Willis Towers Watson sells Miller Insurance to Cinven and GIC

Re/insurance brokerage Willis Towers Watson has reached an agreement to sell its wholesale arm Miller Insurance Services to international private equity firm Cinven and Singapore’s sovereign wealth fund GIC.

Earlier in February this year, Willis announced its plan to consider “strategic alternatives" for Miller, including a sale.

Miller operates across a number of specialist areas, including marine, energy, credit and political risks, delegated authorities, professional risks, property, casualty, sports and entertainment and re/insurance.

The London-listed specialist broker places c. £2 billion worth of premiums annually through its operations in the UK, Lloyd’s and internationally. The company was founded in 1902 and acquired by Willis Towers Watson in 2016.

Both Cinven and GIC believe Miller is an "attractive investment opportunity" with high-quality, cash generative business model, strong brand equity and a recurring revenue base; strong position in the wholesale insurance markets; expertise across its specialist areas; and robust performance through the COVID-19 pandemic and prior downturns.

The companies also noted that the underlying insurance market is forecast to continue growing in line with GDP, with potential additional upside for specialty insurers, further supported by short-term rate hardening.

The transaction is expected to complete in the first quarter of 2021, subject to regulatory approval.

Greg Collins, chief executive of Miller, said: “We are very pleased to be partnering with Cinven and GIC, whose knowledge and insurance investment expertise will enormously support our business as we enter this important next phase of growth. We are excited about bringing together our combined expertise to bolster our best in class client service and solutions and strengthen Miller’s position in our core activities.

"This includes making incremental targeted, strategic investments as we look to realise our ambition of becoming the leading independent specialist (re)insurance broking firm. I would also like to take this opportunity to thank WTW for their support over the last five years.”

The deal represents the first investment from Cinven’s new financial services sector-focused strategy, which it said will be looking at similar long-term opportunities across Europe.

Luigi Sbrozzi, partner of Cinven, said: “Cinven is delighted to be making this investment in Miller alongside GIC. Miller is a highly attractive, resilient specialist insurance business with strong long-term growth opportunities across all of its segments and a history of consistent growth through various economic cycles. We see opportunities both organically, by recruiting new specialist brokers, and through incremental M&A over time. Miller also offers a scalable platform, particularly internationally, with associated benefits for clients as the business develops and expands over the long-term. We believe that independent ownership is the right model to really accelerate the company’s growth.”

Yong Cheen Choo, chief investment officer of private equity, GIC, added: “Miller is one of the top and most established wholesale brokers with highly respected franchises in areas such as marine & energy, sports & entertainment, and cargo. We are pleased to partner with Cinven and look forward to supporting Greg Collins and his team to seize future expansion opportunities for Miller. As a long-term investor, we are confident in the growth potential of the specialty insurance sector, and of Miller within it.”