RSGC Buys Part Of Dashwood, Brewer & Phipps

NU Online News Service, June 23, 12:29 p.m.EDT?RS Group of Companies Inc. said it has acquired a 49percent interest in Dashwood, Brewer & Phipps, Ltd., a Lloyd'sand London Market Insurance Broker based in London.[@@]

Terms of the deal were not released.

RS Group, formerly known as Rent Shield Corp., based in Toronto,said the deal is expected to yield more than $4 million annually inminority income from the broker.

RS Group said the acquisition would provide the firm with amethod to recapture brokerage expenses on placements of insurancerelated to its business operations, including its recently launchedresidential rental guarantee program.

Under the terms of the transaction, RSGC will place insurance inthe London and Lloyd's markets through Dashwood. RSGC will payDashwood ?1.5 million ($2.7 million U.S.), which will be funded bybrokerage commissions earned by Dashwood from insurance placed byRSGC.

Through its equity position, RSGC said it would recover 49percent of the estimated $8 million of brokerage expenses onbusiness it expects to place through Dashwood.

RS Group of Companies' core product, the RentShield ResidentialRental Guarantee Program, provides insurance to landlords fortenant failure to pay rent, damage to apartments, and assumesexpenses for evictions. The product also provides otheradministrative services for landlords and tenants.