Tag Archives: Insurance

Coalition Raises $175M to Build the Future of Commercial Insurance

General Atlantic

March 17, 2021

Coalition, a leading cyber insurance and security company, today announced it has raised $175 million to accelerate its rapid growth and global expansion. Index Ventures led the funding with participation from General Atlantic and the company’s existing investors, valuing Coalition at $1.75 billion.

“We founded Coalition four years ago with a mission to solve cyber risk, introducing a technology-led approach to risk management and insurance underwriting, pricing, and distribution,” said Joshua Motta, CEO and co-founder of Coalition. “Our ambitions now extend beyond cyber insurance. Nearly one in ten Fortune 500 companies is an insurance company, yet most were founded before World War II. With this funding, we plan to bring our technology-driven approach to other lines of commercial insurance as we seek to build the digital insurance company of the future.”

With this funding, Coalition plans to invest in three key areas:

Build the digital insurance company of the future. “We believe the future of insurance will be defined by technology, and we will continue to invest in building a leading technology company focused on innovation across all aspects of the insurance value chain,” said Motta.

Expand to new product lines. Following its strong growth in cyber and technology insurance, Coalition plans to imminently launch new insurance products to address a range of risks facing the modern enterprise — many of which are not well covered by standard business insurance policies.

International expansion. Following its expansion into Canada in 2020, Coalition plans to expand its offerings into multiple new international markets.

“Coalition is a clear leader in this space and we’re excited to support their vision to reimagine commercial insurance,” said Shardul Shah, Partner at Index Ventures. “Not only does Coalition provide peace of mind after a loss, but also peace from mind: their risk management platform, predictive analytics, and incident response services help organizations decisively and affirmatively remain resilient to risk.”

“Despite a surge in cyber attacks and ransomware, Coalition has delivered industry-leading loss performance by leveraging differentiated technology across the policy lifecycle,” said Paul Stamas, Managing Director and Global Co-Head of Financial Services at General Atlantic. “We’re excited by the innovation that Coalition is driving in cyber insurance.”

Coalition has raised $300 million in equity funding from leading global technology investors including Index Ventures, General Atlantic, Ribbit Capital, Vy Capital, Hillhouse Capital, and Valor Equity Partners, among others. Founded in 2017 by Joshua Motta and John Hering, Coalition is one of the largest providers of cyber insurance and security in the United States and Canada. Today, Coalition serves over 42,000 customers, providing no-cost cybersecurity tools to prevent losses, security and incident response services to contain them, and comprehensive insurance to help organizations recover from failures and breaches. The investment follows long-term capacity commitments from leading global insurers Swiss Re and Arch Insurance.

To learn more about Coalition, visit coalitioninc.com.

About Coalition

Coalition is a leading provider of cyber insurance and security, combining comprehensive insurance and proactive cybersecurity tools to help businesses manage and mitigate cyber risk. Backed by leading global insurers Swiss Re Corporate Solutions, Arch Insurance, Lloyd’s of London, and Argo Group, Coalition provides companies with up to USD $15 million of cyber and technology insurance coverage in all 50 states and the District of Columbia, as well as CAD $20M of coverage across 9 provinces and 3 territories in Canada. Coalition’s cyber risk management platform provides automated security alerts, threat intelligence, expert guidance, and cybersecurity tools to help businesses remain resilient in the face of cyber attacks. Headquartered in San Francisco, Coalition has presences in New York, Los Angeles, Chicago, Dallas, Washington DC, Miami, Atlanta, Denver, Austin, Vancouver, and Toronto.

Media Contacts

Mary Armstrong & Emily Japlon
General Atlantic media@generalatlantic.com

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Allianz X invests USD 75 million in fintech WeLab

AllianzX
  • WeLab has close to 50 million private and business clients in key growth markets for Allianz: Hong Kong and China
  • Allianz X investment to enable business expansion and tech platform development
  • Beginning of WeLab-Allianz partnership on insurance and investment products: WeLab Bank and AllianzGI plan strategic cooperation on digital wealth management solutions

Munich/Hong Kong, March 8, 2021

Allianz X, the digital investment unit of Allianz, is participating in the Series C financing round of Hong Kong-based fintech WeLab with an investment of USD 75 million, thus adding another promising company to its existing portfolio of Asian growth companies.

Allianz X’s investment will be instrumental in financing WeLab’s further expansion and, in particular, enabling the ongoing development of its technological platform. Allianz X’s commitment also marks the start of a deeper strategic cooperation between Allianz and WeLab. Within the framework of this cooperation, both partners plan to jointly develop digital products and solutions for wealth management, among other things. The geographical starting point of the cooperation is Hong Kong. A later expansion to the rest of the Greater Bay Area with its 72 million total inhabitants is planned, potentially also to Indonesia and the Southeast Asian markets at a later stage.

Since its founding in 2013, WeLab has established itself as one of the leading digital financial service providers in Asia. Its services include digital banking services and loans for private customers, a digital lending platform to connect lenders and borrowers, as well as a number of technology-driven services to support financial institutions in their lending processes. WeLab currently operates in Hong Kong, mainland China, and Indonesia. In total, WeLab has close to 50 million retail customers and 600 corporate customers. Based in Hong Kong, the company operates WeLab Bank, one of the first fully-licensed digital banks in Asia, which received its licence in early 2019. WeLab operates with a high-performance technology platform based on many innovations developed in-house – such as a proprietary risk management system based on Artificial Intelligence and a patented privacy computing solution that ensures the secure transfer of sensitive data.

In line with Allianz’s growth strategy in Asia, Allianz X has already made several investments in the region. These include investments in telemedicine company Halodoc; 99.co, Southeast Asia’s fastest growing digital real estate brokerage; and GoJek, a digital company that offers a wide range of services on its platform, from taxi rides to food delivery and mobile payments. BIMA, a digital insurance provider in emerging and developing markets, is another Allianz X portfolio company with extensive business in Asia. The fintech WeLab will further strengthen this portfolio.

Nazim Cetin, CEO of Allianz X: “In a relatively short amount of time, WeLab has built up a powerful platform for digital financial services and achieved excellent access to private and business customers in Asia, a region of strategic importance for Allianz. WeLab’s high-performance technology platform, in particular, makes it a unique fintech in the Asian markets. The investment in WeLab is a promising one for Allianz both economically and strategically. Together with our partners within Allianz, we look forward to leveraging our strategic partnership with WeLab and the business potential in the region.”

Simon Loong, Founder & Group CEO of WeLab: “We are thrilled to welcome Allianz as an investor and strategic partner to the WeLab Group. This is a natural partnership where we see a lot of synergies between the whole WeLab Group and Allianz as a leading insurer and asset manager, particularly as we share a focus on delivering advanced technology solutions to customers in Asia. Today, we announce both the new round of funding and a strategic partnership in wealthtech and financial services with WeLab Bank. We look forward to expanding WeLab’s geographical presence and bringing our technology into these new markets with Allianz. We will be expediting our hiring this year, aiming to add around 100 hires, as investing in people and culture will be key to support future growth.”

Desmond Ng, Head of Asia Pacific at Allianz Global Investors: “Asia is home to some of the most dynamic wealth management and banking markets of the world. Hong Kong, in particular, is a significant market for us. With the second-highest bank deposits per capita in the world, it is a very attractive wealth management market. The potential strategic cooperation with WeLab presents an exciting opportunity for Allianz Global Investors as an integral part of our growth strategy in Asia.”

Media contacts:

Allianz X

Gregor Wills

+49.89.3800-61313

gregor.wills@allianz.com

 

WeLab

WeLab Communications Team

+852.6214-4734

pr@welab.co

 

AllianzGI Asia-Pacific

Kimsten Law

+852.6506-8370

kimsten.law@allianzgi.com

ABOUT ALLIANZ X

Allianz X invests in digital frontrunners in ecosystems relevant to insurance and wealth management. As one of the pillars of Allianz Group’s digital transformation strategy, Allianz X provides an interface between Allianz Operating Entities and the broader digital ecosystem, enabling collaborative partnerships in insurtech, fintech, and beyond.

For more information, please visit: https://www.allianzx.com.

Allianz-X_Press-Release_Allianz-X-invests-USD-75-million-in-fintech-WeLab

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Allianz to invest in ControlExpert

AllianzX
  • ControlExpert is a leading technology-driven automotive claims processing company active in 16 countries
  • Together with ControlExpert, Allianz expects to significantly improve claims handling through Artificial Intelligence (AI) and automation
  • Transaction is Allianz X’s second majority investment, following the acquisition of Finanzen.de in May 2019

Munich, Langenfeld, 09.03.2020— Allianz X, the digital investment unit of Allianz Group, in cooperation with Allianz Germany, has entered into binding agreements with General Atlantic and other shareholders of ControlExpert for a majority investment in the company. The transaction is subject to the approval of the relevant antitrust authorities.

ControlExpert, a multi-national market leader in AI-supported automotive claims handling, partners with more than 130 insurance companies, car dealerships, repair shops, leasing companies and OEM partners at 17 locations across the world. The company offers an end-to-end platform for companies to digitalize and automate their motor claims management.

“Technical applications and platforms are crucial for capturing new opportunities in the digital era. ControlExpert has emerged as a clear leader in motor claims management in Germany and continues to show growth in international markets. We look forward to bringing together Allianz’s 130 years of experience in claims management and ControlExpert’s technological expertise to drive significant changes in the sector,” said Nazim Cetin, CEO of Allianz X GmbH.

“The cooperation with ControlExpert will enable us to settle automotive claims far more quickly in the future,” stated Jochen Haug, Board Member and Chief Claims Officer at Allianz Versicherungs-AG. “Additionally, we look forward to deploying Artificial Intelligence in key areas such as image recognition and fraud prevention to provide new services and bespoke offers to our customers.”

Following the transaction, ControlExpert will maintain its business model and operational autonomy. The company will retain its name, brand and identity, and will continue to offer its range of services to its clients including Allianz Germany.

“Our long-standing collaboration with Allianz has demonstrated that we share a common ambition in continuing to drive digitalization and customer-centricity forward. With its wide-ranging expertise and international focus, Allianz will support us in achieving further growth both in Germany and in the global markets. In this way, we will take a step closer to realizing our vision of drivers receiving fair compensation for damages on the very same day, anywhere in the world. In the future, it will be possible to handle claims and maintenance processes more quickly and easily, something which all our customers will benefit from,” explained Nicolas Witte, Managing Director of ControlExpert.

“We are looking back on a fruitful partnership with ControlExpert. Since 2017, we have supported the company, the management team around Nicolas Witte and the founding family in rolling out their business model internationally and further institutionalize the company. We are grateful for the constructive and trusting cooperation and wish the company and its employees all the best,” said Jörn Nikolay of General Atlantic.

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Abacai announces acquisition of Dayinsure

CVC Capital Partners

Abacai Group (“Abacai or “the Group”), the insurtech recently formed by Mark Wilson and Sun Capital Partners today announces the acquisition of Dayinsure to complement its existing insurance businesses.

Founded in 2005, Dayinsure has grown consistently to become a leading provider of temporary motor insurance cover in the UK for car, van, motorhome and business drivers and has strengths in IT and data analytics.

CVC Credit, the dedicated credit arm of leading international private equity and advisory firm CVC Capital Partners, has become a strategic partner of Abacai: providing a combination of equity and debt financing for the acquisition and the Group’s future development.

Abacai will retain Dayinsure as a standalone go-to-market business, and the management team will continue to lead the separate subsidiary. Abacai will continue to focus on serving the insurtech underwriting market through Abacai Capital.

Mark Wilson, CEO and Co-Chairman of Abacai, commented: “Temporary motor insurance is a high growth segment at the core of the sharing economy. M&A is one of the two pillars of our growth strategy and we are excited to have completed this transaction so soon after we created Abacai.”

Barry Bown, CEO of Dayinsure, commented: “We are delighted to become part of Abacai. The customer focussed business model, is a good fit with our own. Teaming up will allow us to grow our footprint and accelerate our development.”

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CVC Credit supports Pollen Street Capital’s and Qatar Insurance Corporation’s investment in Markerstudy Group

CVC Capital Partners

The debt facilities provided by CVC Credit supported a £200 million equity investment in Markerstudy Group

CVC Credit is pleased to announce that it has supported Pollen Street Capital’s and Qatar Insurance Corporation’s investment in leading UK insurance company, Markerstudy Group, with £85 million senior debt facilities. The business will use the investment to fund an organic and acquisition-led expansion programme to build on its rapid development over recent years, following its evolution into a Managing General Agent.

Founded in 2001, Markerstudy is the fifth largest motor insurance provider in the UK, one of the largest privately owned insurance groups, and the largest Managing General Agent in the UK. With over 1.8 million policyholders, it is known for its investment in technology, underwriting expertise and sophisticated product development.

Chris Fowler, Managing Director in CVC Credit’s European Private Credit business, said: “We are pleased to support Pollen Street’s and QIC’s investment in Markerstudy. This is a growing and innovative business which operates in a stable market, driven by both consumer demand and regulatory trends. CVC Group is an experienced investor in the insurance sector, including current investments such as April and RAC in CVC Capital’s portfolios. This broad understanding of the space was key when validating the quality of the business and underlying market drivers.”

Michael England, Partner at Pollen Street, said, “We have been impressed throughout our time working with Markerstudy with their entrepreneurial attitude, track record of growth, and their ambitions for the future. We focus our investments on opportunities where we can work with management teams to build leaders in European financial services, driving growth through a combination of the strongest customer propositions, with data and technology led business models. The right lender is also important in a transaction such as this – we needed someone with experience of the industry, the complex regulatory environment, and the commercial drivers of success; in CVC Credit we are pleased to have found such a partner.”

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Funds advised by Apax acquire PIB Group from The Carlyle Group

Apax

25 January 2021

London, UK, 25 January 2021 – Funds advised by Apax Partners (the “Apax Funds”) today announced the acquisition of the PIB Group (“PIB”), a leading independent specialist insurance intermediary, alongside PIB’s management team. Funds advised by The Carlyle Group, PIB’s existing investor since 2015, will re-invest for a minority stake. The financial terms of the transaction (which is subject to applicable regulatory approvals) were not disclosed.

PIB’s executive management team, led by Chief Executive Officer Brendan McManus and Chief Financial Officer Ryan Brown, will continue to lead the business following the acquisition.

Launched in 2015, PIB has grown significantly during Carlyle’s ownership, both organically and through acquisitions. Today it is a highly diversified insurance distribution consolidator focusing on specialist commercial lines and non-standard personal lines products with deep expertise across both direct and B2B distribution through its broking, underwriting and network divisions. Since launch, PIB Group income has risen from nil to approximately £175m on a pro-forma basis in 2020. The company employs over 2000 employees in the UK, Channel Islands, Ireland, Germany, Poland and India. PIB recently acquired Barbon Insurance Group (its 35th acquisition) and also further strengthened its European presence through the acquisitions of WDB in Poland and Marx Re-Insurance in Germany.

The acquisition by the Apax Funds will help PIB continue its impressive growth trajectory, both organically and through accelerating strategic M&A to continue its domestic and international expansion. The Apax Funds have significant experience investing in the insurance sector and helping companies consolidate large, fragmented markets, including Assured Partners, Genex and Hub International, which were successfully exited in 2019, 2018 and 2013 respectively.

Brendan McManus, CEO of PIB, said: “I’m delighted that PIB has been acquired by the Apax Funds. This is a significant milestone in our history and thanks to support from The Carlyle Group since our formation, we have built a strong and attractive business. With further investment and the significant experience that Apax will offer, we look forward to continuing our ambitious growth plans both in the UK and internationally while putting our customers and colleagues at the forefront of everything that we do. We look forward to our continued success with both Apax and Carlyle as partners.”

John Redett, Managing Director at The Carlyle Group, said: “Five years ago we backed Brendan and his management team to become a major consolidator of insurance distribution businesses. We are thrilled in what we have achieved together. Through a significant M&A programme and investment in the company’s systems and talent, the business has delivered remarkable growth. We believe there continues to be opportunities for PIB to grow and are delighted to remain involved and continue the journey.”

Ashish Karandikar, Partner at Apax Partners, said: “We see a strong investment case for the specialist commercial insurance broking market and PIB stood out as a leading player in this space. The company has grown at an impressive rate, has an excellent track record of accretive M&A deals, including international acquisitions into fragmented markets and holds a leading position as one of the largest independent corporate brokers in the UK. We look forward to working with the team, and all PIB’s customers and clients as we continue to build on the company’s great success to date, using Apax’s significant experience in the sector to drive transformation and growth.”

PIB’s achievements have been recognised in the 2020 Sunday Times Virgin Atlantic Fast Track 100 of Britain’s fastest growing companies, as well as the Sunday Times PwC Top Track 250 of Britain’s leading mid-market private companies.

Linklaters are serving as legal counsel to PIB and The Carlyle Group, and Kirkland & Ellis is serving as legal counsel to Apax. KBW is serving as financial advisor to PIB and The Carlyle Group in connection with the transaction and Jamieson Corporate Finance and Dickson Minto has been advising the management team.

ENDS

About PIB Group
PIB is a dynamic independent insurance intermediary group that provides specialist commercial insurance solutions across the UK market and beyond. PIB offers a range of specialist teams, products and services to clients throughout the UK, Channel Islands, Ireland, Germany and Poland. For more information see www.pibgroup.co.uk

About Apax Partners LLP
Apax Partners is a leading global private equity advisory firm. Over its more than 40-year history, Apax Partners has raised and advised funds with aggregate commitments of approximately $50 billion. The Apax Funds invest in companies across four global sectors of Tech & Telco, Services, Healthcare and Consumer. These funds provide long-term equity financing to build and strengthen world-class companies. For more information see: www.apax.com.

About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global investment firm with deep industry expertise that deploys private capital across three business segments: Global Private Equity, Global Credit and Investment Solutions. With $230 billion of assets under management as of September 30, 2020, Carlyle’s purpose is to invest wisely and create value on behalf of its investors, portfolio companies and the communities in which we live and invest. Carlyle employs more than 1,800 people in 30 offices across six continents. Further information is available at www.carlyle.com. Follow Carlyle on Twitter @OneCarlyle.

Media Contacts:  

For PIB Group
Lorraine Hambleton / 020 3961 7644 / Lorraine.Hambleton@pib-insurance.com

For Apax Partners
Luke Charalambous / +44 20 7872 6494 / Luke.Charalambous@apax.com
Matthew Goodman / James Madsen, Greenbrook | +44 20 7952 2000 | apax@greenbrookpr.com

For The Carlyle Group
Andrew Kenny / +44 7816 176120 / Andrew.Kenny@carlyle.com

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Crafting a modern insurance brand

Felix Capital

At Felix, our core thesis is that digital technologies are shaping consumer lifestyles, giving rise to a new generation of loved and trusted brands and platforms that offer a better customer experience (and the enabling software that helps companies do this). While these changes are deeply evident in the way we now discover and buy products (see Farfetch, Goop, Mejuri, HighSnobiety, etc.), eat (see Deliveroo, HungryPanda, Frichti etc.), travel and get around (see Heetch, Dott, VanMoof etc.), and improve wellness & fitness (see Peloton, Urban, Unmind etc.) it’s becoming increasingly obvious that consumers also want this from one of the most important parts of their life — their personal finances.

For the past few years, we’ve proactively started deep-diving into the consumer finance and insurance sectors, building our conviction in the opportunity to create a modern, better insurance brand and customer proposition. The market presents an exciting opportunity — large in size, a necessary purchase, dominated by legacy practices and almost entirely lacking in customer love. In fact, the industry has one of the lowest average Net Promoter Scores and customer churn has been growing.

However, it’s not an easy industry to disrupt, and transforming it requires founders that are passionate to change the standard ways of working, able to navigate the regulatory and operational complexity of the industry, and deliver product innovation and a truly better customer experience. We believe we have found such a company in France with Leocare, and are excited to share our investment as we lead their Series A!

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Leocare’s founders Christophe and Noureddine started the company with the mission to provide “services to protect all the most important moments in your life” offering insurance for your car, home, smartphone, motorbike (and soon other areas too). They built a digital platform where consumers can easily buy, customise and manage their personal insurance — all from their mobile app. The founders have the ambition for Leocare to become a new type of insurance, not only providing comprehensive coverage but also superior service and ease of use, and over time providing preventative assistance and becoming a highly trusted brand.

We first met Christophe and Noureddine over a year ago and have been consistently impressed by their passion and focus (some would even say obsession) with creating a great customer experience and clear product vision. Despite — or perhaps because — neither of the founders come from an insurance background, they were able to tackle the problem with a fresh pair of eyes. Tired of the lengthy process they’ve experienced themselves in getting an accurate quote for insurance, and the “black box” nature of the pricing, they built one of easiest and more seamless customer experiences with 4 steps to a quote and a live, dynamic pricing calculator that shows potential customers exactly what goes into it. Customers can manage all their insurance policies from the same app and easily make changes or updates to their policies (for example, if they’ve moved to a new house, or had a baby, or to pause or cancel a policy) as well as purchase additional policies

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Being mobile-first isn’t just a gimmick, but is actually one of the keys to Leocare creating a service that customers love. While most other insurance providers fervently hope customers never contact them, Leocare makes it as easy as possible for customers to get ongoing support, from providing thoughtful reminders and notifications in the app (for example, the company updated its customers on changing confinement rules in their location during the recent Coronavirus lockdowns), to personalised driving suggestions for car owners. Customers can also chat with customer support in the app and file claims digitally, without traditionally lengthy paperwork. As a result, instead of the industry standard of engaging with customers once a year, Leocare’s customers often interact with their insurer monthly, deepening their sense of loyalty.

And this approach of simplicity, transparency, flexibility (as the insurance is charged as a monthly subscription), and superior customer service is clearly resonating well with consumers! To date, the Leocare app has been downloaded 160k times and is trending on the French app store, growing 40% month over month and having now reached over 10,000 French households. Impressively, the company continues to earn its customer love and loyalty with increasing customers choosing to buy a second or even third policy line from Leocare.

Christophe and Noureddine won’t rest on their laurels though. They have an ambitious plan to continue improving and evolving their product and service. The roadmap includes exciting plans such as:

  • Developing a bot to automate and facilitate the management of claims, and keep Leocare customers informed in real-time of the processing of their claims, via push notifications and a dedicated timeline in the app
  • TakeCare — a brand new road safety service for car insurance customers
  • An in-app marketplace to connect customers with licensed and vetted professionals to help with home and car maintenance and repair

Where most insurers hardly know their customers at all, Leocare is building its brand on the trust of customers who love the service and winning that customer love by putting them first. We are thrilled to be partnering with the team today (alongside our friends at Ventech and Daphni) and look forward to the journey ahead!

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AnaCap makes growth investment in leading German insurance broker MRH Trowe

Anacap

AnaCap Financial Partners (“AnaCap”), a leading financial services specialist mid-market private equity investor, today announces a significant growth investment into MRH Trowe (“MRHT”), an owner managed top-10 commercial lines insurance broker in Germany.

AnaCap will join the MRHT management team as a strategic growth partner with management remaining as the largest shareholder group in the company. The investment will enable the acceleration of an acquisitions pipeline alongside investment in talent, data management and the application of technology.

This transaction allows management to remain as long-term committed shareholders of the group while continuing to build a leading, German commercial lines insurance broker, supported by AnaCap as collaborative investment partners.

The deal follows AnaCap’s successful growth partnership with the management founders of heidelpay, a German payments company which was successfully sold to KKR last year.

MRH Trowe is one of the ten largest German industrial brokers. In addition to MRH Trowe Insurance Brokers GmbH, several specialist service providers for various segments operate under the umbrella of Mesterheide Rockel Hirz Trowe AG Holding. MRHT offers extensive expertise in practically all insurance lines for industrial and commercial customers as well as affluent private customers. The owner-managed company continues to pursue a consistent growth trajectory with a holistic advisory offer, specialised teams and a strong focus on digitisation at the interface of clients, brokers and insurers.

470 MRHT employees manage a premium volume of more than €300 million and helped to generate around €60 million of run-rate revenues in 2020. This represents an average annual growth rate of more than 20%, organically and inorganically, since 2017.

MRHT distributes its product offering through a strong network across 12 German cities nationwide and also has exclusive partnerships with more than 100 German savings banks.

As a specialist financial services investor, AnaCap will bring both capital and operational expertise to accelerate MRHT’s impressive growth through further acquisitions in the large and highly fragmented German commercial lines insurance broking market.

AnaCap will also support MRHT’s digitisation strategy, aiming to further develop their hybrid distribution model of tailored personal insurance broking as well as digital and online customer portals, claims settlement, reporting and cross-selling among other service offerings.

Ralph Rockel, Co-Founder of MRH Trowe, commented: “We are enormously excited about partnering with AnaCap for the next stage of our journey.  AnaCap has significant experience in the insurance market as well as a proven track record in building leading businesses both organically and through acquisition in the DACH region.  In addition, their expertise in the application of enabling technology will help us continue to gain market share and margins. We look forward to a dynamic outlook together.”

Tassilo Arnhold, Partner at AnaCap, commented: “The longer-term outlook for the insurance broking market in the DACH region is compelling. Our strategy is to partner with an excellent management team and to bring our experience of growth execution, as well as technological innovation in the insurance sector more generally, to support this outstanding growth opportunity. We anticipate working in tandem with the MRHT team over the coming years to accelerate a successful buy-and-build strategy in this attractive market.”

The investment was made from AnaCap Financial Partners III, L.P and financial details and terms of the transaction were not disclosed.

Jan 06 2021

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IK Investment Partners, Bertrand Liber and LSA’s management enter exclusive discussions with BlackFin to support the insurance broker in its next chapter of growth

ik-investment-partners

IK Investment Partners (“IK”) is pleased to announce that the IK Small Cap II Fund has entered exclusive discussions to acquire a majority stake in LSA (“LSA” or “the Company”) from BlackFin Capital Partners (“Blackfin”). ISAI will be joining IK by acquiring a minority stake, alongside LSA’s CEO, Bertrand Liber and management. Financial terms of the transaction are not disclosed.

Founded in 1970, LSA is a leading online insurance brokerage platform providing Property & Casualty (P&C) cover for individuals and small businesses in France. The Company specialises in automotive insurance products for non-standard risks, leveraging the prominence of its main brand Assurpeople.com and its fully digital customer experience. LSA covers the whole value chain of insurance products, including acquisition, subscription, contract and claim management through its proprietary IT platform.

Over recent years, LSA has diversified its offering, notably towards animal health insurance with the brand Fidanimo, and more recently by launching Airbag, a wholesale broker specialised in decennial civil liability insurance products for construction professionals. LSA is led by Bertrand Liber, who joined the Company in 2008 and became CEO in 2015. The Company currently employs 135 people based in its headquarters in Rueil-Malmaison and manages over 180,000 contracts in close partnership with leading insurance companies operating in France.

The transaction represents the 15th investment from IK’s €550 million Small Cap II Fund, raised in 2018.

Bertrand Liber, CEO of LSA said:“The LSA team and I are delighted to be partnering with IK, a leading private equity firm in Europe. The team brings impressive credentials in the insurance brokerage sector and has significant experience in helping companies like LSA scale up and grow while ISAI will be the perfect partner to leverage our tech-positioning. I sincerely would like to thank everyone at BlackFin for their help over the last five years in supporting the change of scale and the diversification strategy.”

Arnaud Bosc, Partner at IK and advisor to the IK Small Cap II Fund said:“We have been impressed by LSA’s remarkable track record of growth and the quality of the management team. Having carved a profitable segment of non-standard automotive risks, the Company stands to benefit by applying its digital model to other underserved segments of the market. We look forward to working with Bertrand to develop a platform for further growth.”

Christophe Poupinel, Partner at ISAI said:“LSA perfectly matches the investment strategy of our fund ISAI Expansion: an InsurTech with a dynamic growth, a recognised expertise and a strong focus on digital. We are delighted to work with IK and look forward to supporting the business in its next chapter of growth.”

Bruno Rostain, Partner at BlackFin said:“We have had a fantastic journey with LSA over the last five years and sincerely enjoyed working with Bertrand. Now is the right time for a new partner to come on board and we wish LSA every success in working with IK.”

Parties involved in the transaction:

IK Investment Partners: Arnaud Bosc, Pierre Gallix, Caroline Le Hen, Thierry Aoun, Pauline Lloret
ISAI: Christophe Poupinel, Nicolas Martineau , Antoine Lacour
Legal Advisor: Willkie Farr & Gallagher (Eduardo Fernandez, Hugo Nocerino, Ralph Unger)
Financial / Legal / Tax / Social BDD: PwC (Céline Appel, Marc-Olivier Roux, Yannick Olivier, Bernard Borrely)
Financing: Goldman Sachs Private Capital (Camille de Lamotte, Pierre Grandjean)
Management: LSA (Bertrand Liber, Julie Leveillé-Nizerolle, Henri Lavaure, Anthony Derien, Ludovic Saint-Laurens, Nicolas de Soubeyran, Hervé Lahogue, Laurent Cathalan)
BlackFin: Bruno Rostain, Sabine Mathis, Julien Renaud
M&A Advisor Seller: Rothschild Transaction R (Pierre Sader, Philippe de Montreynaud, Julien Fauconnier, Hadrien Lerouge)
Legal Advisor Seller: Gide (Pierre Karpik, Louis Oudot de Dainville)
Legal Advisor Management: Lerins & BCW (Laurent Julienne, Yohann-David Saadoun)
Tax Advisor Management: Delaby & Dorison (Emmanuel Delaby, Clément Martin)
Financial VDD: Grant Thornton (Emmanuel Riou, Tanguy Guilbaud, Nicolas Salle, Jules Bourdin)

For further questions, please contact:

IK Investment Partners

Maitland/AMO
James McFarlane
Phone: +44 (0) 7584 142 665
jmcfarlane@maitland.co.uk

About IK Investment Partners

IK Investment Partners (“IK”) is a Pan-European private equity firm focused on investments in the Benelux, DACH, France, Nordics and the UK. Since 1989, IK has raised more than €13 billion of capital and invested in over 140 European companies. IK supports companies with strong underlying potential, partnering with management teams and investors to create robust, well-positioned businesses with excellent long-term prospects. For more information, visit www.ikinvest.com

About ISAI

Launched in 2010, ISAI Gestion is the French Tech entrepreneurs’ fund gathering more than 300 entrepreneurs across the world. ISAI, authorized by French regulator AMF, can fund and support high potential companies at early stages (venture capital, €150k to €3M initial tickets with ability for follow-on rounds) or at more mature stages (growth equity/LBO, €5M to €30M investments). Follow ISAI at www.isai.vc

About Blackfin

BlackFin is a sector-focused private equity manager, specialized in Financial Services across Europe. The firm’s investment strategy focuses on asset-light businesses in the financial services sector such as payments, independent financial advisors, wealth and asset management, insurance and credit brokerage, business process outsourcing or administration, capital markets and financial technology. BlackFin Capital Partners is a fully independent firm, founded in 2009 by four partners with a demonstrated track record as managers and entrepreneurs in the financial industry. The operational DNA of the firm stems from this experience. Altogether the team consists of 30 experienced professionals operating out of three offices in Paris, Brussels and Frankfurt. BlackFin manages in excess of €1.8bn, across three sector-focused buyout funds, and a VC fund dedicated to Fintech investments. For more information visit www.blackfincp.com

About LSA

Established in 1970, LSA Courtage is a leading online insurance brokerage platform specializing in P&C products in France for individuals and small corporates, which are distributed under its own brands or under white label. The company’s 135 employees work in support of the largest insurers in the French market with extensive underwriting and management capacities. LSA distinguishes itself by its particularly strong position in underserviced areas of the market as well as its use of new technologies in insurance distribution and management. For more information visit www.lsa-courtage.com

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Fairfax announces sale of Riverstone Europe to CVC Strategic Opportunities II

02 Dec 2020

OMERS has also agreed to sell all of its interests in RiverStone Europe as part of the transaction

Fairfax Financial Holdings Limited (“Fairfax”) (TSX: FFH and FFH.U) announces that it has entered into a binding agreement with CVC Capital Partners (“CVC”) to sell all of its interests in RiverStone Europe to CVC Strategic Opportunities Fund II. OMERS, the pension plan for Ontario’s municipal employees, has also agreed to sell all of its interests in RiverStone Europe as part of the transaction.

The purchase price to be received by Fairfax on closing of the transaction is approximately US$750 million. Fairfax will also be entitled to receive up to US$235.7 million post-closing under a contingent value instrument. Luke Tanzer will remain the Managing Director of RiverStone Europe and Nick Bentley, the Chief Executive Officer of the RiverStone Group, will remain on the board of RiverStone Europe post-closing.

After closing, RiverStone Europe will also operate under the name RiverStone International and will seek to continue its successful track record of acquisitions and growth led by its existing management team.

“We are very pleased to enter into this transaction with CVC,” said Prem Watsa, Chairman and Chief Executive Officer of Fairfax. “RiverStone Europe is an industry leader in run-off insurance services, and CVC’s scale and vision will give RiverStone Europe, under the continued leadership of Luke and his management team, the opportunity to further grow the business. Nick and Luke are also fully supportive of this transaction, based on their strong beliefs that it was the best way for RiverStone Europe to continue to grow and pursue run-off transactions. We wish Luke and all of the employees at Riverstone Europe much success in the future. Fairfax remains committed to continuing to grow its other European businesses, including its Lloyd’s of London activities.”

“I am extremely happy to partner with CVC in this next chapter of our development,” said Luke Tanzer, Managing Director of RiverStone Europe. “This transaction will provide us with a runway for further growth as we continue to offer the most trusted and effective run-off solutions in the insurance market. We look forward to joining the CVC family and benefitting from their deep experience of financial services, global network and long term pool of capital.”

“As one of the largest global consolidators of non-life run-off insurance books, with a leading position in the UK and Lloyd’s market, embedded cash flows and a predictable financial profile, RiverStone Europe is ideally suited to CVC’s Strategic Opportunities platform, which specializes in backing established businesses in stable markets that have long term growth ambitions,” said Peter Rutland, Managing Partner and Head of Financial Services at CVC. “We have got to know RiverStone and Fairfax over many years, and are delighted to now have the opportunity to work with Luke Tanzer and his experienced team.”

The transaction is subject to customary closing conditions, including various regulatory approvals, and is expected to close in early 2021.

Fairfax is a holding company which, through its subsidiaries, is engaged in property and casualty insurance and reinsurance and the associated investment management.

CVC is making this acquisition through Strategic Opportunities Fund II, a vehicle designed to invest in high-quality businesses that are suited to longer hold investment horizons.

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