Guy Carpenter & Company, LLC, the risk and reinsurance specialist, announced today that it has entered an agreement to buy all of the issued shares of the London-based reinsurance broker Rattner Mackenzie Limited (RML) from HCC Insurance Holdings, Inc. (HCC).
HCC is a leading specialty insurance group headquartered in Houston, Texas, with offices in the United States, Bermuda, Ireland, Spain and the United Kingdom. RML is a specialty reinsurance broker. RML places HCC’s reinsurance programs in the London market as well as servicing a number of third-party clients.
The transaction is consistent with Guy Carpenter’s strategy to supplement organic growth with targeted acquisitions. Following successful completion of the transaction, Guy Carpenter will become a significant provider of reinsurance intermediary services to HCC. “We have great respect for HCC and its management team and are extremely proud to become a major trading partner as a result of this transaction,” said Peter Zaffino, President and Chief Executive Officer of Guy Carpenter. “The acquisition of RML is further demonstration of our strategy to build our capabilities in the specialty sector.”
“This transaction will enable HCC to focus on its core businesses while enabling RML to develop its business proposition in conjunction with Guy Carpenter, which we believe to be an ideal home for RML,” said John N. Molbeck Jr., President and Chief Executive Officer of HCC Insurance Holdings, Inc. “We consider Guy Carpenter to be a premier reinsurance intermediary and we are delighted to further our trading relationship with them as a result of this transaction.”
It is expected that the transaction will close in October 2009, following receipt of regulatory approvals and satisfaction of other closing conditions. Terms of the transaction have not been disclosed. Lexicon Partners (US) LLC acted as financial advisor to Guy Carpenter in relation to the transaction, and Freshfields Bruckhaus Deringer LLP acted as legal counsel.
Forward-looking statements contained in this press release are made under “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 and involve a number of risks and uncertainties. The types of risks and uncertainties, which may affect the Company are set forth in its periodic reports filed with the Securities and Exchange Commission.
