Investment firm Spencer Capital Holdings is acquiring independent captive insurance manager USA Risk Group. The transaction, the financial details of which were not disclosed, is subject to customary closing requirements and regulatory approval, and is expected to close during the first quarter of this year.
Spencer Capital said that the acquisition of USA Risk is immediately accretive to it and that the new subsidiary is complementary to its existing portfolio of companies. "The financial and operational support of Spencer Capital will provide USA Risk with the opportunity to grow and expand its client capabilities while maintaining its longstanding autonomy," Spencer Capital said in a statement on the purchase. "Spencer Re, a reinsurance subsidiary of Spencer Capital Holdings, and USA Risk are expected to be mutual beneficiaries from cross-selling opportunities."
USA Risk currently serves over 300 clients, holding $9bn assets under management. Founded in 1981 it has since established member companies in a number of locations, including the USA, Barbados, Bermuda, Malta, the Cayman Islands and the British Virgin Islands. It services 20 captive domiciles, inside and outside the US market and currently has 70 employees on and offshore.
Spencer Capital said that after the transaction closes, USA Risk will keep its name and continue to operate as it has effectively done for over 30 years.
Channels:SAA/ALM
