Artex Risk Solutions has agreed to buy Kane’s captive management and insurance-linked securities administration business for an undisclosed sum.
The deal will see Kane’s Robert Eastham, Linda Haddleton, Ann West and their associates continue to operate from their locations in Bermuda, the Cayman Islands, Guernsey, South Carolina and Vermont.
The transaction is expected to close at the end of March.
Commenting on the deal, Simon Hinshelwood, group chief executive of Kane, said: “Our view at Kane is that the industry as a whole is over supplied and needs consolidation for its long-term future stability and profitability. Kane was approached by a number of parties over the last six months who shared this view. The board determined that the best way to explore the value of these approaches and to determine what may be the optimum solution for all stakeholders, was to hold a tightly-controlled but small formal process.”
“That process concluded with the board selecting to combine with Artex. Artex was chosen for multiple reasons, but importantly for our staff and clients because of its culture, its distribution reach, its strength in Europe and the USA, and the growth opportunities we believe it affords the Kane team.”
David McManus, president and CEO of Artex Risk Solutions, said of the newly combined entity: “We believe we’re the fastest growing and most diverse insurance manager in the industry.”
“This exciting combination of operations and capabilities allows Artex to consolidate its position amongst the top three insurance management service providers in the world, with over 1,400 customers, served through over 900 risk bearing entities in 27 domiciles and 370 employees, providing our clients and business referral networks with substantially greater scale and resource breadth.”
Artex’s operations in Bermuda and Cayman will combine into Kane’s under the respective leadership of Eastham and Haddleton who, together with Kane’s Guernsey team, will report into Nick Heys, CEO of Artex International.
Kane’s US operations in South Carolina and Vermont will merge into Artex’s US business under the leadership of Jennifer Gallagher, president of Artex North America.
Kane LPI Solutions and its subsidiaries—the firm’s third-party administration and fund administration business for the life, pension and investment market—was not involved in the sale process.
