EU regulator the European Commission has approved the acquisition of re/insurance broker Miller by global private equity firm, Cinven, and GIC, Singapore’s sovereign wealth fund.
First announced in November 2020, the EC has now given the green light to the acquisition following a review.
It concluded that the deal would raise no competition concerns because of the limited market position of Miller in the European Economic Area.
Miller is active in the provision of non-life insurance and reinsurance broking services and is seen by Cinven and GIC see Miller as an attractive investment opportunity based on numerous factors.
These includes Miller’s high-quality, cash-generative business model, with strong brand equity; its solid position in the wholesale insurance markets with a long-standing client base, strong management team and deep pool of talent with significant expertise; and also Miller’s proven track record of steady and consistent growth in recent years, including its robust performance through COVID-19.
Additionally, Cinven and GIC believe that the business has an opportunity to benefit significantly from independent ownership, highlighting the ability to accelerate its long-term growth profile through both organic growth in a specialist arena, its ambitious recruitment plans, and selective incremental bolt-on M&A in the future.
The pair also view Miller as an attractive investment because of the expectation that the underlying insurance market is projected to keep growing in-line with GDP, with potential for additional upside for specialty carriers, further supported by short-term rate hardening.
Cinven plans to carry out the acquisition through its Guernsey based subsidiary, Cinven Capital Management (SSF) General Partner Limited of Guernsey.
GIC, meanwhile, will use its investment vehicle Raffles Private Holdings Limited of the UK.