CBL completes NZ$150m strategic acquisition of French specialist insurer

Credit and financial risk re/insurer CBL Corporation has completed its NZ$150 million ($104.4 million) strategic acquisition of Securities and Financial Solutions (SFS) and its claims management operation IMS Expert Europe (IMS).

SFS is a French specialist producer of construction-sector insurance and CBL’s largest single client.

Luxembourg's Commissariat aux Assurances granted the regulatory approval for the transaction in October 2016.

As part of the deal, funded by a combination of cash, bank and vendor funding, SFS chief executive officer (CEO) Antoine Guiguet and IMS CEO Gérard Marichy will together maintain a 29 percent shareholding in SFS and IMS, with CBL holding the balance of 71 percent.

“I am pleased to welcome SFS and IMS into the CBL Group and I am excited about the possibilities for the future, said CBL’s managing director Peter Harris.

“The acquisition of SFS is expected to provide important strategic benefits for CBL including the removal of distribution concentration risk that SFS represented being CBL’s largest client, the ability to further vertically integrate the Group and to consolidate CBL’s market position in Europe, particularly in France, currently our largest European market.”

Patrice Gilles, owner and chairman of SFS Group, added: “CBL has been an important partner to SFS over the years and together we have developed a strong market position. That is why I see CBL as the natural party to further develop opportunities and grow the business alongside SFS CEO Antoine Guiguet and IMS CEO Gérard Marichy.

“My future role as an ambassador of SFS will allow me to continue my support for the business in a non-executive capacity. I am delighted we have now consummated the SFS and CBL partnership today.”

Guiguet commented: “We have worked closely with CBL for many years and the opportunity to build an even closer relationship opens up many exciting prospects to continue our growth under CBL ownership.
“The recent upgrade in CBL Insurance Limited’s AM Best rating to A- (Excellent) in particular presents opportunities to make SFS and CBL into even more significant players in the French construction insurance market. We look forward to working with CBL and helping them achieve their long-term goals for CBL and SFS.”