Funds advised by Apax acquire PIB Group from The Carlyle Group

Apax

25 January 2021

London, UK, 25 January 2021 – Funds advised by Apax Partners (the “Apax Funds”) today announced the acquisition of the PIB Group (“PIB”), a leading independent specialist insurance intermediary, alongside PIB’s management team. Funds advised by The Carlyle Group, PIB’s existing investor since 2015, will re-invest for a minority stake. The financial terms of the transaction (which is subject to applicable regulatory approvals) were not disclosed.

PIB’s executive management team, led by Chief Executive Officer Brendan McManus and Chief Financial Officer Ryan Brown, will continue to lead the business following the acquisition.

Launched in 2015, PIB has grown significantly during Carlyle’s ownership, both organically and through acquisitions. Today it is a highly diversified insurance distribution consolidator focusing on specialist commercial lines and non-standard personal lines products with deep expertise across both direct and B2B distribution through its broking, underwriting and network divisions. Since launch, PIB Group income has risen from nil to approximately £175m on a pro-forma basis in 2020. The company employs over 2000 employees in the UK, Channel Islands, Ireland, Germany, Poland and India. PIB recently acquired Barbon Insurance Group (its 35th acquisition) and also further strengthened its European presence through the acquisitions of WDB in Poland and Marx Re-Insurance in Germany.

The acquisition by the Apax Funds will help PIB continue its impressive growth trajectory, both organically and through accelerating strategic M&A to continue its domestic and international expansion. The Apax Funds have significant experience investing in the insurance sector and helping companies consolidate large, fragmented markets, including Assured Partners, Genex and Hub International, which were successfully exited in 2019, 2018 and 2013 respectively.

Brendan McManus, CEO of PIB, said: “I’m delighted that PIB has been acquired by the Apax Funds. This is a significant milestone in our history and thanks to support from The Carlyle Group since our formation, we have built a strong and attractive business. With further investment and the significant experience that Apax will offer, we look forward to continuing our ambitious growth plans both in the UK and internationally while putting our customers and colleagues at the forefront of everything that we do. We look forward to our continued success with both Apax and Carlyle as partners.”

John Redett, Managing Director at The Carlyle Group, said: “Five years ago we backed Brendan and his management team to become a major consolidator of insurance distribution businesses. We are thrilled in what we have achieved together. Through a significant M&A programme and investment in the company’s systems and talent, the business has delivered remarkable growth. We believe there continues to be opportunities for PIB to grow and are delighted to remain involved and continue the journey.”

Ashish Karandikar, Partner at Apax Partners, said: “We see a strong investment case for the specialist commercial insurance broking market and PIB stood out as a leading player in this space. The company has grown at an impressive rate, has an excellent track record of accretive M&A deals, including international acquisitions into fragmented markets and holds a leading position as one of the largest independent corporate brokers in the UK. We look forward to working with the team, and all PIB’s customers and clients as we continue to build on the company’s great success to date, using Apax’s significant experience in the sector to drive transformation and growth.”

PIB’s achievements have been recognised in the 2020 Sunday Times Virgin Atlantic Fast Track 100 of Britain’s fastest growing companies, as well as the Sunday Times PwC Top Track 250 of Britain’s leading mid-market private companies.

Linklaters are serving as legal counsel to PIB and The Carlyle Group, and Kirkland & Ellis is serving as legal counsel to Apax. KBW is serving as financial advisor to PIB and The Carlyle Group in connection with the transaction and Jamieson Corporate Finance and Dickson Minto has been advising the management team.

ENDS

About PIB Group
PIB is a dynamic independent insurance intermediary group that provides specialist commercial insurance solutions across the UK market and beyond. PIB offers a range of specialist teams, products and services to clients throughout the UK, Channel Islands, Ireland, Germany and Poland. For more information see www.pibgroup.co.uk

About Apax Partners LLP
Apax Partners is a leading global private equity advisory firm. Over its more than 40-year history, Apax Partners has raised and advised funds with aggregate commitments of approximately $50 billion. The Apax Funds invest in companies across four global sectors of Tech & Telco, Services, Healthcare and Consumer. These funds provide long-term equity financing to build and strengthen world-class companies. For more information see: www.apax.com.

About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global investment firm with deep industry expertise that deploys private capital across three business segments: Global Private Equity, Global Credit and Investment Solutions. With $230 billion of assets under management as of September 30, 2020, Carlyle’s purpose is to invest wisely and create value on behalf of its investors, portfolio companies and the communities in which we live and invest. Carlyle employs more than 1,800 people in 30 offices across six continents. Further information is available at www.carlyle.com. Follow Carlyle on Twitter @OneCarlyle.

Media Contacts:  

For PIB Group
Lorraine Hambleton / 020 3961 7644 / Lorraine.Hambleton@pib-insurance.com

For Apax Partners
Luke Charalambous / +44 20 7872 6494 / Luke.Charalambous@apax.com
Matthew Goodman / James Madsen, Greenbrook | +44 20 7952 2000 | apax@greenbrookpr.com

For The Carlyle Group
Andrew Kenny / +44 7816 176120 / Andrew.Kenny@carlyle.com

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Crafting a modern insurance brand

Felix Capital

At Felix, our core thesis is that digital technologies are shaping consumer lifestyles, giving rise to a new generation of loved and trusted brands and platforms that offer a better customer experience (and the enabling software that helps companies do this). While these changes are deeply evident in the way we now discover and buy products (see Farfetch, Goop, Mejuri, HighSnobiety, etc.), eat (see Deliveroo, HungryPanda, Frichti etc.), travel and get around (see Heetch, Dott, VanMoof etc.), and improve wellness & fitness (see Peloton, Urban, Unmind etc.) it’s becoming increasingly obvious that consumers also want this from one of the most important parts of their life — their personal finances.

For the past few years, we’ve proactively started deep-diving into the consumer finance and insurance sectors, building our conviction in the opportunity to create a modern, better insurance brand and customer proposition. The market presents an exciting opportunity — large in size, a necessary purchase, dominated by legacy practices and almost entirely lacking in customer love. In fact, the industry has one of the lowest average Net Promoter Scores and customer churn has been growing.

However, it’s not an easy industry to disrupt, and transforming it requires founders that are passionate to change the standard ways of working, able to navigate the regulatory and operational complexity of the industry, and deliver product innovation and a truly better customer experience. We believe we have found such a company in France with Leocare, and are excited to share our investment as we lead their Series A!

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Leocare’s founders Christophe and Noureddine started the company with the mission to provide “services to protect all the most important moments in your life” offering insurance for your car, home, smartphone, motorbike (and soon other areas too). They built a digital platform where consumers can easily buy, customise and manage their personal insurance — all from their mobile app. The founders have the ambition for Leocare to become a new type of insurance, not only providing comprehensive coverage but also superior service and ease of use, and over time providing preventative assistance and becoming a highly trusted brand.

We first met Christophe and Noureddine over a year ago and have been consistently impressed by their passion and focus (some would even say obsession) with creating a great customer experience and clear product vision. Despite — or perhaps because — neither of the founders come from an insurance background, they were able to tackle the problem with a fresh pair of eyes. Tired of the lengthy process they’ve experienced themselves in getting an accurate quote for insurance, and the “black box” nature of the pricing, they built one of easiest and more seamless customer experiences with 4 steps to a quote and a live, dynamic pricing calculator that shows potential customers exactly what goes into it. Customers can manage all their insurance policies from the same app and easily make changes or updates to their policies (for example, if they’ve moved to a new house, or had a baby, or to pause or cancel a policy) as well as purchase additional policies

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Being mobile-first isn’t just a gimmick, but is actually one of the keys to Leocare creating a service that customers love. While most other insurance providers fervently hope customers never contact them, Leocare makes it as easy as possible for customers to get ongoing support, from providing thoughtful reminders and notifications in the app (for example, the company updated its customers on changing confinement rules in their location during the recent Coronavirus lockdowns), to personalised driving suggestions for car owners. Customers can also chat with customer support in the app and file claims digitally, without traditionally lengthy paperwork. As a result, instead of the industry standard of engaging with customers once a year, Leocare’s customers often interact with their insurer monthly, deepening their sense of loyalty.

And this approach of simplicity, transparency, flexibility (as the insurance is charged as a monthly subscription), and superior customer service is clearly resonating well with consumers! To date, the Leocare app has been downloaded 160k times and is trending on the French app store, growing 40% month over month and having now reached over 10,000 French households. Impressively, the company continues to earn its customer love and loyalty with increasing customers choosing to buy a second or even third policy line from Leocare.

Christophe and Noureddine won’t rest on their laurels though. They have an ambitious plan to continue improving and evolving their product and service. The roadmap includes exciting plans such as:

  • Developing a bot to automate and facilitate the management of claims, and keep Leocare customers informed in real-time of the processing of their claims, via push notifications and a dedicated timeline in the app
  • TakeCare — a brand new road safety service for car insurance customers
  • An in-app marketplace to connect customers with licensed and vetted professionals to help with home and car maintenance and repair

Where most insurers hardly know their customers at all, Leocare is building its brand on the trust of customers who love the service and winning that customer love by putting them first. We are thrilled to be partnering with the team today (alongside our friends at Ventech and Daphni) and look forward to the journey ahead!

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AnaCap makes growth investment in leading German insurance broker MRH Trowe

Anacap

AnaCap Financial Partners (“AnaCap”), a leading financial services specialist mid-market private equity investor, today announces a significant growth investment into MRH Trowe (“MRHT”), an owner managed top-10 commercial lines insurance broker in Germany.

AnaCap will join the MRHT management team as a strategic growth partner with management remaining as the largest shareholder group in the company. The investment will enable the acceleration of an acquisitions pipeline alongside investment in talent, data management and the application of technology.

This transaction allows management to remain as long-term committed shareholders of the group while continuing to build a leading, German commercial lines insurance broker, supported by AnaCap as collaborative investment partners.

The deal follows AnaCap’s successful growth partnership with the management founders of heidelpay, a German payments company which was successfully sold to KKR last year.

MRH Trowe is one of the ten largest German industrial brokers. In addition to MRH Trowe Insurance Brokers GmbH, several specialist service providers for various segments operate under the umbrella of Mesterheide Rockel Hirz Trowe AG Holding. MRHT offers extensive expertise in practically all insurance lines for industrial and commercial customers as well as affluent private customers. The owner-managed company continues to pursue a consistent growth trajectory with a holistic advisory offer, specialised teams and a strong focus on digitisation at the interface of clients, brokers and insurers.

470 MRHT employees manage a premium volume of more than €300 million and helped to generate around €60 million of run-rate revenues in 2020. This represents an average annual growth rate of more than 20%, organically and inorganically, since 2017.

MRHT distributes its product offering through a strong network across 12 German cities nationwide and also has exclusive partnerships with more than 100 German savings banks.

As a specialist financial services investor, AnaCap will bring both capital and operational expertise to accelerate MRHT’s impressive growth through further acquisitions in the large and highly fragmented German commercial lines insurance broking market.

AnaCap will also support MRHT’s digitisation strategy, aiming to further develop their hybrid distribution model of tailored personal insurance broking as well as digital and online customer portals, claims settlement, reporting and cross-selling among other service offerings.

Ralph Rockel, Co-Founder of MRH Trowe, commented: “We are enormously excited about partnering with AnaCap for the next stage of our journey.  AnaCap has significant experience in the insurance market as well as a proven track record in building leading businesses both organically and through acquisition in the DACH region.  In addition, their expertise in the application of enabling technology will help us continue to gain market share and margins. We look forward to a dynamic outlook together.”

Tassilo Arnhold, Partner at AnaCap, commented: “The longer-term outlook for the insurance broking market in the DACH region is compelling. Our strategy is to partner with an excellent management team and to bring our experience of growth execution, as well as technological innovation in the insurance sector more generally, to support this outstanding growth opportunity. We anticipate working in tandem with the MRHT team over the coming years to accelerate a successful buy-and-build strategy in this attractive market.”

The investment was made from AnaCap Financial Partners III, L.P and financial details and terms of the transaction were not disclosed.

Jan 06 2021

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IK Investment Partners, Bertrand Liber and LSA’s management enter exclusive discussions with BlackFin to support the insurance broker in its next chapter of growth

ik-investment-partners

IK Investment Partners (“IK”) is pleased to announce that the IK Small Cap II Fund has entered exclusive discussions to acquire a majority stake in LSA (“LSA” or “the Company”) from BlackFin Capital Partners (“Blackfin”). ISAI will be joining IK by acquiring a minority stake, alongside LSA’s CEO, Bertrand Liber and management. Financial terms of the transaction are not disclosed.

Founded in 1970, LSA is a leading online insurance brokerage platform providing Property & Casualty (P&C) cover for individuals and small businesses in France. The Company specialises in automotive insurance products for non-standard risks, leveraging the prominence of its main brand Assurpeople.com and its fully digital customer experience. LSA covers the whole value chain of insurance products, including acquisition, subscription, contract and claim management through its proprietary IT platform.

Over recent years, LSA has diversified its offering, notably towards animal health insurance with the brand Fidanimo, and more recently by launching Airbag, a wholesale broker specialised in decennial civil liability insurance products for construction professionals. LSA is led by Bertrand Liber, who joined the Company in 2008 and became CEO in 2015. The Company currently employs 135 people based in its headquarters in Rueil-Malmaison and manages over 180,000 contracts in close partnership with leading insurance companies operating in France.

The transaction represents the 15th investment from IK’s €550 million Small Cap II Fund, raised in 2018.

Bertrand Liber, CEO of LSA said:“The LSA team and I are delighted to be partnering with IK, a leading private equity firm in Europe. The team brings impressive credentials in the insurance brokerage sector and has significant experience in helping companies like LSA scale up and grow while ISAI will be the perfect partner to leverage our tech-positioning. I sincerely would like to thank everyone at BlackFin for their help over the last five years in supporting the change of scale and the diversification strategy.”

Arnaud Bosc, Partner at IK and advisor to the IK Small Cap II Fund said:“We have been impressed by LSA’s remarkable track record of growth and the quality of the management team. Having carved a profitable segment of non-standard automotive risks, the Company stands to benefit by applying its digital model to other underserved segments of the market. We look forward to working with Bertrand to develop a platform for further growth.”

Christophe Poupinel, Partner at ISAI said:“LSA perfectly matches the investment strategy of our fund ISAI Expansion: an InsurTech with a dynamic growth, a recognised expertise and a strong focus on digital. We are delighted to work with IK and look forward to supporting the business in its next chapter of growth.”

Bruno Rostain, Partner at BlackFin said:“We have had a fantastic journey with LSA over the last five years and sincerely enjoyed working with Bertrand. Now is the right time for a new partner to come on board and we wish LSA every success in working with IK.”

Parties involved in the transaction:

IK Investment Partners: Arnaud Bosc, Pierre Gallix, Caroline Le Hen, Thierry Aoun, Pauline Lloret
ISAI: Christophe Poupinel, Nicolas Martineau , Antoine Lacour
Legal Advisor: Willkie Farr & Gallagher (Eduardo Fernandez, Hugo Nocerino, Ralph Unger)
Financial / Legal / Tax / Social BDD: PwC (Céline Appel, Marc-Olivier Roux, Yannick Olivier, Bernard Borrely)
Financing: Goldman Sachs Private Capital (Camille de Lamotte, Pierre Grandjean)
Management: LSA (Bertrand Liber, Julie Leveillé-Nizerolle, Henri Lavaure, Anthony Derien, Ludovic Saint-Laurens, Nicolas de Soubeyran, Hervé Lahogue, Laurent Cathalan)
BlackFin: Bruno Rostain, Sabine Mathis, Julien Renaud
M&A Advisor Seller: Rothschild Transaction R (Pierre Sader, Philippe de Montreynaud, Julien Fauconnier, Hadrien Lerouge)
Legal Advisor Seller: Gide (Pierre Karpik, Louis Oudot de Dainville)
Legal Advisor Management: Lerins & BCW (Laurent Julienne, Yohann-David Saadoun)
Tax Advisor Management: Delaby & Dorison (Emmanuel Delaby, Clément Martin)
Financial VDD: Grant Thornton (Emmanuel Riou, Tanguy Guilbaud, Nicolas Salle, Jules Bourdin)

For further questions, please contact:

IK Investment Partners

Maitland/AMO
James McFarlane
Phone: +44 (0) 7584 142 665
jmcfarlane@maitland.co.uk

About IK Investment Partners

IK Investment Partners (“IK”) is a Pan-European private equity firm focused on investments in the Benelux, DACH, France, Nordics and the UK. Since 1989, IK has raised more than €13 billion of capital and invested in over 140 European companies. IK supports companies with strong underlying potential, partnering with management teams and investors to create robust, well-positioned businesses with excellent long-term prospects. For more information, visit www.ikinvest.com

About ISAI

Launched in 2010, ISAI Gestion is the French Tech entrepreneurs’ fund gathering more than 300 entrepreneurs across the world. ISAI, authorized by French regulator AMF, can fund and support high potential companies at early stages (venture capital, €150k to €3M initial tickets with ability for follow-on rounds) or at more mature stages (growth equity/LBO, €5M to €30M investments). Follow ISAI at www.isai.vc

About Blackfin

BlackFin is a sector-focused private equity manager, specialized in Financial Services across Europe. The firm’s investment strategy focuses on asset-light businesses in the financial services sector such as payments, independent financial advisors, wealth and asset management, insurance and credit brokerage, business process outsourcing or administration, capital markets and financial technology. BlackFin Capital Partners is a fully independent firm, founded in 2009 by four partners with a demonstrated track record as managers and entrepreneurs in the financial industry. The operational DNA of the firm stems from this experience. Altogether the team consists of 30 experienced professionals operating out of three offices in Paris, Brussels and Frankfurt. BlackFin manages in excess of €1.8bn, across three sector-focused buyout funds, and a VC fund dedicated to Fintech investments. For more information visit www.blackfincp.com

About LSA

Established in 1970, LSA Courtage is a leading online insurance brokerage platform specializing in P&C products in France for individuals and small corporates, which are distributed under its own brands or under white label. The company’s 135 employees work in support of the largest insurers in the French market with extensive underwriting and management capacities. LSA distinguishes itself by its particularly strong position in underserviced areas of the market as well as its use of new technologies in insurance distribution and management. For more information visit www.lsa-courtage.com

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Fairfax announces sale of Riverstone Europe to CVC Strategic Opportunities II

02 Dec 2020

OMERS has also agreed to sell all of its interests in RiverStone Europe as part of the transaction

Fairfax Financial Holdings Limited (“Fairfax”) (TSX: FFH and FFH.U) announces that it has entered into a binding agreement with CVC Capital Partners (“CVC”) to sell all of its interests in RiverStone Europe to CVC Strategic Opportunities Fund II. OMERS, the pension plan for Ontario’s municipal employees, has also agreed to sell all of its interests in RiverStone Europe as part of the transaction.

The purchase price to be received by Fairfax on closing of the transaction is approximately US$750 million. Fairfax will also be entitled to receive up to US$235.7 million post-closing under a contingent value instrument. Luke Tanzer will remain the Managing Director of RiverStone Europe and Nick Bentley, the Chief Executive Officer of the RiverStone Group, will remain on the board of RiverStone Europe post-closing.

After closing, RiverStone Europe will also operate under the name RiverStone International and will seek to continue its successful track record of acquisitions and growth led by its existing management team.

“We are very pleased to enter into this transaction with CVC,” said Prem Watsa, Chairman and Chief Executive Officer of Fairfax. “RiverStone Europe is an industry leader in run-off insurance services, and CVC’s scale and vision will give RiverStone Europe, under the continued leadership of Luke and his management team, the opportunity to further grow the business. Nick and Luke are also fully supportive of this transaction, based on their strong beliefs that it was the best way for RiverStone Europe to continue to grow and pursue run-off transactions. We wish Luke and all of the employees at Riverstone Europe much success in the future. Fairfax remains committed to continuing to grow its other European businesses, including its Lloyd’s of London activities.”

“I am extremely happy to partner with CVC in this next chapter of our development,” said Luke Tanzer, Managing Director of RiverStone Europe. “This transaction will provide us with a runway for further growth as we continue to offer the most trusted and effective run-off solutions in the insurance market. We look forward to joining the CVC family and benefitting from their deep experience of financial services, global network and long term pool of capital.”

“As one of the largest global consolidators of non-life run-off insurance books, with a leading position in the UK and Lloyd’s market, embedded cash flows and a predictable financial profile, RiverStone Europe is ideally suited to CVC’s Strategic Opportunities platform, which specializes in backing established businesses in stable markets that have long term growth ambitions,” said Peter Rutland, Managing Partner and Head of Financial Services at CVC. “We have got to know RiverStone and Fairfax over many years, and are delighted to now have the opportunity to work with Luke Tanzer and his experienced team.”

The transaction is subject to customary closing conditions, including various regulatory approvals, and is expected to close in early 2021.

Fairfax is a holding company which, through its subsidiaries, is engaged in property and casualty insurance and reinsurance and the associated investment management.

CVC is making this acquisition through Strategic Opportunities Fund II, a vehicle designed to invest in high-quality businesses that are suited to longer hold investment horizons.

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CBPE to realise its investment in Compre Group

CBPE

CBPE Capital LLP (“CBPE”) is pleased to announce that it has exchanged contracts on the sale of Compre Group (“Compre”) to Cinven and British Columbia Investment Management Corporation (“BCI”).  The sale is expected to complete in 2021, following the receipt of regulatory approvals.

Terms of the transaction have not been disclosed.

Compre is a leading insurance specialist with over 30 years of experience in the acquisition and management of discontinued and legacy non-life insurance and reinsurance portfolios. The business manages a wide range of insurance classes, from marine through to motor, with operations in Finland, Germany, Malta, Switzerland, Bermuda and the UK.

CBPE invested in Compre in 2015 at a time when the introduction of Solvency II regulations was fuelling an associated increase in the demand for legacy services.  Since investing, CBPE has supported the development of a multi-jurisdictional platform with an efficient approach to originating and executing acquisitions and a highly professional approach to claims management. This has included a comprehensive restructuring of the Group’s regional European insurance carrier structure to improve capital efficiency. CBPE has also proactively enhanced the senior management team with the introduction of several new and experienced Board members.

Under CBPE ownership, Compre was able to complete and integrate 21 acquisitions over five years resulting in a fourfold increase in Net Tangible Asset Value.

Will Bridger, CEO of Compre Group, said:

“The business has transformed during CBPE’s investment period and, as an investor, they have encouraged and supported us in realising our growth ambitions and in expanding into new juristictions and new insurance markets. We now have the foundations for significant future growth.”

Mathew Hutchinson and Richard Thompson, Partners at CBPE, said:

“We have enjoyed working with a great management team at Compre. The past five years have seen the business develop and grow significantly, and we are incredibly proud of what has been achieved and the quality of the platform that we have built.”

Following the completion of the sale of Compre, CBPE will have realised 11 of the 13 investments in CBPE Capital Fund VIII generating a 2.5x multiple of invested capital.

The exit continues CBPE’s strong track record of investing in the financial services sector.  The realisation of Compre follows the earlier sucessful exits of Xafinity and JTC from Fund VIII.  Current investments in the financial services sector include Centralis Group and Perspective Financial Group.

CBPE’s investment in Compre Group was led by Mathew Hutchinson and Richard Thompson with support from Harry Hewlett.

CBPE and the shareholders were advised by Canaccord Genuity (corporate finance), Reed Smith (legal), PwC (Financial and commercial diligence), EY (actuarial diligence) and DLA Piper (legal diligence).

Management were advised by Liberty Corporate Finance (equity terms), DLA Piper (legal) and Capstar (communications).


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Cinven and BCI to acquire Compre

Cinven

Cinven, an international private equity firm, and British Columbia Investment Management Corporation (“BCI”), one of Canada’s largest institutional investors, today announce that they have reached an agreement to acquire Compre, a specialist global consolidator of closed books of non-life insurance policies, from CBPE Capital LLP. Financial details of the transaction are not disclosed.

Compre is focused on the acquisition and management of discontinued (also known as ‘run-off’) non- life insurance portfolios and has operations in the UK, Bermuda, Finland, Germany, Malta and Switzerland. The global non-life insurance run-off market is growing steadily, driven by insurers’ increasing focus on balance sheet optimisation, capital efficiency and disposals of non-core business lines. Compre has a proven track record of acquiring portfolios from major institutions including Allianz, Generali, HSBC and Swiss Re. Founded in 1991, Compre employs c. 80 people at its offices in the UK, Continental Europe, and Bermuda.

Cinven and BCI believe that Compre is an attractive investment opportunity based on:

  • Compre’s high-quality, cash and capital-generative business model, that delivers highly predictable long-term profits, with significant downside protection;
  • Its strong and established market position in the European non-life insurance legacy market and, more recently, its growing market position in the US market through its Bermuda platform, with further ambitions to enter the Lloyd’s market going forward;
  • Its track record of acquiring and managing non-life legacy businesses over more than 30 years, comprising 11 company acquisitions and 39 portfolio transactions across various jurisdictions across Continental Europe, the UK and the US;
  • Its proven financial track record of steady and consistent growth in recent years, delivering robust performance through the COVID-19 pandemic and prior downturns;
  • The significant opportunity to capitalise on the increasing demand for legacy solutions and offer its products to a broader range of international clients; and
  • An exceptional management and leadership team, led by CEO, Will Bridger, with significant expertise across its specialist areas.

The Compre transaction represents the second investment from Cinven’s new financial services sector-focused strategy, which will be focused on similar long-term investment opportunities across Europe.

Cinven Funds’ previous investments in the European insurance sector include Guardian Financial Services in the UK; Eurovita in Italy; and Viridium in Germany. Cinven recently announced an agreement to acquire Miller, a specialist insurance broker. Other financial services investments by the Cinven Funds include Partnership Assurance, NewDay, Avolon and Premium Credit.

BCI has made a number of investments in financial services companies, including Hayfin Capital Management, Verifone, and BMS Group.

Luigi Sbrozzi, Partner of Cinven, commented:

“Cinven is delighted to be investing in Compre alongside BCI. Over the last 30 years Compre has built a proven platform in the highly specialised insurance and reinsurance run-off market, and a reputation amongst its clients for consistently creating and realising value. Compre is extremely well placed to access new growth markets, such as the US and Lloyd’s, and to broaden its client offering further. We look forward to working with Compre’s management team to deliver these growth opportunities, drawing on the deep expertise of the Cinven team in the insurance sector.”

Jim Pittman, Executive Vice President & Global Head, Private Equity, BCI, said:

“We are impressed by the quality of the platform built by Will Bridger and his team and are excited to partner alongside Cinven to support the continued growth of the business. BCI’s investment in Compre follows as a result of our proactive, sector focused origination strategy and relationship building efforts with the company. We look forward to supporting Compre in its development and in turn providing attractive and stable long-term risk-adjusted returns for our pension plan and insurance fund clients.”

Will Bridger, CEO, Compre, added:

“We are also delighted to be partnering with Cinven and BCI as we embark upon our next phase of growth. This has been a historic year for Compre. We completed our first US transaction, launched our Bermudian reinsurer and now, subject to regulatory approval, have new shareholders supporting further growth of the business. This was made possible through the commitment of everyone at Compre and our drive and determination for what we do. The legacy market is on an exciting trajectory and, together with our new shareholders, we will be best placed to deliver the ambitious plan we have for Compre.”

The transaction is expected to complete in Q2 2021 and is subject to regulatory approvals.

Cinven and BCI advisors included: Macquarie Capital (M&A); Allen & Overy and Latham & Watkins (Legal); PwC (Commercial, Financial, Actuarial, Operations, IT); FTI Consulting (Actuarial, Operations, IT, Communications); Deloitte (Tax, Structuring) and Marsh (Insurance).

Management advisers were Liberty Corporate Finance (Financial Advisor) and DLA Piper (Legal and Tax).

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Japan’s Mitsui Sumitomo to invest $350 million in insurance startup Hippo

Horizons Ventures

NEW YORK (Reuters) – Mitsui Sumitomo Insurance Company, a subsidiary of Japan’s MS&AD Insurance Group, will invest $350 million in U.S. home insurance technology company Hippo Enterprises to fund its next stage of growth, the companies said in a joint statement on Tuesday.

Mitsui bought a convertible note in Hippo that will turn into an equity stake the next time it raises new funds, Hippo Chief Executive Officer Assaf Wand told Reuters in an interview.

MS&AD’s venture arm was part of Hippo’s Series E funding round that was announced in July, and the new investment – which is accompanied by a plan to sign a reinsurance agreement with Mitsui Sumitomo – builds on that partnership.

Hippo was valued at $1.5 billion in July, although Wand noted this figure was now outdated because of market developments and the growth of the business. He declined to disclose an updated valuation.

“We have been very thoughtful on the people that we’ve bought into the capital structure and how can they help us build the biggest franchise,” said Wand.

Insurance technology startups such as Hippo have been growing rapidly in the pandemic as more consumers seek quotes and policies remotely.

Investors have funneled billions of dollars into the public offerings for Lemonade Inc, Root Inc and SelectQuote Inc this year, at significantly higher valuations than traditional insurance companies.

Asked if Hippo could become a publicly traded company in 2021, raise new funds from private investors or seek a sale, Wand said the company was evaluating all these options.

The Mitsui Sumitomo investment will allow Hippo to continue growing its product range and expand in new U.S. markets. Hippo aims to be able to offer services to about 95% of the U.S. population in the next year, Wand said.

Hippo’s other investors include Comcast Ventures, and technology-focused investment firms Dragoneer and BOND.

(Reporting by David French in New York; Editing by Rashmi Aich)

New insurance group Inigo launches with c.$800 million and appoints Sir Howard Davies as Chairman ahead of commencing underwriting on 1 January 2021

Cdpq

Private Equity London,
share

 
  • Secures significant funding from blue chip institutional consortium of investors
  • Led by Richard Watson, former Chief Underwriting Officer of Hiscox, and a team of senior insurance professionals
  • Acquiring certain StarStone Lloyd’s assets, including its managing agency, as a platform to commence underwriting in 2021
  • Targeting a number of underserved sectors of the London Insurance and Reinsurance market
Inigo Limited (Inigo), a new insurance group, announces that it has successfully completed a capital raise of approximately $800 million from a consortium of global investors comprising (amongst others) funds controlled by Caisse de dépôt et placement du Québec (CDPQ), Enstar, J.C. Flowers & Co., Oak Hill Advisors, Qatar Investment Authority, Stone Point and Inigo’s management team. The funds give Inigo the capital base required to proceed with its plans to open for business in the 2021 year of account, subject to approvals from the Corporation of Lloyd’s.

Inigo is being founded by Richard Watson, former Chief Underwriting Officer of Hiscox who stepped down from the group last year after 33 years, along with Russell Merrett, former Managing Director of Hiscox London Market, and Stuart Bridges, former Chief Financial Officer of both Hiscox and ICAP.

Sir Howard Davies, Chairman of NatWest Group, has been appointed as Chairman. Sir Howard has a distinguished career in the City, business and government; he was Chairman of the Financial Services Authority from 1997 until 2003, Director of the London School of Economics from 2003 until 2011, and Chairman of Phoenix Group from 2012 until 2015.

As part of its preparations, Inigo also announces that it has signed an agreement to acquire certain insurance underwriting assets of StarStone Underwriting Ltd including its Lloyd’s Syndicate 1301 and its managing agency, from Enstar Group, subject to regulatory approvals. These are intended to form the foundation for Inigo’s operations as a specialty insurer, writing a streamlined portfolio of insurance and reinsurance risks. No legacy underwriting will be transferred to Inigo.

Inigo believes that current conditions are ideal to launch a new insurance business, at a time when demand across a number of classes of insurance and reinsurance is high. Inigo has chosen London as its principal base since it regards the overall insurance ecosystem offered by Lloyd’s as exceptionally attractive and believes it will best support the growth and development of the new syndicate.

Richard Watson said: “This significant capital raising, together with our acquisition, gives us the platform we need to turn Inigo from a concept into reality. We believe that 2021 will mark the beginning of an exciting growth phase for Lloyd’s and the London Insurance Market and Inigo will contribute to growing the specialty and reinsurance marketplace, as it returns to profitability. Sir Howard Davies joining our board validates our vision for Inigo and our determination to provide credible additional capacity and services to customers and brokers.

We are fully supportive of the direction that John Neal, Lloyd’s CEO, is taking the market, making it a more attractive and efficient place in which to trade. For a company like ours, entirely focused on underwriting, London also has the depth of young talent we need to develop the analytical and data-led approach that is at the core of what we hope to do.”

Inigo was advised on the transaction by Evercore, Guy Carpenter Securities and Clifford Chance.

About Inigo

Inigo is a specialty insurance and reinsurance business that will operate in the Lloyd’s of London market. The business is led by Richard Watson, Stuart Bridges and Russell Merrett bringing together a collective experience in excess of 80 years in the industry in aggregate.
www.inigoinsurance.com

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Intact to acquire RSA’s Canada, UK and international operations with CDPQ’s support

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Intact Financial Corporation will invest $1.5 billion in technology in Quebec over five years

Intact Financial Corporation (TSX: IFC) today announced that, together with Tryg A/S (Tryg), it has reached an agreement for the acquisition of RSA Insurance Group plc (RSA). Pursuant to the transaction, IFC will, with the support of Caisse de dépôt et placement du Québec (CDPQ), acquire RSA Group’s Canada, UK and International operations and co-own RSA Group’s Danish business with Tryg. To support its customer driven digital strategy and the growth resulting from the acquisition and integration of these operations, IFC will invest $1.5 billion in technology in Quebec over the next five years. This acquisition will also significantly increase the role and influence of several strategic teams based in Quebec, consolidate IFC’s significant economic impact in the province, and increase that impact through these additional investments.

“Intact Financial Corporation has its roots in Quebec,” said Charles Brindamour, CEO of Intact Financial Corporation. “While our success now extends well beyond Quebec’s borders, we still run a significant portion of our North American operations there. With the support of CDPQ, our acquisition of RSA will create additional demands and opportunities for the teams supporting our global operations; coupled with our future tech investments, this will provide a significant and lasting boost to the expansion of our strategic teams based in Quebec.”

“We’ve been partners with Intact Financial Corporation for over 10 years,” said Charles Emond, President and CEO, CDPQ. “Our investment has yielded positive returns for our depositors, thanks to the company’s strong track record of successfully integrating the companies they have acquired. We’re delighted to support this new acquisition, which will provide new growth opportunities for IFC, strengthen its leading position in Canada, and have a significant impact in Quebec’s financial and technology sectors.”

Additional investments in cutting-edge tech sectors

IFC’s growth is based on a long tradition of innovation and investments in technology that will accelerate with the acquisition of RSA. IFC will invest $1.5 billion over the next five years to support and grow the work of its digital, tech and AI development labs and software engineering teams. These Quebec-based teams will expand their scope and responsibilities as a result of the company’s growth and international operations, and to do this they will be hiring new talent. Over the next five years, more than 1,500 Quebec experts in user experience, design, mobile and software engineering, cybermetrics, machine learning and AI will work on developing and improving the digital customer experience, in addition to using technology to improve the efficiency of the company’s global operations.

Quebec talent driving growth for Intact and the Quebec economy

A number of IFC’s core operations are based in and directed from Quebec. The company has major teams that not only serve Quebecers, but also the rest of Canada and divisions across North America. Most of these teams will see their operations expand as the company’s international growth creates additional demands.

This includes the Intact Investment Management team, which will lead the company’s global investment operations and see its assets under management grow from $20 billion to $40 billion.

These expanded responsibilities for the Quebec-based teams will also enable IFC to act as a talent accelerator by providing even more high-calibre job opportunities for the next generation of Quebec university graduates, particularly in the actuarial, finance, technology and AI sectors.

IFC: A major employer rooted in the local economy

Since its beginnings in Quebec in 1907 (for the legacy company of Intact Insurance) and 1955 (for belairdirect), IFC has continued to grow steadily across the province in terms of its number of employees, investment, market share and community engagement.

IFC in Quebec today:

  • Over 5,000 employees in its Montreal, Anjou, Québec and Saint-Hyacinthe offices
  • Nearly one in three Quebecers and nearly one in four companies are insured through our Intact Insurance and belairdirect banners
  • More than 530 property and casualty insurance broker partners of all sizes located across Quebec
  • $1.6 billion in claim payments to Quebec customers, contributing to the province’s economic vitality by mobilizing the home restoration and renovation and automotive repair industries
  • Collaboration with several major Quebec universities, including Université Laval, Polytechnique, Université de Sherbrooke, ETS and and the Institut de valorisation des données (IVADO), a collaboration between HEC Montréal, Polytechnique Montréal and Université de Montréal.

About Intact Financial Corporation

Intact Financial Corporation (TSX: IFC) is the largest provider of property and casualty (P&C) insurance in Canada and a leading provider of specialty insurance in North America, with over CAD$11 billion in total annual premiums. The Company has approximately 16,000 employees who serve more than five million personal, business and public sector clients through offices in Canada and the U.S.

In Canada, Intact distributes insurance under the Intact Insurance brand through a wide network of brokers, including its wholly-owned subsidiary BrokerLink, and directly to consumers through belairdirect. Frank Cowan Company, a leading MGA, distributes public entity insurance programs including risk and claims management services in Canada.

In the U.S., Intact Insurance Specialty Solutions provides a range of specialty insurance products and services through independent agencies, regional and national brokers, and wholesalers and managing general agencies. Products are underwritten by the insurance company subsidiaries of Intact Insurance Group USA, LLC.

About CDPQ

Caisse de dépôt et placement du Québec (CDPQ) is a long-term institutional investor that manages funds primarily for public and para-public pension and insurance plans. As at June 30, 2020, it held CA$333.0 billion in net assets. As one of Canada’s leading institutional fund managers, CDPQ invests globally in major financial markets, private equity, infrastructure, real estate and private debt. For more information, visit www.cdpq.com, follow us on Twitter @LaCDPQ or consult our Facebook or LinkedIn pages.

Cautionary note about forward-looking statements

Certain of the statements included in this press release constitute forward-looking statements. They include statements relating to, among other things, IFC’s offer to acquire RSA, its integration and growth plans, and its investment and hiring intentions in Quebec and in the digital, technology, AI development and software engineering sectors over the next five years. Forward looking statements often use words such as “believe”, “expect”, “estimate”, “intend”, “anticipate” and words of a similar meaning. Although the forward-looking statements are based upon what management believes to be reasonable assumptions, IFC cannot assure investors that actual results will be consistent with these forward-looking statements. Investors should not rely on forward-looking statements to make decisions, as they are subject to risks and uncertainties about IFC and are dependent on many factors, some of which are outside of IFC’s control. Investors should ensure the preceding information is carefully considered when reviewing forward-looking statements contained herein. The Company and management have no intention and undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

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