NSM Insurance Group, a global specialty insurance provider, has announced it has signed a definitive agreement to sell its US commercial insurance division. The buyer is New Mountain Capital, an investment firm with over $55 billion in assets under management.
The transaction, expected to close within 45 days pending regulatory approvals and standard closing conditions, includes NSM’s portfolio of 15 niche insurance programs. These programs span Property & Casualty, Accident & Health, and Reinsurance, along with its retail agency, NSM Insurance Brokers.
These programs are slated to form a new independent business entity, which will continue operating under the NSM name until a new brand is introduced.
“Today, we are excited for this milestone and for New Mountain to help lead the next stage of growth for these well-established specialty insurance brands,” said Geof McKernan, chief executive officer of NSM Insurance. “We are extremely proud of the unique portfolio of programs we have built over the last 35 years that provide a profitable and diversified position in today’s competitive marketplace.”
Houlihan Lokey served as the exclusive financial advisor to Carlyle and NSM. Wachtell, Lipton, Rose & Katz provided legal counsel to Carlyle and NSM, while Polsinelli served as legal counsel to NSM. Ardea Partners was the exclusive financial advisor to New Mountain, and Simpson Thacher & Bartlett LLP served as its legal counsel.
Leadership Changes
Upon the deal’s closing, Geof McKernan and Bill McKernan will join the board to support continuity and transition efforts. Aaron Miller, NSM’s chief commercial lines officer, will become CEO of the new entity backed by New Mountain. Miller has more than two decades of experience in the property and casualty commercial lines industry. Since joining NSM in 2021, he has been instrumental in growing and transforming the company’s B2B programs by expanding the product offerings, improving operational efficiency, and strengthening relationships with carriers.
“Today’s announcement signals a new and exciting chapter not just for our team but for our carrier partners, agents and customers,” Miller stated. “Through this transaction, we are poised to become an even more formidable industry leader while creating greater value for our team members and key partners.”
Since its founding in 1990, NSM has evolved into a global specialty insurance provider with over $2 billion in premium spanning more than 30 niche insurance programs. Over 20,000 agents across the nation utilize NSM’s specialized programs to serve their clients’ needs.
Recent Activity
In the preceding year, NSM Insurance focused on acquisitions. In May, the specialty insurance provider agreed to acquire InsurEvo, which specializes in personal lines travel insurance. It also acquired the managing general agent Strategic Underwriters International and international health insurance manager ISO Student Health Insurance.
Carlyle representatives indicated that the recent sale transaction would yield a “positive outcome” for all involved parties.
“[W]e believe these specialty insurance programs are well positioned for continued success,” said Jim Burr, co-head of financial services at Carlyle, and Jitij Dwivendi, a partner focused on private investments in financial services.
