Insurance and reinsurance broking group BMS has now completed the process of securing new investments from institutional investors that valued the brokerage at UK £500 million (US $636m).
The investments, from affiliates of Canadian pension fund British Columbia Investment Management Corporation (BCI) and private equity investors Preservation Capital Partners (PCP), were announced earlier this year in June.
All of the necessary regulatory approvals have now been received and BMS has now completed this significant investment in its equity from these major investors.
BMS CEO Nick Cook commented on the investment, “With BMS’s long-term future as an independent broker secured, BMS is poised for strong profitable growth. With the capital strength of BCI and PCP behind us, we are expanding in the North American reinsurance market and other high growth specialty and emerging risk lines that consistently generate strong performance. BMS has become the alternative broker of choice, with a full suite of analytical and actuarial capabilities to rival and, in some areas, exceed those of the world’s biggest broking firms, making it an attractive home for the industry’s leading talent.
“This major investment is a ringing endorsement of the London market and its continued leading role in the world’s insurance markets. I am convinced that our strategic partnership with BCI and PCP will be the gold standard for long-term investment in global wholesale and reinsurance broking for years to come.”
The management and staff of BMS have retained a significant equity share in the insurance and reinsurance broker, while CEO Cook and the executive management team are unchanged.
The BMS Board now benefits from Representatives of its new investors BCI and PCP.
The investment saw existing stakeholders selling their share, to realise profits from their backing of BMS and enabled exits for others we understand.
As part of the arrangement, Pioneer Underwriters will now be owned directly by BMS’ former main stakeholder and holding company Minova Insurance. Pioneer said that it “remains independent and owned directly by previous shareholders with Dane Douetil remaining as non-executive chairman,” with no changes to management team or strategy.
BMS already has a strong team delivering reinsurance broking services, including work with the collateralised and ILS fund markets as well.
The growth capital this investment provides will enable the brokerage to propel further growth and provides a platform for building out its specialisms even further.