White Mountains unit buys gig workers insurer for £120m

White Mountains Insurance Group is acquiring UK-based specialty insurer Kingsbridge Group, which provides insurance services to contingent workforce of skilled contractors, freelancers and gig workers.

The Hanover-based firm's subsidiary NSM Insurance Group has entered into a definitive agreement to buy Kingsbridge for approximately £120 million.

The transaction consideration consists of approximately £103 million in upfront cash plus additional target earn-out consideration of approximately £17 million that is contingent on Kingsbridge achieving certain EBITDA growth objectives through January 2022.

Kingsbridge has offices in Tewkesbury, London, Liverpool, Leicester and Guernsey. The firm also provides specialty broking services to large corporates in the utility, recruitment and other industries through Kingsbridge Insurance Brokers and its Larsen Howie and Dinghy brands.

The deal is subject to regulatory approval in the UK and Guernsey, and expected to close in the second quarter of 2020.

The sale marks a strong exit for UK private equity firm Dunedin, which backed Kingsbridge in May 2016. Dunedin had been investing in fast growing niche insurance businesses. Most recently it backed the MBO of niche insurance broker Acquis in May 2019, in order to drive its international growth.

James Twining, Kingsbridge Group CEO said: “Kingsbridge has grown to become one of the leading players in the new, flexible economy. Dunedin has played a major role in supporting our development over the last three years, providing capital and insight as an experienced financial services investor. We are delighted to be joining NSM, who share both our values and our vision for how the world of work is changing and the significant opportunities that lie ahead. With the benefits of their investment and experience, we look forward to enhancing our offering to clients and accelerating the next stage of our journey both in the UK and internationally.”