The Financial Conduct Authority has imposed customer and capital limits on private equity-backed insurer Markerstudy, placing regulatory constraints on an acquisition-driven growth strategy supported by Pollen Street Capital and Bain Capital.
The restrictions apply across Markerstudy’s regulated businesses and require the group to remain within agreed limits on policy numbers and funding while governance and financial control issues are addressed. According to the Financial Times, the measures stem from concerns linked to the insurer’s deal-led growth over recent years.
“A cap has been agreed with the FCA that both parties consider appropriate and consistent with our strategy and customer-focused growth ambitions,” Markerstudy told the Financial Times. “We continue to operate at mandatory solvency margins and carry a buffer in line with regulatory requirements.”
The limits have been implemented through voluntary requirements recorded on the FCA register. Notices state that affected entities must not “take any steps” to exceed agreed customer thresholds without regulatory consent and must “maintain an agreed sum of funds.” The FCA often uses such measures instead of formal enforcement action.
More than a dozen Markerstudy businesses are covered. These include Brightside, co-founded by Arron Banks, now a senior figure in Nigel Farage’s Reform UK party, though he exited the firm in 2012. Atlanta Group is also included. Markerstudy acquired the owner of Swinton, Marmalade and Healthy Pets in a £1.2bn deal in 2024. Other affected businesses include BISL, which owns Budget and Dial Direct, Hughes Insurance Services in Northern Ireland, acquired in 2024, and Insurance Factory, owner of the Purely Pets brand.
The regulatory intervention comes during renewed market discussion about a possible initial public offering. Bloomberg reported in November that Pollen Street had begun early talks with investment banks over a potential listing that could value Markerstudy at more than £3bn, with London among the venues under consideration. Other reports have placed the valuation above £4bn. A person familiar with Markerstudy said it has no plans to float.
Founded in 2001 by insurance broker Kevin Spencer and Gary Humphreys, Markerstudy employs more than 6,500 staff. Customer numbers have been cited differently across disclosures. The Financial Times said the group serves more than eight million customers, while other published reports have placed the figure at around six million.
In its latest accounts, Markerstudy reported revenue of £694 million in 2024 and a post-tax loss of £141.7 million. Interest payments of £136 million on nearly £1.4 billion of debt accounted for most of the loss. On an EBITDA basis, the group reported a £60 million profit, compared with a £12.9 million loss the previous year.
The FCA has increased scrutiny of insurers following a Which? super-complaint into customer outcomes in travel and home insurance markets.
