Private equity firm Cinven, and BCI, one of Canada’s largest institutional investors, have reached an agreement to acquire Compre, a consolidator of closed books of non-life insurance policies, from CBPE Capital.
Financial details of the transaction have not been disclosed. Compre is believed to have net asset value of around £190m.
Compre is focused on the acquisition and management of discontinued non-life insurance portfolios – known as the “run-off” market – and has operations in the UK, Bermuda, Finland, Germany, Malta and Switzerland.
The global non-life insurance run-off market has grown steadily in recent years, driven by insurers’ increasing focus on balance sheet optimisation, capital efficiency and disposals of non-core business lines.
Compre has acquired portfolios of business from major institutions including Allianz, Generali, HSBC and Swiss Re.
Founded in 1991, Compre has acquired portfolios of business from major institutions including Allianz, Generali, HSBC and Swiss Re. It employs around 80 people at its offices in the UK, continental Europe and Bermuda.
Cinven Funds’ previous investments in the European insurance sector include Guardian Financial Services in the UK, Eurovita in Italy, and Viridium in Germany.
Cinven partner Luigi Sbrozzi said: “Compre is extremely well placed to access new growth markets, such as the US and Lloyd’s, and to broaden its client offering further.”
The transaction is expected to complete in Q2 2021 and is subject to regulatory approvals.
Source: Private Equity News