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NSM Insurance Group, a portfolio company of Carlyle, has agreed to offload its US commercial insurance division to New Mountain Capital.
Financial terms of the transaction remain undisclosed.
Completion of the deal, which is expected within the next 45 days, is contingent on regulatory clearances and standard closing conditions.
The sale includes NSM’s diverse portfolio of 15 niche insurance programmes across property and casualty, accident and health, and reinsurance, as well as its retail agency, NSM Insurance Brokers.
These programmes will create a new independent business entity, which will retain the NSM brand until a new identity is launched.
Post deal-completion, NSM CEO Geof McKernan and president Bill McKernan will join the board of directors.
Aaron Miller, chief commercial lines officer at NSM, will take on the role of CEO for the new entity under New Mountain’s backing.
Houlihan Lokey was the exclusive financial advisor to Carlyle and NSM for the deal, while Wachtell, Lipton, Rosen and Katz provided legal advice. Polsinelli offered legal advice to NSM.
Ardea Partners was the exclusive financial advisor to New Mountain, with Simpson Thacher & Bartlett offering legal advice.
Geof McKernan said: “We are extremely proud of the unique portfolio of programmes we have built over the last 35 years that provide a profitable and diversified position in today’s competitive marketplace. New Mountain has an impressive track record and we have the utmost confidence in their expertise, integrity and commitment to drive NSM forward.”
New Mountain director Sean Donovan stated: “As a new independent business, we are excited by the potential to further accelerate growth through focused investment in the business, the team and technology, which will drive continued, long-term success.”
In August 2024, NSM completed the acquisition of InsurEVO, including UK travel insurance brands AllClear and InsureandGo.
NSM, established in 1990, is a global specialty insurance provider with more than $2bn in premium across 30-plus niche insurance programmes.