TigerRisk deal reflects Howden’s US strategy targeting reinsurance and MGAs
Howden Group’s acquisition of TigerRisk Partners, revealed yesterday on Intelligent Insurer, represents a reflection of the company’s desire to continue to invest in its US operations, in particular MGAs and reinsurance, in what remains a time of continuing market disruption, the company said.
The deal, which the companies claim creates a $30 billion company (in gross written premiums handled) with an enterprise value of more than $13 billion, represents a significant shift in the reinsurance brokerage landscape. It follows other tie-ups between Guy Carpenter-JLT Re in 2019 and Gallagher-Willis Re in 2021 and creates a company capable of disrupting the domination of these entities as well as Aon Reinsurance Solutions.
The deal will mean that Howden’s reinsurance unit will represent around 20% of the broker’s total revenues, roughly the same as DUAL, its specialist general agency and underwriting management group in the US. Last year, DUAL grew significantly thanks to its purchase of Align Financial Holdings, another specialist general agency, for $800 million.
“The acquisition represents Howden’s continued investment in the US, focusing on MGA and reinsurance, to support its existing retail, wholesale and MGA clients and follows its recent move to enhance DUAL, its leading specialist general agency and underwriting management group in the US, through the purchase of Align Financial Holdings,” Howden said in a statement.
It confirmed that the deal is backed by its long-term investors, including General Atlantic (investor since 2013), CDPQ (investor since 2018), and Hg (investor since 2021).
Howden continued: “The transaction significantly enhances the scale and depth of Howden’s reinsurance and capital markets offering and creates the much-needed fourth global player in the reinsurance market. This builds on the Group’s global integrated approach and continued commitment to deliver more choice for clients and act as the natural long-term home for talent in the market.
“At a time of continuing market disruption, the combination also enhances the credibility, relevance, scale and capability of Howden’s full service offering across insurance, reinsurance, MGA and capital markets.”
David Howden (pictured left), CEO, Howden Group said: “ 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 us and the industry. Importantly, its evolution mirrors our own 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.
“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, it brings 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.”
Rod Fox (pictured right), executive chairman and co-founder of TigerRisk Partners, who will now become executive chair of Howden Tiger, said: “All I can say is ‘Wow!’ This combination is transformational – we will become the difference the market is looking for.
“The combined entities will have the culture, deep experience and the scale to really 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: “I have been a big admirer of what TigerRisk has built and its achievements; the areas of the market in which it leads are incredibly complementary to our own 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.”
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