M&A

After securing a $1.6bn deal to acquire TigerRisk, Howden said the transaction will create a “much-needed fourth global player” in reinsurance.

This publication first revealed that the two parties were working on the deal last month.

Sources indicated talks have been conducted using an adjusted Ebitda figure for TigerRisk of around $85mn-$90mn, which is far higher than previously thought.

It is understood that the highest bidder was a consortium formed by Fortitude and Global Atlantic.

A takeover would boost Howden’s burgeoning reinsurance portfolio.

The deal propels HSCM total AuM and capital commitments to above $4bn.

Many hybrids, unless they are willing to take a meaningful financial hit to secure a divestiture, will have to stick with their reinsurance businesses through the current cycle.

The carrier also revealed $30mn in Russia-Ukraine Q1 losses.

Jefferies has been awarded the mandate to seek a buyer for the segment.

Acrisure entered into a definitive agreement with Markel in March to acquire the MGA.

The retro fund has redeemed 99% of share capital, returning around $106mn to public fund investors.

The deal will also provide $100mn in new equity funding to the legacy carrier.