18 January 2021USA analysis

TowerBrook and Further Global agree to acquire ProSight Global

TowerBrook Capital Partners and Further Global Capital Management have agreed to acquire ProSight Global, the specialty and captive insurance company, in an all-cash transaction valued at approximately $586 million.

The private equity companies signed a definitive merger agreement that will see them acquire all of ProSight Global’s outstanding shares of common stock.

Upon closing, Jonathan Ritz will become ProSight’s chief executive officer, with the current president and chief executive Larry Hannon remaining as president.

Ritz has previously served as president of Aspen Insurance Holdings, chief operating officer of Validus Holdings and chief executive officer of Validus Specialty.

The acquisition is expected to close in Q3 2021 and is subject to customary closing conditions, including the receipt of required regulatory approvals, and the completion of a reinsurance transaction with Enstar.

The agreement will see ProSight stockholders receive $12.85 per share of common stock, representing a 42 percent premium to the closing share price as on September 23, 2020, the last trading day prior to media reports of the deal.

ProSight is a property and casualty insurance company that was founded in 2009. It writes a mix of admitted and non-admitted specialty lines of business in all 50 states, and expanded into the captive insurance market in January 2020.

Ritz said: "Increased frequency and magnitude of natural catastrophes, social inflation, and the COVID-19 crisis have contributed to substantial market dislocations, and ProSight represents a quality platform that is well-positioned to capitalise on this environment.”

Hannon said the deal will fund investments in talent and technology that will improve ProSight’s offerings to distribution partners and customers.