling; geographic and solution expansion; and operational excellence.

Davies says it’s aiming for more than $3.5 billion in annual revenues by 2030.

David Gambrill

David has twice served as Canadian Underwriter’s senior editor, both from 2005 to 2012, and again from 2017 to the present.