Warburg Pincus, Temasek buy insurance services firm SRG in £1 billion deal
The transaction is to help SRG expand internationally, including further into Europe and Asia
WARBURG Pincus and Singapore’s Temasek agreed to acquire Specialist Risk Group (SRG), an independent insurance intermediary based in London.
The management team of SRG will continue to hold a significant stake, investing alongside Warburg, a private equity firm focused on growth, and Temasek, the company said in a statement on Tuesday (May 21), confirming an earlier Bloomberg News report.
The deal values SRG at more than £1 billion (S$1.7 billion) including debt, according to people familiar with the matter. The transaction is aimed at helping SRG expand internationally, including further into Europe and Asia, they said, asking not to be identified discussing confidential information.
SRG, which was launched in January 2020, employs more than 600 people and has placed premiums of more than £1 billion, according to the statement.
Private equity firms are beginning to deploy cash again, albeit selectively into companies with good growth prospects, as pressure mounts from investors to generate strong returns.
The deal also comes amid increasing consolidation in the insurance space. Insurance giant Aviva said this year that it would buy specialist insurer Probitas for £242 million. Over the past decade, larger insurers, such as Catlin, Amlin and Novae, have also been acquired.
SRG and the company’s previous backer, Palo Alto, California-based HGGC, were advised by Evercore, while Warburg was advised by Macquarie Capital and the company management was advised by Liberty Corporate Finance. BLOOMBERG
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