Personal fairness agency Carlyle Group Inc. advised Reuters on Monday it has agreed to accumulate U.S. specialty insurance coverage supplier NSM Insurance coverage Group from White Mountains Insurance coverage Group Ltd WTM.N for $1.78 billion in money.
Carlyle mentioned the deal is anticipated to shut within the second half of this yr. The transaction is anticipated so as to add $280 per share to White Mountains’ adjusted guide worth.
Pennsylvania-based NSM Insurance coverage is among the largest impartial insurance coverage brokerages that underwrites insurance policies for pets, non-profit organizations, staff’ compensation, vans and behavioral healthcare. It generates greater than $1 billion in premiums from a couple of million purchasers, based on its web site.
“We’ll look to speculate again into the platform a bit extra closely and ramp up M&A exercise,” James Burr, a Carlyle managing director, mentioned in an interview. “There’s quite a lot of extensive house in business-to-customer and bettering expertise.”
Personal fairness corporations have been driving consolidation within the insurance coverage brokerage sector. Mergers and acquisitions within the insurance coverage sector greater than doubled in quantity to a complete of $58 billion in 2021 from $22 billion a yr earlier, based on consulting agency Deloitte.
In 2021, Carlyle bought its majority stake in London-based insurance coverage brokerage PIB Group to non-public fairness agency Apax Group for a undisclosed quantity.
Carlyle has invested greater than $10 billion within the monetary companies house, together with payroll companies supplier BenefitMall, U.S. insurance coverage claims agency Sedgwick Claims Administration Companies and China’s Ant Group.
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