Howden Group Holdings is set to enhance the scale and depth of its reinsurance and capital markets offering with the acquisition of broker, TigerRisk Partners.
The deal, which remains subject to regulatory approvals, represents almost $400 million of combined reinsurance revenues and provides clients with access to 450 experts across over 30 offices.
Howden states that the transaction “creates the much-needed fourth global player in the reinsurance market,” and builds on its global integrated approach and ongoing commitment to deliver greater choice for clients and act as the “natural long-term home for talent in the market.”
According to the buyer, the deal further consolidates Howden’s position as a global re/insurance intermediary, creating a $30 billion gross written premium business with an enterprise value of more than $13 billion, employing a huge 12,000 people across 45 countries.
It’s expected that Howden Re’s global distribution network and data-driven reinsurance expertise in international specialty treat, facultative, and the managing general agent (MGA) sector will accelerate the growth potential of TigerRisk’s US-focused reinsurance, capital markets, advisory, and technology and analytics offering.
David Howden, Chief Executive Officer (CEO), Howden Group, commented: “TigerRisk has been the standout business and innovator in the reinsurance and capital markets space for many years and the decision to join forces with Howden is a unique opportunity and a game-changer for us and the industry. Importantly, its evolution mirrors our own journey; from a standing start it has empowered employees through ownership and by taking an entrepreneurial and client first approach, it has delivered phenomenal organic growth and become a genuine market challenger of the highest quality.
“Not only does the combination create an unrivalled digitally driven reinsurance and capital markets business underpinned by a complementary product offering and strong cultural fit, it brings full capability to our diversified and differentiated client offer, creating a fresh alternative of real scale for clients and talent. I am so excited about unlocking the potential of the two businesses and I can’t think of a better place for TigerRisk to continue its incredible long-term journey.”
For Howden, the acquisition of broker TigerRisk is a sign of its continued investment in the U.S., with a focus on MGA and reinsurance to support its existing retail, wholesale, and MGA clients. Additionally, the transaction follows its recent move to buy DUAL in the U.S. via the acquisition of Align Financial Holdings.
This latest transaction is backed by Howden’s long-term investors, including General Atlantic, CDPQ, and HG.
Following the deal, Rod Fox, Executive Chairman and Co-Founder of TigerRisk, will become Executive Chair of Howden Tiger.
“All I can say is ‘Wow!’ This combination is transformational – we will become the difference the market is looking for,” said Fox. “The combined entities will have the culture, deep experience and the scale to really benefit our clients and world- class team members. It is a fantastic opportunity that we have been able to make a reality. We have built TigerRisk from the ground up – and this combination allows us to take our global capabilities to the next level while maintaining our entrepreneurial and ‘can-do’ attitude.
“People want choice, and it is clear that as part of Howden Group all of our existing and future clients, as well as the experienced professionals looking to join our team, will benefit from our distinctively different approach. I was immediately impressed with David and his team’s boldness. Together, we will be very bold.”
Elliot Richardson, Chair, Howden Re, added: “I have been a big admirer of what TigerRisk has built and its achievements; the areas of the market in which it leads are incredibly complementary to our own strengths. The combination of our talent, expertise and distribution, underpinned by friendship and trust, means the solutions we can offer clients will be astonishing. Our ambition has always been to take a leading position in our chosen markets. This partnership immediately creates the global leader in Fac, Capital Markets, MGA, Analytics and Specialty Treaty – the pre-eminent reinsurance and capital markets provider for reinsurance buyers.”
Howden has entered into a definitive agreement to acquire TigerRisk from Flexpoint Ford. In 2020, TigerRisk secured a strategic investment from the private equity firm, and under the partnership, accelerated the recruitment of new talent to the platform and expanded their employee base by almost 50%, which led to a 25% annual growth in revenue.
Rob Bredahl, TigerRisk’s CEO, commented: “This transaction is an important milestone for TigerRisk and could not have been achieved without our employees’ dedication to delivering creative solutions and unrelenting focus on client service. Our relationship with Flexpoint Ford has been an important part of this journey and their deep understanding of our business and support in executing our growth strategy has made them an ideal partner.”
Chris Ackerman, Managing Partner of Flexpoint Ford, added: “On behalf of our investors, we are grateful for the partnership with TigerRisk and its employee shareholders during a time of accelerated growth for the company. The success of our partnership has allowed us to create significant value for all stakeholders of TigerRisk.”
Dominic Hood, Managing Director of Flexpoint Ford, said: “Investing across the insurance ecosystem is an important area of focus for Flexpoint Ford and our partnership with TigerRisk advanced our knowledge and experience in this important sector. We are thankful for the tireless efforts of the entire TigerRisk team during our partnership.”