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CDPQ, OTPP invests $500m in Anurag Chandra’s new insurance platform

23rd October 2019 - Author: Charlie Wood

Former Chief Executive of Prosperity Life, Anurag Chandra, has secured $500 million in funding from Caisse de dépôt et placement du Québec (CDPQ) and the Ontario Teachers’ Pension Plan (OTPP) to launch Constellation Insurance Holdings, a platform set to focus on P&C and life insurer acquisitions and demutualizations.

handshakeChandra, who will serve as CEO and Chairman of Constellation, says the new platform will invest in stock and mutual insurers based in North America that are seeking growth capital, stronger ratings, scale efficiencies and equity incentives while maintaining their independent management structure, brand identity, operations and entrepreneurial culture.

Chandra stepped away from Prosperity earlier this year after a ten year stint at the firm.

This new partnership will see him join forces with two of the largest investors in North America, with CDPQ and Ontario Teachers currently managing over CA$500 billion in net assets.

“Constellation’s target market and value proposition are differentiated versus other insurance platforms that focus on either asset accumulation, legacy block reinsurance or have shorter term investment horizons, which incentivize substantial expense reductions and limit investments in organic new business growth,” Chandra added.

RMS

Stephane Etroy, executive vice-president and head of private equity at CDPQ, said this new partnership will provide a source of competitive advantage for Constellation.

“We look forward to working with insurers’ management teams to support their existing operations and to identify new avenues for growth,” she added.

Jane Rowe, Executive Managing Director, Equities, at Ontario Teachers’, added, “We are delighted to partner alongside CDPQ with Anurag Chandra, who has a distinctive and successful track record in the insurance sector including acquisitions, demutualizations, turnarounds and rehabilitations.

“As CEO of Prosperity, he built an attractive, high growth insurance platform that generated exceptional investor returns and favourable outcomes for all key stakeholders.”

“We expect this partnership with Constellation and CDPQ to create significant value for our stakeholders.”

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