UK’s Howden Group Holdings has reached a $1.6bn deal to buy Connecticut-based reinsurance broker TigerRisk Partners, leading to the formation of a $30bn broking powerhouse.
The merged entity is said to be the fourth largest reinsurance player across the globe, with reinsurance revenues of around $400m.
Established in 2008, TigerRisk has a presence in New York, Bermuda, London, Hong Kong, Minneapolis, Chicago, and Raleigh in addition to its Stamford base.
A statement from private equity firm Flexpoint Ford said that TigerRisk ramped up hiring over the last two years, increasing its staff headcount by almost 50% and its annual revenue by 25%.
The acquisition of TigerRisk is said to boost the scale of Howden’s reinsurance and capital markets proposition.
It continues Howden’s growth trajectory in the US. This includes the takeover of Align Financial Holdings through its underwriting unit DUAL.
Howden RE chair Elliot Richardson said: “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.”
With an enterprise value of over $13bn, the combined business will have a workforce of 12,000 and a presence across 45 countries.
The deal, which awaits regulatory clearance, is backed by Howden’s investors, including General Atlantic, Hg as well as CDPQ.
Howden Group David Howden CEO called the acquisition a ‘game-changer’.
“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,” he noted.
As part of the transaction, TigerRisk executive chairman Rod Fox will continue in his existing role at Howden Tiger.