French private equity firm Eurazeo has now completed its investment into global insurance and reinsurance broker BMS Group, which coincides with former PartnerRe Chief Executive Officer (CEO), Emmanuel Clarke, taking over as Chairman.
It was announced in December 2022 that up to 34% of BMS’ share capital was to be acquired by Eurazeo, which together with an investment in the broker of up to £355 million, valued BMS at £1.75 billion.
BMS says that the investment signals its commitment to further accelerating growth across its trading divisions, while at the same time enhancing its digital, analytics and modelling capabilities, and reinforcing its ability to deliver exceptional client solutions.
Since the deal was first announced, BMS’ growth has continued, and the broker says that 2023 is set to be another strong year with forecast revenues of £300 million and growth of 30% across its specialty, reinsurance, and international operations.
The specialty re/insurance broker has also made 10 acquisitions over the past 12 months, while staff numbers increased from around 400 to more than 1,200 globally.
The investment is expected to support the company as it strengthens its client focused propositions with the “attraction of further exceptional talent and through the ongoing M&A pipeline.”
BMS has also announced that effective September 28th, Clarke takes over from John Hastings-Bass as its new Chairman. He left PartnerRe in 2020 to pursue other opportunities and during his long career has held several board positions.
Hastings-Bass will remain with the firm as Chair of its UK and International operations. He chaired BMS for close to nine years and has worked in the insurance industry for over 35 years. BMS has highlighted the importance of Hastings-Bass’ experience in strengthening its existing operations as well as its expansion overseas.
“With the closure of this transaction, we move into 2024 on a wave of momentum with the capital required to further drive our vision of becoming the independent specialty insurance and reinsurance broker of choice.
“Our people are quite exceptional, and as we mark this critical juncture in BMS’ growth, I owe them a special thanks for their dedication and commitment to delivering extraordinary service to our clients,” said BMS Group CEO, Nick Cook.
“Our people are quite exceptional, and as we mark this critical juncture in BMS’ growth, I owe them a special thanks for their dedication and commitment to delivering extraordinary service to our clients.
“This significant investment not only brings new capital and resource to BMS but to our clients and the market as a whole. We will continue to bolster our reputation as the clear and natural home for entrepreneurial, client focused talent who want to be fully empowered and rewarded by an innovative and high-growth culture.
“I also welcome Emmanuel to BMS. His successful build out of PartnerRe’s global reinsurance business during his 25-year tenure alongside his experience with progressive, data, digital and technology driven financial models will immediately contribute to BMS. Similarly, I am delighted that John has agreed to stay with BMS. Under his chairmanship we have seen astonishing growth and I, along with all of BMS, thank him for his indispensable role in our success,” added Cook.
Maxime de Bentzmann, co-head mid-large buyout at Eurazeo, said: “Specialty insurance and reinsurance markets are long standing investment themes for Eurazeo’s mid-large buyout strategy. BMS’ entrepreneurial and meritocratic culture and international footprint align well with Eurazeo’s investment approach. Since signing, the business has continued on its impressive organic and inorganic growth trajectory on which we are committed to support Nick Cook and the management team.”
British Columbia Investment Management Corporation, Preservation Capital Partners (PCP), management and staff remain significant investors in the business, says BMS.
The broker was advised by Evercore, BMS Capital Advisory, and Macfarlanes LLP.
