What's Happening?
Davies, a London-based professional services firm, has announced its acquisition of SCM Insurance Services, a claims processing and risk solutions provider headquartered in Edmonton. SCM, founded in 1986,
operates three businesses: ClaimsPro, IPG, and Pario, which specialize in claims adjusting, third-party claims administration, and forensic engineering, respectively. This acquisition, the largest in Davies' history, will increase its annual revenue to $1.4 billion and expand its workforce to 9,500 employees across Europe and North America. SCM's shareholders, Warburg Pincus and TorQuest Partners, will reinvest part of their proceeds into Davies, becoming minority shareholders.
Why It's Important?
The acquisition of SCM Insurance Services by Davies is significant as it strengthens Davies' risk management and claims solution offerings in North America, allowing it to provide comprehensive services across Canada. This move positions Davies as a market leader in the Canadian insurance industry, enhancing its ability to serve over 1,700 organizations in insurance, financial services, and the public sector. The integration of SCM's expertise in claims management and forensic engineering will likely improve Davies' operational capabilities and client offerings, potentially leading to increased market share and competitiveness.
What's Next?
Following the acquisition, Davies plans to leverage SCM's capabilities to enhance its technology, AI, and platform offerings, providing clients with global solutions. The integration process will involve aligning SCM's operations with Davies' existing practices, focusing on expanding service delivery and client engagement. As Davies consolidates its position in the North American market, it may explore further acquisitions or partnerships to bolster its service portfolio and geographic reach.
