Catlin sells stake in major U.K. telematics provider

Catlin Insurance Company has entered into an agreement to sell its investment in Box Innovation Group, which includes telematics offerings from Insure the Box, to Aioi Nissay Dowa Insurance Company of Europe.

Aioi, a subsidiary of major Asian insurer MS&AD Insurance Group, will acquire shares from Catlin and other shareholders to will own 75.01% of Box Innovation Group, according to a statement from Catlin issued Monday.

Aioi will also take over the underwriting of the main parts of Insure the Box. According to the Insure the Box website, it accounts for more than half of the telematics market in the United Kingdom.

“MS&AD believes in the technical evolution in the Automotive sector, and that the future mobility trends will lead to a strong increase in demand for connected car solutions and services over the next 10 years,” Aioi said in its own statement Monday.

“Furthermore, MS&AD’s strong strategic partnership with Toyota Motor Corporation and Toyota Financial Services also underlines the strategic importance of this acquisition,” it said. “This new technology will allow the delivery of user based Telematics solutions for key clients as well as the wider market.”

Catlin Insurance will receive cash proceeds of £85 million from the transaction, which is expected to close in the first quarter of 2015.

Catlin first invested when Insure the Box was launched in 2010, but “after detailed evaluation determined the time is right to exit the investment and allow BIGL to find the right partner for the next phase of its development,” it statement said.