Singapore’s sovereign wealth fund GIC has teamed up with private equity firm Cinven to buy marine insurance broker Miller.
The London-headquartered company has been acquired from its partners and corporate member, Willis Towers Watson (WTW). Financial details were not disclosed.
In February, WTW confirmed that it was looking to offload Miller, a business in which it acquired an 85% stake in June 2015. Miller partners hold the remaining 15%.
However, the disposal was delayed by the pandemic in the spring, with a WTW official quoted by Reuters as saying: “Given the current Covid-19 outbreak and associated uncertainty, we have paused our current efforts to explore strategic alternatives for Miller.”
Miller is a leading specialist insurance and (re)insurance broker operating in the UK, Lloyd’s and internationally. It places about £2bn ($2.6bn) worth of premiums annually.
The company operates across several specialist areas, including marine, energy, credit and political risks, delegated authorities, professional risks, property, casualty, sports and entertainment.
It employs more than 640 people through its offices in London, Ipswich, Brussels, Paris, Singapore and Geneva, covering the world’s major insurance hubs.
The business has an opportunity to benefit significantly from independent ownership
Cinven and GIC
Miller covers hull and machinery, protection and indemnity, cargo and war risk.
Its marine department is headed by Andrew Challacombe, its hull and machinery department is led by Anthony Burnell-Nugent, while Phil Wheeler is head of marine.
Cinven and GIC said they believe Miller is an “attractive investment opportunity” based on the “high-quality, cash-generative business model, with strong brand equity and an attractive, recurring revenue base”.
They also cite its “strong position” in the wholesale insurance markets with a long-standing client base, strong management team and deep bench of talent with significant expertise across its specialist areas.
“The business has an opportunity to benefit significantly from independent ownership, given the ability to accelerate its long-term growth profile through a combination of organic growth in a specialist sector, ambitious plans to recruit new specialist brokers and execute selective incremental bolt-on M&A [mergers and acquisitions] over time,” Cinven and GIC said.
“The underlying insurance market is forecast to continue growing in line with GDP, with potential additional upside for specialty insurers, further supported by short-term rate hardening.”
Yong Cheen Choo, chief investment officer of private equity, GIC, said: “Miller is one of the top and most established wholesale brokers with highly respected franchises in areas such as marine and energy, sports and entertainment and cargo.
“We are pleased to partner with Cinven and look forward to supporting Greg Collins and his team to seize future expansion opportunities for Miller.
“As a long-term investor, we are confident in the growth potential of the specialty insurance sector, and of Miller within it.”
The transaction is expected to complete in the first quarter of next year and is subject to regulatory approval.
Cinven and GIC where advised in the transaction by Barclays, Clifford Chance, Bain, PwC, Deloitte, Marsh and FTI Consulting.
Established in 1981 to manage Singapore’s foreign reserves, GIC describes itself as a global long-term investor with well over $100bn in assets in more than 40 countries.
