Manchester-based Principal Insurance has acquired Bristol-based Europa Group, which includes the MotorCycle Direct brand and Europa Underwriting, which trades under the Ridersure wholesale brand. Principal said it had financed the deal through shareholder funds.

The deal creates a broking group generating gross written premium of more than £60m and serving upwards of 120,000 policyholders. Principal was founded in 2011 by former Carole Nash executive Dave Bowcock.

Bowcock said: “This acquisition not only makes impeccable commercial sense to Principal, but provides Europa with the opportunity to unlock shareholder value while joining a group with the scale and investment capacity to support its next phase of growth.”

He expected the deal to enable Principal to push further into niche sectors of the motorcycle market and to develop new opportunities in the wholesale market through Ridersure.

Richard Waring, managing director of Europa Group, added: “Having built the business through investment in technology and innovation, we decided the time was right to realise its value and pass it on into safe and trusted hands.”