Kane, a provider of specialist risk and insurance management services, announced that it has signed an agreement to acquire the insurance management operations of HSBC.
The bulletin explained that “under the agreement, which has been signed with HSBC Bank Bermuda Ltd, HSBC Bank Cayman Ltd and HSBC Insurance Agency (USA) Inc, Kane will acquire HSBC Insurance Holdings (Bermuda) Ltd, HSBC Insurance SPC Ltd, the insurance management business and assets of HSBC Bank (Cayman) Ltd, and HSBC Insurance Agency (USA) Inc for a total amount of $27.5 million. The acquisition will be backed by private equity firm CBPE Capital.” Completion of the acquisition is expected to take place on 30 April 2011, subject to regulatory approvals.
HSBC Insurance Management (HIM) is the “world’s fourth largest insurance manager and a recognized leader in the field of Insurance Linked Securities (ILS),” Kane continued. “HIM has an extensive and diverse customer base, which it serves from a global network of offices in Bermuda, Cayman, Guernsey, Malta, New York, South Carolina, Washington DC and Vermont, in addition to being approved to provide insurance management services in six other US States.”
The Company provides management, administration and structuring support services for captives, cell companies, ILS, insurance and reinsurance companies, as well as life, pensions and investment (LPI) Companies.
Kane’s CEO Stephen May commented: “This agreement is a major step forward in the overall growth strategy for Kane. The acquisition will position us as the world’s largest independent insurance manager and clearly supports our aim of creating a global, domicile-neutral platform from which to offer our independent, expert advice. We welcome the new employees and customers of HIM into our Group and look forward to building and developing long-term successful relationships.”
HSBC will work closely with Kane to ensure a smooth integration of HIM into the Group. As part of the acquisition, Kane has offered employment to all HIM staff.
HIM’s CEO Roy Fellowes indicated the company is “excited about becoming a part of the Kane Group and delighted they have embraced, and are committed to supporting and growing all current HIM business lines.”
He also indicated that the two companies have a “number of synergies, not only in relation to the products and services we provide, but also in terms of the culture and approach of the two organizations. These synergies will enable a successful transition and ensure that we maintain the high levels of service which our customers expect.”
Clive James, a Director of Kane, added: “The acquisition of HIM provides a strong fit for Kane. We have established an excellent reputation in the provision of alternative risk transfer services, and are keen to bolster our activities in all of the sectors in which HIM presently operates. The Company provides a large and secure base in a number of key insurance territories coupled with a significant presence in traditional captives, and the specialist ILS and LPI markets”
Kane is a provider of specialist risk and insurance management services. It has offices in Bahrain, Dubai, Guernsey, London and Qatar. In addition to its risk management services, as out lined above, it is also a specialist provider of Takaful insurance solutions.
Source: Kane
Topics Mergers & Acquisitions
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