Howden Group Holdings is set to enhance the scale and depth of its reinsurance and capital markets offering with the acquisition of the broker, TigerRisk Partners.
The deal, which still awaits regulatory approvals, represents almost $400 million of combined reinsurance revenues and provides clients with access to 450 experts across over 30 offices.
Using the 2020 revenues as a basis, the rating agency, A.M Best in its “Top 20 Global Insurance & Reinsurance Broking Groups” ranks Marsh & McLennan Cos, Aon Plc and Willis Towers Watson as the top three in the world.
This deal, however, will push up the rating of Howden which sits in 15th position on the A.M Best ranking.
Howden states that the transaction “creates the much-needed fourth global player in the reinsurance market,” and builds on its global integrated approach and ongoing commitment to deliver greater choice for clients and act as the “natural long-term home for talent in the market.”
According to the buyer, the deal further consolidates Howden’s position as a global re/insurance intermediary, creating a $30 billion gross written premium business with an enterprise value of more than $13 billion, employing a huge 12,000 people across 45 countries.
The acquisition comes on the heel of Howden’s recent move to buy DUAL in the U.S. via the acquisition of Align Financial Holdings.
With this addition, it is expected that Howden Re’s global distribution network and data-driven reinsurance expertise in international speciality treat, facultative, and the managing general agent (MGA) sector will accelerate the growth potential of TigerRisk’s US-focused reinsurance, capital markets, advisory, and technology and analytics offering.
David Howden, Chief Executive Officer, Howden Group, stated that TigerRisk has been the standout business and innovator in the reinsurance and capital markets space for many years and the decision to join forces with Howden is a unique opportunity and a game-changer for Howden and the industry.
“Importantly, its evolution mirrors our journey; from a standing start it has empowered employees through ownership and by taking an entrepreneurial and client-first approach, it has delivered phenomenal organic growth and become a genuine market challenger of the highest quality”.
He explained further, “Not only does the combination create an unrivalled digitally-driven reinsurance and capital markets business underpinned by a complementary product offering and strong cultural fit, but it also brings the full capability to our diversified and differentiated client offer, creating a fresh alternative of real scale for clients and talent. I am so excited about unlocking the potential of the two businesses and I can’t think of a better place for TigerRisk to continue its incredible long-term journey.”
For Howden, the acquisition of broker TigerRisk is a sign of its continued investment in the U.S., with a focus on MGA and reinsurance to support its existing retail, wholesale, and MGA clients.
This latest transaction is backed by Howden’s long-term investors, including General Atlantic, CDPQ, and HG.
Following the deal, Rod Fox, Executive Chairman and Co-Founder of TigerRisk, will become Executive Chair of Howden Tiger.
“All I can say is ‘Wow!’ This combination is transformational – we will become the difference the market is looking for,” said Fox.
“The combined entities will have the culture, deep experience and the scale to benefit our clients and world-class team members. It is a fantastic opportunity that we have been able to make a reality.
“We have built TigerRisk from the ground up – and this combination allows us to take our global capabilities to the next level while maintaining our entrepreneurial and ‘can-do’ attitude.
“People want choice, and it is clear that as part of Howden Group all of our existing and future clients, as well as the experienced professionals looking to join our team, will benefit from our distinctively different approach. I was immediately impressed with David and his team’s boldness. Together, we will be very bold.”
Elliot Richardson, Chair, Howden Re, added that he admired what TigerRisk has built and its achievements, stating that the areas of the market in which it leads are incredibly complementary to our strengths.
“The combination of our talent, expertise and distribution, underpinned by friendship and trust, means the solutions we can offer clients will be astonishing. Our ambition has always been to take a leading position in our chosen markets.
“This partnership immediately creates the global leader in Fac, Capital Markets, MGA, Analytics and Specialty Treaty – the pre-eminent reinsurance and capital markets provider for reinsurance buyers,” Richardson concluded.
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