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Kane
Oakley advises Kane on purchase of HSBC Insurance Management Operations
Completed Transactions - Kane Logo
Sector:
Other
Transaction Type:
Acquisition
Date:
March 2011
Deal Value:
$28m

Kane, a leading provider of specialist risk and insurance management services, hired Oakley Capital Corporate Finance (”Oakley”; the “Company”), the mid-market Corporate Finance and Corporate Broking specialist, on its agreement to acquire the insurance management operations of HSBC.

Under the agreement, which has been signed with HSBC Bank Bermuda Ltd, HSBC Bank Cayman Ltd and HSBC Insurance Agency (USA) Inc, Kane will acquire HSBC Insurance Holdings (Bermuda) Ltd, HSBC Insurance SPC Ltd, the insurance management business and assets of HSBC Bank (Cayman) Ltd, and HSBC Insurance Agency (USA) Inc for a total amount of USD27.5m. The acquisition will be backed by private equity firm CBPE Capital (“CBPE”). Completion of the acquisition is expected to take place on 30 April 2011, subject to regulatory approvals.

HSBC Insurance Management (HIM) is the world’s fourth largest insurance manager and a recognised leader in the field of Insurance Linked Securities (ILS). HIM has an extensive and diverse customer base, which it serves from a global network of offices in Bermuda, Cayman, Guernsey, Malta, New York, South Carolina, Washington DC and Vermont, in addition to being approved to provide insurance management services in six other US States. HIM provides management, administration and structuring support services for: Captives; Cell Companies; Insurance Linked Securities; Insurance and Reinsurance Companies; and Life, Pensions and Investment (LPI) Companies.

Chris Godsmark, Joint Managing Partner of Oakley, said,

“we were delighted to have been able to assist Kane with both the acquisition of HIM and also the financing of the transaction, through its selection of CBPE. When completed, the acquisition will position Kane as the world’s largest independent insurance manager. From an Oakley perspective, we are delighted to have further strengthened our financial services sector experience, as it continues to grow alongside our more established TMT franchise.”

For further information please contact:
Chris Godsmark, Partner
+44 207 766 6900

*Completed by Oakley Capital Corporate Finance

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