Report: Hamilton Insurance, valued at $2bn, considers IPO
The house that Brian Duperreault built could be on the market, valued at $2 billion.
Hamilton Insurance Group, which Mr Duperreault founded in 2013, is considering strategic options, including a possible initial public offering or a private sale, it has been reported.
The ten-year-old data and technology-enhanced specialty re/insurer reported a book value of nearly $1.7 billion at the end of December.
The news agency Reuters, citing people familiar with the matter who spoke on condition of anonymity, said Bermudian-based Hamilton has been discussing options with potential advisers, with one source estimating that a transaction could value Hamilton at more than $2 billion.
The consideration of strategic options comes amid growing momentum for deals involving insurance and reinsurance companies.
Global law firm Clyde & Co reported recently that there were 449 completed mergers and acquisitions worldwide in the insurance sector in 2022, up from 418 the previous year, the highest for a decade.
While there is an expectation that 2023 could see the return of big M&A transactions, Global Data is reporting that the global insurance sector in Q1 2023 witnessed deals worth $11 billion, a drop of 57 per cent from the $25 billion deal value in Q4 2022.
In terms of deal volume, there was a 16 per cent fall from 307 deals in Q4 2022 to 258 M&A deals in Q1 2023.
The Reuters sources said the Hamilton talks are preliminary and a transaction may not materialise, with one source suggesting that a deal is more likely after the hurricane season ends in November given the company's underwriting exposure.
The news agency agrees that investors have been keen on the sector, citing Bermudian-based Everest Re’s raising of about $1.5 billion of capital to fund growth last month and Fidelis Insurance’s announced plan to seek an IPO in the United States.
RenaissanceRe agreed last month to buy Validus Re from American International Group in a deal of nearly $3 billion.
Hamilton is led by chief executive Pina Albo. A spokeswoman for the company said it had no comment on the report.