NSM Insurance Group Announces Sale of US Commercial Division
NSM Insurance Group, a global specialty insurance provider, has announced a definitive agreement to sell its US commercial insurance division to New Mountain Capital. The financial firm manages over $55 billion in assets. This transaction is expected to close within 45 days, pending regulatory approvals and customary closing conditions.
NSM Insurance Group is currently a portfolio company of Carlyle, a global investment firm that acquired NSM in 2022. The agreement includes NSM’s portfolio of 15 niche insurance programs, spanning Property & Casualty, Accident & Health, and Reinsurance, as well as its retail agency, NSM Insurance Brokers.
These programs will become a new independent business entity. The new entity will continue to operate under the NSM name until a new brand identity 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.”
Financial advising for the deal was handled by Houlihan Lokey for Carlyle and NSM, and Ardea Partners for New Mountain. Legal counsel was provided by Wachtell, Lipton, Rose & Katz for Carlyle and NSM, Polsinelli for NSM, and Simpson Thacher & Bartlett LLP for New Mountain.
Leadership Transition Anticipated
Following the deal’s completion, Geof McKernan and Bill McKernan will join the board to support continuity and transition efforts. Aaron Miller, NSM’s chief commercial lines officer, will assume the role of CEO of the new entity backed by New Mountain. Miller brings over two decades of experience in the property and casualty commercial lines industry. Since joining NSM in 2021, Miller has been instrumental in growing and transforming the company’s B2B programs, leading to expanded product offerings, improved operational efficiencies, and stronger 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 Insurance has grown into a global specialty insurance provider, generating over $2 billion in premium across more than 30 niche insurance programs. The company’s specialized programs are utilized by over 20,000 agents throughout the nation to serve their clients.
In the past year, NSM Insurance has been focused on acquisitions. The specialty insurance provider agreed to acquire InsurEvo, which specializes in personal lines travel insurance, in May. Additionally, it acquired managing general agent Strategic Underwriters International and international health insurance manager ISO Student Health Insurance.
Carlyle representatives expressed that the recent sales transaction would result in a “positive outcome” for all parties involved.
“[W]e believe these specialty insurance programs are well positioned for continued success,” stated Jim Burr, co-head of financial services at Carlyle, and Jitij Dwivendi, a partner focused on private investments in financial services.
