(Reuters) – Private equity firm Carlyle Group Inc. told Reuters on Monday that it has agreed to acquire US specialty insurance provider NSM Insurance Group from White Mountains Insurance Group Ltd. for $ 1.78 billion in cash.
Carlyle said the deal is expected to close in the second half of this year. The transaction is expected to add $ 280 per share to the White Mountains adjusted book value.
Pennsylvania-based NSM Insurance is one of the largest independent insurance brokers and program managers that signs policies for pets, nonprofits, employee compensation, trucks and behavioral care. It generates more than $ 1 billion in premiums from more than one million customers, according to its website.
“We will make sure to invest back in the platform a little heavier and increase M&A activity,”; said James Burr, CEO of Carlyle, in an interview. “There is a lot of room in business-to-customer and improved technology.”
Private equity firms have pushed for consolidation in the insurance brokerage sector. Mergers and acquisitions in the insurance sector more than doubled in volume to a total of $ 58 billion in 2021 from $ 22 billion a year earlier, according to consulting firm Deloitte.
In 2021, Carlyle sold its majority stake in London-based insurance broker PIB Group to the private equity firm Apax Group for an undisclosed amount.
Carlyle has invested more than $ 10 billion in the financial services industry, including the payroll service provider BenefitMall, the American insurance company Sedgwick Claims Management Services Inc. and China’s Ant Group.