M&A

Selling investor Zimmer said the deal was concluded at a premium to book value, but no numbers were disclosed.

In the second part of our themes for 2024 outlook, we explore how fear of missing out in cat reinsurance is still contrasting with an upstreaming of risk that is creating fallout for primary insurers, while momentum in facilitisation and ESG continues.

In the first section of our two-part outlook for 2024, we explore why macro-economic concerns are taking a step back, though casualty pricing micro-cycles highlight ongoing caution.

The deal’s consideration consisted of a cash payment of $119mn and the 13.5% equity interest that Enstar held in Northshore, the parent of Lloyd’s underwriter Atrium.

The deal follows this publication’s report that the Bank of America-run sale process of Castel was drawing robust interest.

The CEO also disclosed that the break fee on the takeover is $250mn.

The deal is expected to close in mid-2024 and will be funded by $7bn of cash and $6.4bn of Aon stock.

The acquisition was “amongst the most significant” the broker has made in Continental Europe, according to Howden.

CVC funds will invest into Dale to support business growth, which will result in CVC acquiring a majority stake in the business, the companies said.

It is understood that AUB’s investment in Mexbrit includes the broker’s marine-focused MGA subsidiary Forte Underwriters.

Potential suitors have been asked to bid off adjusted Ebitda of ~£40mn.

The deal is the latest in a wave of European broker consolidation.