CBPE Capital LLP (“CBPE”) is pleased to announce that it has exchanged contracts on the sale of Compre Group (“Compre”) to Cinven and British Columbia Investment Management Corporation (“BCI”). The sale is expected to complete in 2021, following the receipt of regulatory approvals.
Terms of the transaction have not been disclosed.
Compre is a leading insurance specialist with over 30 years of experience in the acquisition and management of discontinued and legacy non-life insurance and reinsurance portfolios. The business manages a wide range of insurance classes, from marine through to motor, with operations in Finland, Germany, Malta, Switzerland, Bermuda and the UK.
CBPE invested in Compre in 2015 at a time when the introduction of Solvency II regulations was fuelling an associated increase in the demand for legacy services. Since investing, CBPE has supported the development of a multi-jurisdictional platform with an efficient approach to originating and executing acquisitions and a highly professional approach to claims management. This has included a comprehensive restructuring of the Group’s regional European insurance carrier structure to improve capital efficiency. CBPE has also proactively enhanced the senior management team with the introduction of several new and experienced Board members.
Under CBPE ownership, Compre was able to complete and integrate 21 acquisitions over five years resulting in a fourfold increase in Net Tangible Asset Value.
Will Bridger, CEO of Compre Group, said:
“The business has transformed during CBPE’s investment period and, as an investor, they have encouraged and supported us in realising our growth ambitions and in expanding into new juristictions and new insurance markets. We now have the foundations for significant future growth.”
Mathew Hutchinson and Richard Thompson, Partners at CBPE, said:
“We have enjoyed working with a great management team at Compre. The past five years have seen the business develop and grow significantly, and we are incredibly proud of what has been achieved and the quality of the platform that we have built.”
Following the completion of the sale of Compre, CBPE will have realised 11 of the 13 investments in CBPE Capital Fund VIII generating a 2.5x multiple of invested capital.
The exit continues CBPE’s strong track record of investing in the financial services sector. The realisation of Compre follows the earlier sucessful exits of Xafinity and JTC from Fund VIII. Current investments in the financial services sector include Centralis Group and Perspective Financial Group.
CBPE’s investment in Compre Group was led by Mathew Hutchinson and Richard Thompson with support from Harry Hewlett.
CBPE and the shareholders were advised by Canaccord Genuity (corporate finance), Reed Smith (legal), PwC (Financial and commercial diligence), EY (actuarial diligence) and DLA Piper (legal diligence).
Management were advised by Liberty Corporate Finance (equity terms), DLA Piper (legal) and Capstar (communications).