Centerbridge et al. to buy Sompo UK division Canopius for $952m

US-based investment firm Gallatin Point Capital also took part in the deal, following which incumbent Canopius executive chairperson Michael Watson and chief underwriting officer Mike Duffy will lead the standalone business.

Under its new ownership, Canopius will look to diversify into new segments of the insurance market and undertake a recruitment drive to support the diversification.

Sompo said in a statement that the decision to divest Canopius followed a review conducted in the aftermath of its $6.3bn acquisition of Bermuda-based Endurance last year. The parent group explored whether Canopius could be integrated into Endurance, now rebranded as Sompo International, but decided against merging the two due to the cross-over of their Lloyd's operations.

Industry insiders recently told unquote" they expected to see an increase in spin-out opportunities for PE buyers, as corporates look to divest non-core assets in the wake of geopolitical uncertainty across Europe.

The Canopius deal is subject to regulatory approval and is expected to close in the first quarter of 2018.

Company
Founded in 2003, London-headquartered Canopius is a reinsurer offering underwriting and risk management services. It primarily operates in the Lloyd's insurance market and wrote around $1.6bn in premiums in 2016. The business has additional operations in Dublin, Zürich, Amsterdam, New York, Chicago, Singapore and Bermuda.

People
Centerbridge – Ben Langworthy (senior managing director); Luigi Sbrozzi (managing director).
Canopius – Michael Watson (executive chairperson).

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