ProSight Global Inc., a specialty insurance company that was listed on the stock exchange in 2019, will be privately subscribed for in an agreement with private equity companies worth approximately $ 586 million.
Morristown, a New Jersey-based insurance company founded in 2009, will be majority-owned by New York-based TowerBrook Capital Partners LP, and New York-based Further Global Capital Management LP will hold a minority stake, the investment firms said in a statement. A new CEO was also appointed.
Under the terms of the transaction, ProSight shareholders will receive $ 12.85 per share in cash. ProSight's stock price was quoted at around $ 12.80 in a declining market early on Friday.
As part of the deal, ProSight will enter into a reinsurance agreement with Bermuda-based older reinsurers Enstar Group Ltd. to cover the remuneration of terminated workers and the remuneration of overtime workers. ProSight will waive net loss reserves of approximately $ 500 million and Enstar will provide an additional total limit of $ 250 million, according to a statement from Enstar. ProSight left the business with overtime at the beginning of last year.
Jonathan Ritz, former CEO of Validus Specialty, will be hired as CEO of ProSight. Current CEO Larry Hannon will be the CEO.
TowerBrook and Additional Global said in the statement announcing the deal, "ProSight will become a private company with the flexibility and capital to accelerate its next growth phase."
ProSight offers recognized offers and unauthorized coverage, specializing in nine industries: construction, consumer services, energy, marine, media, professional services, real estate, sports and transportation. In addition, the insurer launched an internal insurance offer last year.
The insurer, which is ranked A- by A.M. Best Co. Inc. listed in July 201
In 2019, the company reported $ 968 million in gross premiums, net income of $ 38.9 million and a combined 98% share. Its largest segment was real estate, which accounted for 17% of its gross premium, followed by consumer services with 13.8% and media with 12.9%.
ProSight reported $ 603.7 million in gross premiums for the first nine months of 2020, net income of $ 26.1 million and a combined share of 101.6%, according to the latest financial report.