Insurance holding company Ambac Financial Group (Ambac) has completed its acquisition of a 60% stake in Beat Capital Partners (Beat).
Beat is a London-based insurance underwriting and MGA incubation platform.
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The transaction, initially announced in June, positions Ambac as a majority shareholder, with Bain Capital and Beat’s management team each retaining a 20% equity interest.
Since its inception in 2017, Beat is said to have launched 13 underwriting franchises and MGAs.
It has also overseen rights for Syndicates 4242 and 1416 at Lloyd’s and sustained an exclusive capacity relationship with Bermuda reinsurer Cadenza Re.
In 2023, Beat’s businesses produced approximately $533m in gross premiums and around $17m in earnings before interest, taxes, depreciation, and amortisation (EBITDA).
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By GlobalDataPost-acquisition, Beat will continue to operate under its current management, led by chairman John Cavanagh.
Ambac has stated that this acquisition is a strategic move that doubles the size of its property and casualty (P&C) insurance operation.
The company is now on a trajectory to generate an estimated $1.4bn (£1.09bn) in premiums annually by 2024.
The acquisition significantly enhances Cirrata Group, Ambac’s insurance distribution division, by adding immediate scale and diversification, Ambac added.
It increases the number of MGAs within Cirrata Group to 16.
Ambac president and CEO Claude LeBlanc said: “We are excited to complete this transaction, which materially scales our insurance distribution business and strengthens our position as a premier destination for MGAs.
“With its strong reputation, proven leadership team and the expertise of its MGA CEOs, Beat will be an important asset to our organisation as we continue to execute our specialty P&C strategy and drive long-term growth and value creation for our shareholders.”
Cavanagh said: “Beat’s partnership with Ambac will enable us to take Beat to the next level, building on our established track record of achieving growth and strong margins. Together with expanded international scale, we can offer an even stronger platform for MGAs and underwriting franchises, and we all have the firepower to grow and expand globally as well as in the US.”
In a recent development in June, Ambac entered into a definitive agreement to sell its legacy financial guarantee businesses Ambac Assurance Corporation and Ambac UK to Oaktree Capital Management for $420m in cash.
