Anglo-French private equity firm Milestone Capital Partners has completed the Buy-In Management Buy-Out (BIMBO) of insurance vehicle Compre Holdings.
Compre is focused on acquiring European insurance companies and portfolios that are in “run-off”, or have been discontinued by their parent.
The company was set up in 1992 and had assets of £23m (€27m) as of December last year. Its recent acquisitions have included WI Insurance (formerly WASA) and Stockholm Re run-off portfolios in Sweden, and the London and Leith Insurance Company in London.
Milestone says it believes there will be more opportunities to buy up run-off portfolios from large insurers as a result of regulatory changes, such as the Solvency II rules which require them to consolidate their capital base.
“The market continues to offer significant opportunities as a result of regulatory changes and we look forward to announcing new bolt-on acquisitions shortly,” said Philip Conboy, a partner at Milestone.
The firm is acquiring a majority stake in the company from the three current owners; Mikko Sinko, Nick Steer, and Ken Davies. Both Sinko and Steer will roll-over a significant proportion of their proceeds with Nick Steer remaining with as CEO and Mikko Sinko staying on the board as a non-executive director. They will be joined by two Milestone executives, Will Bridger and Rhydian Williams.
Milestone is a small firm with seven investment professionals based in London and Paris and €300m under management. Compre is the sixth company in its current portfolio.
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