Unconditional clearance of deal between two major UK insurance companies

The Competition and Markets Authority (CMA) has recently published its decision to unconditionally clear at Phase I the transaction involving Atlanta (an insurance broker) and Markerstudy Group (active in insurance underwriting and insurance broking), two major players in the UK insurance industry.

The CMA examined the vertical relationship between the Parties’ activities in the underwriting and distribution of motorcycle insurance in the UK and raised both input foreclosure and customer foreclosure theories of harm. 

Regarding input foreclosure, the CMA concluded that, post-transaction, the Parties would not have the incentive to foreclose rival motorcycle insurance brokers.  The CMA’s assessment placed substantial weight on RBB’s switching analysis, showing that brokers can easily switch to alternative underwriters in the event of foreclosure. In relation to customer foreclosure, the CMA found that the Parties would not have the ability to foreclose motorcycle insurance underwriters. 

RBB’s team, led by Adrian MajumdarAdrian MajumdarManaging Partner and Ethel FonsecaEthel FonsecaPartner and supported by Julian GroppJulian GroppAssociate Principal, advised the Parties during the Phase I review period alongside Slaughter and May and Herbert Smith Freehills.