NU Online News Service, March 11, 12:50 p.m. EST
Kane, which provides specialist risk and insurance management services, announced today it has signed an agreement to acquire the insurance management operations of HSBC for $27.5 million.
Under the agreement—signed with HSBC Bank Bermuda Ltd., HSBC Bank Cayman Ltd. and HSBC Insurance Agency (USA) Inc.—Kane will acquire HSBC Insurance Holdings (Bermuda) Ltd., HSBC Insurance SPC Ltd., the insurance management business and assets of HSBC Bank (Cayman) Ltd., and HSBC Insurance Agency (USA) Inc.
The acquisition will be backed by private-equity firm CBPE Capital. Completion of the acquisition is expected to take place on April 30, subject to regulatory approvals, Kane said.
HSBC Insurance Management (HIM) is the world's fourth-largest insurance manager and a recognized leader in the field of insurance-linked securities (ILS), Kane noted. The company said it provides management, administration and structuring support services for captives, cell companies, insurance-linked securities, insurance and reinsurance companies, as well as life, pension and investment companies.
HSBC said it will work closely with Kane to ensure a smooth integration of HIM into the group. As part of the acquisition, Kane has offered employment to all HIM staff.
Stephen May, CEO of Kane, said in a statement that the acquisition will "position us as the world's largest independent insurance manager and clearly supports our aim of creating a global, domicile-neutral platform from which to offer our independent, expert advice."
Roy Fellowes, CEO of HIM, said, "Kane and HIM have a number of synergies, not only in relation to the products and services we provide, but also in terms of the culture and approach of the two organizations."
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