Ambac Financial Group, a prominent insurance holding company, has announced a strategic move to acquire a commanding 60% stake in Beat Capital Partners, a London-based insurance underwriting and managing general agency incubation platform, for a substantial sum of US$282 million.
The deal, detailed in a definitive agreement, entails Ambac purchasing the majority ownership from existing shareholders, including Bain Capital and Beat’s management team. Post-acquisition, Beat’s management team and Bain Capital will each retain approximately 20% equity interest in the company, reflecting Ambac’s dedication to fostering financial collaboration with its partners.
Ambac’s President and CEO, Claude LeBlanc, hailed the agreement as a significant milestone for the company. LeBlanc expressed, “This acquisition marks a pivotal moment for Ambac. By integrating Beat, a prominent UK independent underwriting manager, we are advancing our vision of becoming a premier destination for MGAs, while notably accelerating progress towards our ambitious three-year target of surpassing US$100 million in annual EBITDA.”
LeBlanc continued, “This strategic move catapults Ambac to the forefront of the specialty program insurance market. We are not merely acquiring a leading specialty underwriting platform; we are forging ties with a team that boasts a proven track record in building and launching profitable MGAs from scratch, a key component of our growth strategy. The addition of Beat augments our scale instantaneously and furnishes a robust pipeline to fuel future expansion.”
John Cavanagh, Partner and Chair at Beat, lauded the agreement as a “transformative partnership” for the UK underwriting platform. Cavanagh affirmed, “Ambac’s well-established MGA incubation and carrier capabilities, coupled with its stellar leadership, perfectly complement Beat’s existing platform and team. This collaborative endeavor now stands as one of the foremost global platforms for MGAs and underwriting franchises, with a substantial presence in the US, UK, and Bermudan markets, and potential to extend into other regions.”
Beat, since its inception in 2017, has launched 13 underwriting franchises and MGAs, while concurrently holding management rights for Lloyd’s Syndicates 4242 and 1416 and maintaining an exclusive capacity relationship with Bermuda reinsurer Cadenza Re. In 2023, Beat’s ventures amassed US$533 million in combined gross premiums and approximately US$17 million in EBITDA.
With the inclusion of Beat, Ambac’s specialty property and casualty insurance platform is anticipated to generate over US$1.4 billion in gross written premiums on a combined full-year 2024 pro forma basis.
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