Specialist Risk Group to be acquired by Warburg Pincus and Temasek in strategic growth move

Specialist Risk Group (“SRG”), a prominent specialist insurance intermediary known for its focus on people and culture, has entered into a definitive agreement for acquisition by Warburg Pincus and Temasek. This partnership is anticipated to bolster SRG’s trajectory towards further growth and expansion. The closing of the acquisition is contingent upon satisfying customary conditions, including regulatory approvals. Importantly, SRG’s management team will continue to play a significant role, investing alongside Warburg Pincus and Temasek and retaining a substantial stake in the company.

SRG’s Growth and Development Under Current Leadership

Since its inception in January 2020 under the leadership of Group CEO Warren Downey and Group Deputy CEO Lee Anderson, SRG has demonstrated impressive growth. The company now boasts over 600 employees and handles premiums in excess of £1 billion annually. SRG’s rapid expansion has been fueled by a combination of organic growth and strategic investments and acquisitions, establishing it as a leading entity in the specialist insurance sector.

Support and Future Prospects with New Partnerships

Warburg Pincus and Temasek, both globally recognized investors, are set to support SRG’s strategic growth initiatives. James O’Gara, Managing Director at Warburg Pincus, commented on the acquisition: “We’ve been following SRG’s progression over the past few years with keen interest and are delighted to partner with the business and its very talented team on their next stage of growth. As active and experienced investors into insurance businesses globally, we believe SRG has all the right ingredients – talent, capabilities, and culture – to build on its position as a true standout amongst European and international intermediaries. We look forward to working with the team and Temasek to help realise that potential.”

Warren Downey, SRG Group CEO, expressed enthusiasm about the new partnership: “We are thrilled to be partnering with such outstanding investors as Warburg Pincus and Temasek. They are ideal partners who will provide the support and firepower we need as we embark on the next exciting stage of our growth journey.”

Acknowledgment of Previous Partnerships

The transition comes after a successful partnership with HGGC, which according to SRG has significantly contributed to the company’s current success. HGGC expressed pride in the accomplishments and milestones achieved during their collaboration with SRG.

Advisors and Future Expectations

The acquisition process was supported by several advisors: Evercore and Kirkland and Ellis for SRG, Macquarie Capital and Freshfields Bruckhaus Deringer for Warburg Pincus, and Liberty Corporate Finance and Eversheds for management. As SRG moves forward with its new partners, the focus remains on leveraging the combined strengths to foster growth, enhance capabilities, and expand its market presence, particularly in the specialist insurance sector.