TowerBrook Capital and Further Global to acquire ProSight Global for $586m

TowerBrook Capital Partners and Further Global Capital Management through their affiliates have signed an all-cash deal worth around $586m to acquire ProSight Global, US-based specialty insurance company.

Established in 2009, ProSight Global is based in Morristown, New Jersey. The company is engaged in offering property and casualty insurance solutions.

ProSight Global is said to write a diverse mix of admitted and non-admitted specialty lines of business in all 50 states in the US.

The specialty insurance company is a fully licensed and fully rated turnkey platform. It is said to have various long-standing and successful distribution relationships, a well-developed technology platform, and also scalable infrastructure.

Upon completion of the deal, Jonathan Ritz will become its CEO, while the current president and CEO of ProSight Global – Larry Hannon will continue as its president.

TowerBrook Capital and Further Global to acquire specialty insurance company ProSight Global for $586m

Jonathan Ritz said: “This is a very exciting and challenging insurance market which is undergoing significant changes in distribution, pricing, capital management, and capacity exiting across many lines of business.

“Increased frequency and magnitude of natural catastrophes, social inflation, and the COVID-19 crisis have contributed to substantial market dislocations, and ProSight represents a quality platform that is well-positioned to capitalize on this environment. I am looking forward to working with the Company’s many talented underwriters, employees, and distribution partners to build a market-leading specialty insurance company.”

As per the terms of the deal, ProSight Global’s shareholders will get $12.85 per share.

TowerBrook Capital Partners, which is an investment management firm, will acquire a majority stake in the specialty insurance company, while Further Global Capital Management, which is a private equity firm, will be a minority co-investor.

Larry Hannon said: “This transaction and the new partnership with TowerBrook and Further Global will expand ProSight’s underwriting capabilities and fund investments in talent and technology that will improve our offerings to distribution partners and customers.

“Since our founding 12 years ago, our employees have dedicated themselves to creating a differentiated specialty insurance company. I’m very proud of what we created, thank them for their dedication, and very much look forward to working closely with Jonathan as we write ProSight’s next chapter as a private company.”

The deal, which is subject to the necessary regulatory approvals and other customary closing conditions, is anticipated to be wrapped up in Q3 2021. Additionally, it will be subject to the closing of a reinsurance deal between ProSight Global and Enstar that is said to help in repositioning the former’s capital in support of future growth.