By Chibuike Oguh
Could 9 (Reuters) – Non-public equity firm Carlyle Team Inc CG.O told Reuters on Monday it has agreed to get U.S. specialty insurance plan company NSM Insurance Group from White Mountains Coverage Team Ltd WTM.N for $1.78 billion in funds.
Carlyle explained the deal is predicted to shut in the next 50 % of this year. The transaction is expected to add $280 for every share to White Mountains’ modified guide worth.
Pennsylvania-primarily based NSM Insurance policies is a single of the largest unbiased insurance policies brokerages that underwrites guidelines for animals, non-gain companies, workers’ payment, vans and behavioral healthcare. It generates far more than $1 billion in premiums from extra than one million consumers, according to its internet site.
“We will search to make investments back again into the platform a bit additional closely and ramp up M&A action,” James Burr, a Carlyle running director, reported in an interview. “There’s a ton of wide house in company-to-buyer and increasing technological know-how.”
Personal equity corporations have been driving consolidation in the insurance plan brokerage sector. Mergers and acquisitions in the insurance policy sector extra than doubled in quantity to a full of $58 billion in 2021 from $22 billion a 12 months previously, according to consulting business Deloitte.
In 2021, Carlyle marketed its bulk stake in London-based mostly insurance plan brokerage PIB Team to private equity agency Apax Team for a undisclosed quantity.
Carlyle has invested extra than $10 billion in the financial solutions place, such as payroll providers supplier BenefitMall, U.S. insurance plan claims agency Sedgwick Claims Administration Products and services and China’s Ant Group.
(Reporting by Chibuike Oguh in New York Modifying by Greg Roumeliotis and Will Dunham)
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