The Insurance Surgery has been bought out by the management from founder Paul Mellor, funded by Seneca Partners' Special Situations Fund.
As part of the move Tim Murphy one of the founding partners of Seneca will join the board of The Insurance Surgery.
The buyout aims to encourage growth in the business, The Insurance Surgery is an adviser firm for clients with pre-existing medical conditions, hazardous occupations and for extreme sports.
Seneca Partners are a specialist funder and adviser to small businesses, with their current companies having invested assets in excess of £500m, while their dedicated banking division advises on debt of over £4bn.
Dan Sharpe, managing director of The Insurance Surgery, said: "We are delighted to have acquired The Insurance Surgery from Paul Mellor who founded the business in 1999 and we wish him every success in the future.
"We are now extremely excited about this unique opportunity to help grow our specialist insurance brokerage with the help and backing of Seneca.
"Our aim is to continue to offer a market leading service to our clients and to help continue to revolutionise the special risks insurance market by working closely with providers, medical charities and even medical technology companies."
Murphy said: "This is exactly the type of dynamic team and specialist business that we look to back.
"There is a massive opportunity to expand the business by increasing the consumer's awareness of their services which have the potential to deliver far lower life cover premiums and importantly, policies that deliver for people with pre-existing medical conditions."
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