CONSHOHOCKEN, Pa. — NSM Insurance Group, a global specialty insurance provider, announced today that it has signed an agreement to sell its U.S. commercial insurance division to New Mountain Capital, a growth-oriented investment firm. The transaction is anticipated to be finalized within the next 45 days, pending regulatory approvals and customary closing conditions.
The agreement encompasses NSM’s diverse portfolio of 15 market-leading niche insurance programs across Property & Casualty, Accident & Health, and Reinsurance. It also includes NSM Insurance Brokers, the company’s retail agency. These programs will become a new, independent business entity and will continue to operate under the NSM brand until a rebranding is complete.
“We are excited about this milestone and for New Mountain to help lead the next stage of growth for these well-established specialty insurance brands,” stated Geof McKernan, CEO of NSM Insurance Group. “We have complete confidence in New Mountain’s expertise to drive NSM forward.”
Robert Mulcare, Managing Director at New Mountain Capital, added, “The NSM team has built an unparalleled specialty insurance distribution platform. We are delighted to partner with them and build the business into the leading independent commercial insurance MGA business in the U.S.”
Since its founding in 1990, NSM has grown into a global specialty insurance provider with over $2 billion in premium across 30+ niche insurance programs. More than 20,000 agents nationwide rely on NSM’s specialized insurance programs.
Carlyle, the global investment firm that owns NSM, said in a statement that the deal represents a positive outcome. “Carlyle is proud to have supported NSM’s significant growth,” said Jim Burr, Co-Head of Financial Services at Carlyle.
Upon the acquisition’s closing, Geof McKernan and Bill McKernan will join the board of directors to ensure a smooth transition. Aaron Miller, NSM’s Chief Commercial Lines Officer, will become the new entity’s Chief Executive Officer.
Miller said, “Today’s announcement signals a new and exciting chapter not just for our team but for our carrier partners, agents and customers. Through this transaction, we are poised to become an even more formidable industry leader.
Houlihan Lokey served as the exclusive financial advisor to Carlyle and NSM, while Wachtell, Lipton, Rosen and Katz provided legal counsel to Carlyle and NSM. Polsinelli acted as legal counsel to NSM. Ardea Partners served as an exclusive financial advisor to New Mountain, and Simpson Thacher & Bartlett LLP acted as its legal counsel.
For those seeking more information about NSM’s insurance programs, visit nsminc.com.
