HSBC sells off insurance management ops to Kane – The Royal Gazette | Bermuda News, Business, Sports, Events, & Community

Log In

Reset Password

HSBC sells off insurance management ops to Kane

HSBC's insurance management operations have been acquired by Kane Group, a provider of specialist risk and insurance management services, for $27.5 million in cash, creating the world's largest independent insurance manager.

HSBC Bank Bermuda Ltd., HSBC Bank (Cayman) Ltd., and HSBC Insurance Agency (USA) Inc. have signed agreements with Kane Group for the sale of HSBC Insurance Holdings (Bermuda) Ltd., HSBC Insurance SPC Ltd. and the insurance management business and assets of HSBC Bank (Cayman) Ltd. and HSBC Insurance Agency (USA) Inc.

The deal is expected to be completed in the second quarter of 2011 subject to regulatory and other approvals.

As part of the transaction, Kane will retain all HSBC staff employed by the business and the two companies will work together to ensure a smooth transition, entering into a transitional services agreement under which services will be provided by HSBC to Kane to allow uninterrupted client service. HSBC and Kane are also co-operating on the transfer of certain client agreements to Kane.

Philip Butterfield, CEO of HSBC in Bermuda, said: “We are delighted with the new arrangements for our insurance management business. We look forward to hearing about its continued success under its new ownership.”

The acquisition will be backed by private equity firm CBPE Capital.

HSBC Insurance Management (HIM) is the world's fourth largest insurance manager and a recognised leader in insurance linked securities with an extensive and diverse customer base, which it serves from its offices in Bermuda, Cayman, Guernsey, Malta, New York, South Carolina, Washington DC and Vermont, in addition to being approved to provide insurance management services in six other US States.

The company provides management, administration and structuring support services for captives, cell companies, insurance linked securities; re/insurance companies and life, pensions and investment companies.

Stephen May, CEO of Kane, said: “This agreement is a major step forward in the overall growth strategy for Kane. The acquisition will position us as the world's largest independent insurance manager and clearly supports our aim of creating a global, domicile-neutral platform from which to offer our independent, expert advice. We welcome the new employees and customers of HIM into our group and look forward to building and developing long-term successful relationships.”

Roy Fellowes, CEO of HIM, said: “We are excited about becoming a part of the Kane Group and delighted they have embraced, and are committed to supporting and growing all current HIM business lines. Kane and HIM have a number of synergies, not only in relation to the products and services we provide, but also in terms of the culture and approach of the two organisations. These synergies will enable a successful transition and ensure that we maintain the high levels of service which our customers expect.”

Clive James, a director of Kane, said: “The acquisition of HIM provides a strong fit for Kane. We have established an excellent reputation in the provision of alternative risk transfer services, and are keen to bolster our activities in all of the sectors in which HIM presently operates. The company provides a large and secure base in a number of key insurance territories coupled with a significant presence in traditional captives, and the specialist ILS and LPI markets.”

HSBC Bermuda CEO Philip Butterfield

You must be Registered or to post comment or to vote.

Published March 14, 2011 at 10:00 am (Updated March 14, 2011 at 9:59 am)

HSBC sells off insurance management ops to Kane

What you
Need to
1. For a smooth experience with our commenting system we recommend that you use Internet Explorer 10 or higher, Firefox or Chrome Browsers. Additionally please clear both your browser's cache and cookies - How do I clear my cache and cookies?
2. Please respect the use of this community forum and its users.
3. Any poster that insults, threatens or verbally abuses another member, uses defamatory language, or deliberately disrupts discussions will be banned.
4. Users who violate the Terms of Service or any commenting rules will be banned.
5. Please stay on topic. "Trolling" to incite emotional responses and disrupt conversations will be deleted.
6. To understand further what is and isn't allowed and the actions we may take, please read our Terms of Service
7. To report breaches of the Terms of Service use the flag icon