Zurich Buys Stake in UK M&A Insurer to Fuel US, Europe Expansion

Zurich Insurance Group has agreed to acquire a minority stake in Icen Risk, a company that specializes in insuring mergers and acquisitions.

The transaction will see Zurich take a “significant minority” in London-based Icen and will help support its growth into North America and large European markets such as Germany, according to a statement Tuesday. The deal for the stake of just under 50% values the company at about £150 million ($194 million), a person familiar with the terms said, asking not to be identified because the figure is not public.

Icen insures companies and private equity firms against breaches of warranties as well as tax and environmental risks related to M&A. The firm was founded in 2018 and has £70 million in gross written premiums.

Take-up of M&A protection has grown over the past decade, a period of rampant dealmaking by private equity firms that was fueled by low interest rates. The protection can help sellers receive more of their proceeds upfront, while offering buyers recourse.

Specialty insurance, which includes M&A but can cover everything from professional indemnity to piracy, was among key growth areas Zurich highlighted in its 2024 investor day. The company last year agreed to buy American International Group’s global travel insurance business, as well as a majority stake in India’s Kotak General Insurance Company Ltd.

Photograph: The Zurich Insurance Group AG’s headquarters in Zurich. Photo credit: Michele Limina/Bloomberg

Topics
Mergers & Acquisitions
USA
Carriers
Europe

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