Investment firm Spencer Capital is set to acquire USA Risk Group, the world’s largest independent captive insurance manager.
The deal is subject to customary closing requirements and regulatory approval, and is expected to close during the first quarter of 2015.
Founded in 1981, USA Risk currently serves over 300 clients, holding $9 billion in assets under management.
USA Risk will retain its name and H. Lincoln Miller, currently group chairman of USA Risk, will join the board of directors of Spencer Capital. Gary Osborne, currently president of USA Risk, will join the board of directors of Spencer Re.
Spencer Re, a reinsurance subsidiary of Spencer Capital, and USA Risk are expected to be mutual beneficiaries from cross-selling opportunities.
“USA Risk’s unparalleled reputation and leadership position in the captive industry is a welcomed addition to Spencer Capital Holdings as we seek to assemble a robust platform of leading and value-driven companies in the insurance and financial services industries,” said Ken Shubin Stein, chairman of Spencer Capital.
Miller said: “We have been approached by many suitors over the years, but until we met the team at Spencer Capital, we did not view a transaction as being in the best interests of our customers and employees.
“Ken Shubin Stein and his team embody the same ethos we instil in our employees and we share the same long-term interests for growing USA Risk. This also allows us to maintain our long-held philosophy of independence from conflicts of broker-owned managers.”
Spencer Capital, USA Risk, North America, H. Lincoln Miller, Gary Osborne, Ken Shubin Stein, Insurance