Investee Company – Wellington Re (UK)
Investee Company Business Type – Provides insurance servicesType of Financing – Start-up
Equity Providers – Candover, Blackstone
Equity Leader (Individual) – Marek Gumienny, Candover
Debt Providers – N/A
Debt Type – N/A
Debt Leader (Individual) – N/A
Equity Amount – £448 million
Total Deal Value – £448 million
Other Advisors – N/A
Comments – Candover and Blackstone are co-leading an equity syndicate that is committing £448 million to the establishment of a new London-based insurance company, Wellington Re. The deal is thought to be the biggest ever private equity commitment to a European financial services company.
Wellington Re, which will become operational in June 2002 subject to a number of regulatory approvals including Lloyd’s, third party capital providers on syndicate 2020 and the FSA, will specialise in property and casualty reinsurance, and UK commercial insurance. The company anticipates writing approximately £200 million of net premium in 2002.
Chris O’Kane, CEO of Wellington Re, said: “The establishment of Wellington Re creates a significant new force in the London Insurance market. Strongly capitalised and with a talented and experienced team of underwriters, Wellington Re will combine financial strength with flexibility and high levels of service.”
Marek Gumienny, managing director of Candover, commented: “We have had a long relationship with Wellington Underwriting plc and we are delighted to be backing Chris O’Kane and his team at this point in the insurance cycle. Wellington Re will be a quality franchise in the London market that we believe will receive significant broker support. This is an excellent second investment for the Candover 2001 Fund.”