The private equity firm Carlyle Group has entered a definitive agreement to acquire US specialty insurance programs administrator NSM Insurance Group from the Bermuda-domiciled White Mountains Insurance Group.
A release from White Mountains has valued NSM at $1.775 billion. It also noted that White Mountains expects the transaction to lead to an approximately $280 gain to its adjusted book value per share, and it will increase undeployed capital from about $0.4 billion to roughly $1.7 billion.
Carlyle’s plans for NSM – one of the largest independent insurance brokerages for workers’ comp, pets, nonprofits, trucking, and behavioral healthcare – appear to be pushing for further growth. In a statement to Reuters, Carlyle managing director James Burr said that the firm “will look to invest back into the platform a bit more heavily and ramp up M&A activity.”
Read more: Insurancebusiness
