The deal, finalized on January 10, aligns with HGS's strategic growth objectives within the US market, the company said.
Established in June 2021, Falcon was jointly formed by HGS, Craig Landi, and investor Griffin Highline (GH) to serve as HGS' local entry point into the US financial lines market. Now, HGS has acquired the majority of shares previously held by GH, with the specific purchase price undisclosed.
Exclusively operating for HGS, Falcon is anticipated to play a pivotal role in driving HGS's growth in the US market.
Functioning as a comprehensive managing general agency (MGA) specializing in underwriting and claims for the US financial lines segment, Falcon is actively underwriting policies in directors and officers (D&O) liability, professional indemnity (PI), and cyber insurance on behalf of HDI. Falcon provides underwriting services for both admitted and non-admitted company insurers.
The deal with Falcon follows the completion of HDI Global Insurance Company's acquisition of Indiana Lumbermens Mutual Insurance Company, a shell company holding insurance licenses and a treasury listing.
The recent acquisitions bolster HDI Global SE, the parent company overseeing both acquiring entities, in its bid to swiftly enter the surety and fidelity insurance business in the US, in addition to exploring other future opportunities.
“We want to drive significant growth in the US specialty market, attract top-tier underwriting talent, and generate profitable organic growth. The recent increase of our stake in Falcon underlines the importance of the agency for these plans in the US and creates the necessary conditions to take advantage of attractive growth opportunities in a fast-growing market,” said Ralph Beutter, CEO of HGS and board member of HDI Global SE.
Falcon CEO Craig Landi welcomed the move and a strengthening of the relationship between both companies.
“We are very pleased that HDI has increased its shareholding,” he said. “Having such a high-performing global player as HDI on board demonstrates the recognition of Falcon's potential and the confidence in our capabilities.
“This partnership will further drive our ambitious growth targets in the US specialty insurance market and will support Falcon's growth into additional product lines.”
