BGC Partners Inc, a leading global brokerage and financial technology company, has entered into an agreement to sell its insurance brokerage business for $500 million to The Ardonagh Group Limited.

The sale will include Ed Broking Group Limited and Besso Insurance Group Limited, which were recently grouped together under the brand of Corant Global. Corant Global has Bermuda operations.

About 900 people work across each of the insurance brands being bought, and contributed approximately $191 million in revenue during the twelve-month period that ended on March 31, according to Jersey-registered Ardonagh.

The businesses being bought will become part of the Ardonagh Specialty segment, which comprises Price Forbes, Bishopsgate and Compass London Markets.

David Ross, chief executive officer of Ardonagh, said: “We’re delighted to welcome each of BGC’s insurance brokerage businesses to our Ardonagh Specialty platform. This is a compelling shake-up of the global wholesale landscape, bringing two of the last remaining independent outfits of scale together to create the largest privately owned specialty broker in London, safeguarding choice for both clients and employees.

“A backdrop of unprecedented levels of consolidation has created a vacuum in the market, a space from which the BGC and Ardonagh businesses will emerge together as a pre-eminent force, restoring balance and cultivating a preferred destination for top-performing talent.”

Howard Lutnick, chairman and CEO of BGC, said: "The agreement to sell our insurance brokerage business for $500 million reflects the significant value we have created since entering this market in 2017. Like our previous sales of eSpeed and Trayport, as well as our IPO and tax-free spin-off of Newmark, this sale further demonstrates our commitment to driving shareholder value.

“While we have built an exceptional insurance brokerage business, this sale will focus our resources on Fenics. We expect to use the proceeds to accelerate Fenics growth and to repurchase shares and/or units.”

Mr Lutnick said Ardonagh was an excellent partner to continue the insurance brokerage business, and its combined platform will “create the world's leading independent specialty insurance broker”.

The sale proceeds will be used to provide additional capital to accelerate Fenics growth, BGC said.

Mr Lutnick said: "We have been clear and consistent about our plans to express the value of BGC's assets. This transaction demonstrates our commitment to increase shareholder value and focus our interest on Fenics, which we believe represents the greatest opportunity for our company."

The transaction is expected to close in the second half of this year, subject to customary closing conditions, including the receipt of required regulatory approvals.