Kane group, a provider of specialist risk and insurance management services, has agreed to acquire the operations of HSBC Insurance Management (HIM), for $27.5m.
Under this agreement, with HSBC Bank Bermuda, HSBC Bank Cayman and HSBC Insurance Agency (USA), Kane will acquire HSBC Insurance Holdings (Bermuda), HSBC Insurance, the insurance management business and assets of HSBC Bank (Cayman), and HSBC Insurance Agency (USA).
Kane said that the acquisition will be backed by CBPE Capital, a private equity firm.
HIM serves from a global network of offices in Bermuda, Cayman, Guernsey, Malta, New York, South Carolina, Washington DC and Vermont, in addition to being approved to provide insurance management services in six other US States.
HIM offers management, administration and structuring support services for: captives; cell companies; insurance linked securities; insurance and reinsurance companies; and life, pensions and investment (LPI) companies.
As part of the acquisition, Kane has offered employment to all HIM staff.
HSBC will work closely with Kane to ensure a smooth integration of HIM into the group.
Kane CEO Stephen May said this agreement is a major step forward in the overall growth strategy for Kane. The acquisition will position Kane as the world’s largest independent insurance manager and clearly supports aim of creating a global, domicile-neutral platform from which to offer independent, expert advice.
The transaction is subject to regulatory approvals and is expected to close on 30 April 2011.