The Navigators Group has entered an agreement to purchase all the shares of Belgian specialty insurer Assurances Continentales — Continentale Verzekeringen NV (ASCO) and Bracht, Deckers & Mackelbert NV (BDM) – a move that will grow the firm’s European presence.
Navigators has proposed to pay EUR 35 million in cash for ASCO and BDM at the closing of the transaction – which is expected in the first half of 2018.
ASCO is a specialty marine property and casualty insurer; BDM is an insurance underwriting agency that underwrites risk coverage in niche markets on behalf of ASCO and a number of major international insurers.
Stanley Galanski, President and Chief Executive Officer of Navigators, said; “we are delighted to announce the proposed acquisition of ASCO and BDM.
“Europe is an important market to us today and vital to our international growth strategy — this transaction is an important step to enhancing our presence in and relevance to this dynamic market.
“BDM has a strong reputation, a rich history and a well-established culture of underwriting expertise that mirrors our own. Together with ASCO, they provide Navigators with a scalable platform to support our product lines and geographic expansion across continental Europe.
“We intend to combine our existing European underwriting operations with those of BDM, with Antwerp serving as the hub for continental Europe after the closing of the transaction. We believe the combination provides a wonderful opportunity for the employees and significantly enhances the growth potential of both organizations.”
Navigators also announced plans to acquire all Canal Re SA shares – a Luxembourg reinsurance company that is a wholly-owned subsidiary of ASCO – the proposed acquisition is part of Navigators’ strategy of expanding its specialty insurance throughout Europe.
The acquisition reinforces Navigators’ presence in the European Union’s single market, and also provides opportunity for BDM and ASCO to take their well-established expertise to a wider European audience.