Private Equity Firm Centerbridge Weighs Exit Options for £3 Billion Canopius at Lloyd’s

A consortium led by private equity firm Centerbridge Partners is exploring exit options including an initial public offering of Canopius Group in a deal that could value the Lloyd’s of London insurer at about £3 billion ($3.9 billion), according to people familiar with the matter.

The group is working with advisers on the strategic review and a sale of the insurance company is also one of the options under consideration, the people said, asking not to be identified discussing confidential information. Canopius, which also counts Samsung Fire & Marine Insurance Co. among its backers, would likely be listed in London next year if the group decides to proceed with an IPO, according to the people.

Deliberations are ongoing and no final decisions on the timing and structure of the transaction have been made, the people said. The consortium could also decide to keep the business for longer, they added.

Representatives for Centerbridge and Canopius declined to comment.

Founded in 2003, Canopius is a specialty and property and casualty insurer with underwriting operations in the UK, the US, Bermuda, Singapore and Australia, according toi its website. It’s one of the largest syndicates in Lloyd’s. The Centerbridge-led consortium acquired the insurer in 2018. Canopius previously explored a London listing in 2021 before abandoning efforts in a turbulent market.

Private equity firms are becoming more active in exploring deals, including acquisitions and exits, thanks to a narrowing bid-ask spread and improving financial markets. Exits via IPOs, however, still remain dicey with global stock indexes turning volatile.

A London listing would be a major win for the financial hub, especially in the wake of newly announced rules aimed at easing issuers’ path to the market. The UK is hoping the new listings framework will help boost activity after a years-long drought. Major names such as chip designer Arm Holdings Plc have been lost to New York, and listed firms including CRH Plc are also seeking to tap the deeper investor pool across the Atlantic.

A spate of firms are indeed considering listings in London. Anglo American Platinum Ltd., Vivendi SE’s Canal+ and CK Infrastructure Holdings Ltd., backed by Hong Kong tycoon Victor Li, have indicated interest in pursuing London listings.

The Lloyds of Lloyd Ltd. office building in London, UK, on Wednesday, Nov. 15, 2023. Photo credit: Hollie Adams/Bloomberg