NSM Insurance Group, a global specialty insurance provider, said it has signed a definitive agreement to sell its US commercial insurance division to New Mountain Capital, an investment firm managing over $55 billion in assets.
The transaction is expected to close within 45 days, subject to regulatory approvals and customary closing conditions. NSM is a portfolio company of Carlyle, a global investment firm, after having been acquired by the latter in 2022.
The agreement includes NSM’s portfolio of 15 niche insurance programs across Property & Casualty, Accident & Health and Reinsurance, along with its retail agency, NSM Insurance Brokers. These programs will form a new independent business entity, which will continue to operate under the NSM name until a new brand is introduced.
“Today, we are excited for this milestone and for New Mountain to help lead the next stage of growth for these well-established specialty insurance brands,” said Geof McKernan, chief executive officer of NSM Insurance. “We are extremely proud of the unique portfolio of programs we have built over the last 35 years that provide a profitable and diversified position in today’s competitive marketplace.”
Houlihan Lokey served as exclusive financial adviser to Carlyle and NSM. Wachtell, Lipton Rose & Katz served as legal counsel to Carlyle and NSM, while Polsinelli served as legal counsel to NSM. Meanwhile, Ardea Partners served as exclusive financial adviser to New Mountain and Simpson Thacher & Bartlett LLP served as its legal counsel.
Upon deal closing, Geof McKernan and Bill McKernan will join the board to support continuity and transition efforts. Aaron Miller, NSM’s chief commercial lines officer, will become CEO of the new entity backed by New Mountain.
Miller has more than 20 years of experience in the property and casualty commercial lines industry. Since joining NSM in 2021, he has played a key role in the growth and transformation of the company’s B2B programs by expanding product offerings, improving operational efficiency and strengthening carrier relationships.
“Today’s announcement signals a new and exciting chapter not just for our team but for our carrier partners, agents and customers,” Miller said. “Through this transaction, we are poised to become an even more formidable industry leader while creating greater value for our team members and key partners.”
Since its founding in 1990, NSM has grown into a global specialty insurance provider with more than $2 billion in premium across over 30 niche insurance programs. More than 20,000 agents nationwide use NSM’s specialized programs to serve their clients’ needs.
Over the past year, NSM Insurance was the one doing the acquisitions.
In May, the specialty insurance provider agreed to acquire InsurEvo, which specializes in personal lines travel insurance. It also acquired managing general agent Strategic Underwriters International and international health insurance manager ISO Student Health Insurance.
Those at Carlyle said that the recent sale transaction would yield a “positive outcome” for the parties involved. “[W]e believe these specialty insurance programs are well positioned for continued success,” said Jim Burr, co-head of financial services at Carlyle, and Jitij Dwivendi, a partner focused on private investments in financial services.
