J. Greenberg's Firm Buys Conning

NU Online News Service, June 16, 1:10 p.m. EDT

Aquiline Capital Partners LLC, the New York-based private equity firm headed by Jeff Greenberg, announced today it has acquired Conning & Co. in Hartford, Conn. for an undisclosed price.

The firm said the purchase of the company from Swiss Reinsurance Company Ltd. will include Conning's U.S. and European businesses. Conning also has offices in Dublin and London.

Aquiline said Conning is currently the largest independent insurance asset manager and the third largest insurance general account manager globally, with approximately $70 billion of general account assets under management and $100 billion of total assets under contract.

Founded in 1912, Conning provides asset management, insurance research and strategic consulting. The firm also provides expertise in the alternative investment industry and a specialty in the clean energy sector.

Aquiline said its investment will allow Conning to strengthen its infrastructure, add to its services, acquire talent and pursue strategic opportunities.

The announcement said Swiss Re, which had purchased Conning in 2001, will maintain a strong relationship with Conning as a recipient of its services.

Swiss Re, after an $864 million loss in 2008, reported a first-quarter return to profitability this year albeit with a 76 percent drop in net income.

Swiss Re spokesperson Alayna Francis said the Zurich-based firm was selling the company as part of a strategy to focus on core businesses with the best earnings potential and to simplify its business organization. The firm said last month it planned to reorganize to reduce costs after previously announcing the elimination of 1,150 jobs and naming a new chief operating officer.

"Aquiline brings a wealth of operational expertise in both insurance and investment management, as well as an extensive relationship network," said Salvatore Correnti, CEO of Conning.

He called the transaction "the ideal partnership to support our plans to grow the Conning platform by adding to our skills and products to benefit our current and future clients. We are excited by the prospects for Conning under Aquiline's ownership and the opportunity to participate directly in the successful growth of our business."

Mr. Greenberg, a former CEO of Marsh & McLennan Co., said, "Conning has an excellent reputation with a long-standing presence in the insurance industry and a leading market position."

He noted that "Conning has delivered superior insight and consistent investment returns to its clients, particularly during the recent disruptions in global credit markets. We look forward to working with management to expand Conning's position as a premier specialty insurance asset management and service provider."

Aquiline said it was advised in the acquisition by SFRi, LLC, a boutique merchant banking firm serving the insurance and risk management industries. Sullivan & Cromwell LLP acted as legal counsel and Berkshire Capital Securities LLC acted as financial advisor.