Bridgepoint has agreed to acquire Hanseatic Broking Center, a German operator of an insurance distribution platform, marking an exit for Preservation Capital Partners.
The deal values HBC at €700 million (about $807 million), according to a Bloomberg report.
HBC, formed through a merger of three specialty insurance brokers, operates in Germany’s insurance market covering small and medium-sized enterprises. Preservation bought the business for an undisclosed amount in 2022 and specializes in niche segments such as marine, travel and cyber insurance.
During the holding period, the Hamburg-based company quadrupled its EBITDA by making 15 bolt-on deals. These deals included travel insurance provider LTA, Schomacker, a yacht insurer, and Schinner, a construction industry insurance broker.
HBC plans to use the new investment to expand its presence, particularly in German-speaking countries, by combining its commercial insurance brokerage operations with its managing general agent activities.
Germany’s SME business insurance sector is the biggest in Europe, generating about €37 billion in gross written premiums annually, and €5 billion in broker commissions each year. However, the market remains fairly fragmented.
HBC is a managing general agent, a specialized type of insurance intermediary that accounts for about 5% of total insurance distribution in Germany. However, this form of distribution is forecast to grow roughly 15% a year as insurers increasingly outsource underwriting.
This is Bridgepoint‘s fourth deal this month. The UK-listed firm also bought business productivity software maker Beekeeper, French wealth management consultancy Finzzle Groupe, and UK dentistry provider Mydentist.
It has also made two exits: Spanish sports management and media company Dorna Sports, and Dutch caterer Vermaat, in a transaction valued at €1.5 billion.
Featured image by Jenna O’Malley/PitchBook News
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