Global buyout giant Carlyle has agreed to buy NSM Insurance Group from White Mountains Insurance at a valuation of $1.775bn.
White Mountains expects the transaction to result in a gain of approximately $280 to its adjusted book value per share and strengthen its undeployed capital from $0.4bn to $1.7bn.
NSM provides specialty property and casualty insurance. It places insurance in niche sectors including specialty transportation, social services, real estate and pets.
John Redett, head of global financial services at Carlyle, said, “Leveraging Carlyle’s deep experience supporting companies in the insurance services sector, we are thrilled to partner with NSM’s exceptional founder-led management team to help the business execute numerous upside growth drivers, including continued operational improvement, accretive M&A opportunities, and strategic investments in technology and data & analytics.”
Carlyle’s investments in insurance companies come under the financial services vertical which had made over 50 transactions with more than $10bn deployed.
Apax Partners had bought into the firm’s portfolio company, insurance intermediary PIB, last year.
Carlyle exited Epic Insurance Brokers & Consultants to Oak Hill Partners in 2017 and bought into Barbon Insurance Group in 2015.
The firm hit a $4.6bn hard cap close for its second credit opportunities fund last month, smashing its initial $3.5bn target.
The new vehicle is almost double the size of Carlyle’s debut Credit Opportunities Fund closed in the summer of 2019, and gives the firm about $6bn of new investable capital including leverage.
It also emerged in January that Carlyle was readying itself for its biggest-ever European fundraise, with eyes on up to €7.5bn.
The firm was also reportedly seeking up to $10bn for a new Asia fund when it brings the vehicle to market this year.
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