Private equity firm Cinven and British Columbia Investment Management Corporation (BCI) have reached an agreement to purchase legacy acquirer, Compre, from existing shareholders CBPE Capital LLP, Hudson Structured Management Limited, and Compre’s management.
Following the transaction, Cinven and BCI will become majority shareholders alongside Compre’s management team, led by Chief Executive Officer (CEO) Will Bridger, and will provide the additional capital needed to meet the company’s ambitious growth plans.
Under the ownership of CBPE, Compre completed 21 transactions in 10 jurisdictions, including its first in the U.S., which ultimately enabled it to establish its Bermuda legacy platform.
Commenting on the deal with Cinven and BCI, Bridger said: “I am delighted to announce that Compre will be working with Cinven and BCI as our new majority shareholders to realise our ambitious plans for the future. Compre has a long history in the legacy market built on a client-centric approach that sets us apart. Our reputation for providing bespoke solutions to our clients and for delivering shareholder value has enabled us to establish a company with tremendous potential that I am privileged to lead. My thanks to the CBPE team for their support since 2015.
“In Cinven and BCI, we have partners that share our values and ethos, and our approach to achieving sustainable growth over the long-term. I very much look forward to working with them and leading Compre in what promises to be an exciting time for our business.”
As the global non-life insurance run-off market continues to grow at a steady pace, Cinven and BCI, one of Canada’s largest institutional investors, believe that Compre is an attractive investment opportunity based on the firm’s high-quality, cash and capital-generative business model; and its strong and established market position in Europe and, more recently, its expanding market position in the U.S., with further plans to enter the Lloyd’s market in the future.
Cinven and BCI also highlights the legacy acquirer’s track record of acquiring and managing non-life legacy business over more than three decades; its proven financial track record of steady and consistent growth in recent years; the huge opportunity to capitalise on the growing demand for legacy solutions; and an exceptional management and leadership team.
Cinven Fund’s previous investments in the European insurance segment include Guardian Financial Services in the UK; Eurovita in Italy; and Viridium in Germany.
Earlier this month, Cinven announced an agreement to acquire insurance brokerage, Miller.
Partner of Cinven, Luigi Sbrozzi, commented: “Cinven is delighted to be investing in Compre alongside BCI. Over the last 30 years Compre has built a proven platform in the highly specialised insurance and reinsurance run-off market, and a reputation amongst its clients for consistently creating and realising value. Compre is extremely well placed to access new growth markets, such as the US and Lloyd’s, and to broaden its client offering further. We look forward to working with Compre’s management team to deliver these growth opportunities, drawing on the deep expertise of the Cinven team in the insurance sector.”
BCI has previously made numerous investments in financial services firms, including Hayfin Capital Management, Verifone, and BMS Group.
Jim Pittman, Executive Vice President & Global Head, Private Equity, BCI, said: “We are impressed by the quality of the platform built by Will Bridger and his team and are excited to partner alongside Cinven to support the continued growth of the business. BCI’s investment in Compre follows as a result of our proactive, sector focused origination strategy and relationship building efforts with the company. We look forward to supporting Compre in its development and in turn providing attractive and stable long-term risk-adjusted returns for our pension plan and insurance fund clients.”
Bridger added: “This has been a historic year for Compre. We completed our first US transaction, launched our Bermudian reinsurer and now, subject to regulatory approval, have new shareholders supporting further growth of the business. This was made possible through the commitment of everyone at Compre and our drive and determination for what we do. The legacy market is on an exciting trajectory and, together with our new shareholders, we will be best placed to deliver the ambitious plan we have for Compre.”
Financial details of the deal have not been disclosed, with the transaction expected to close in the second-quarter of next year, subject to regulatory approvals.
