New platform focuses on P&C and life insurer acquisitions and demutualizations
Constellation Insurance Holdings, founded by Anurag Chandra, former CEO of Prosperity Life Insurance Group, announced today that it has partnered with Caisse de dépôt et placement du Québec (CDPQ) and Ontario Teachers’ Pension Plan (Ontario Teachers’) and raised US$500 million in initial capital from them as founding investors. CDPQ and Ontario Teachers’ are two of North America’s largest institutional investors and together manage over CA$500 billion in net assets as of June 30, 2019.
“Constellation plans to invest in stock and mutual insurers based in North America that are seeking growth capital, stronger ratings, scale efficiencies and equity incentives while maintaining their independent management structure, brand identity, operations and entrepreneurial culture,” said Anurag Chandra, Founder, Chairman & CEO of Constellation. “Constellation’s target market and value proposition are differentiated versus other insurance platforms that focus on either asset accumulation, legacy block reinsurance or have shorter term investment horizons, which incentivize substantial expense reductions and limit investments in organic new business growth.”
“We believe this new partnership, which allies a unique combination of expertise to a flexible investment horizon, will provide a source of competitive advantage for Constellation” said Stephane Etroy, Executive Vice-President and Head of Private Equity at CDPQ. “We look forward to working with insurers’ management teams to support their existing operations and to identify new avenues for growth.”
“We are delighted to partner alongside CDPQ with Anurag Chandra, who has a distinctive and successful track record in the insurance sector including acquisitions, demutualizations, turnarounds and rehabilitations. As CEO of Prosperity, he built an attractive, high growth insurance platform that generated exceptional investor returns and favorable outcomes for all key stakeholders,” said Jane Rowe, Executive Managing Director, Equities, at Ontario Teachers’. “We expect this partnership with Constellation and CDPQ to create significant value for our stakeholders.”
Source: Company Press Release