NSM Insurance Group, a global specialty insurance provider, has agreed to sell its U.S. commercial insurance division to New Mountain Capital, an investment firm managing over $55 bn in assets.
The transaction includes 15 niche insurance programs across property and casualty, accident and health, and reinsurance, as well as the retail agency NSM Insurance Brokers.
These programs will form a new independent entity, initially operating under the NSM name until a new brand is established.
Aaron Miller, currently NSM’s Chief Commercial Lines Officer, will become the CEO of the new entity. Miller has over 20 years of experience in the property and casualty commercial lines industry and has been instrumental in driving growth and transformation since joining NSM in 2021 (see US Insurance Rates Trends: P&C Insurance).
The deal is expected to close within 45 days, pending regulatory approvals and customary closing conditions. Upon completion, NSM’s CEO, Geof McKernan, and President, Bill McKernan, will join the board of directors to ensure a smooth transition.
Houlihan Lokey served as the exclusive financial advisor to Carlyle and NSM, with Wachtell, Lipton, Rosen & Katz providing legal counsel. Polsinelli also acted as legal counsel to NSM.
Ardea Partners served as the exclusive financial advisor to New Mountain Capital, with Simpson Thacher & Bartlett LLP providing legal counsel.
This strategic move allows NSM to focus on its remaining direct-to-consumer insurance brands and pursue future acquisitions, while New Mountain Capital aims to accelerate growth through focused investment in the new entity’s business, team, and technology.
