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Cinven and BCI to Acquire Compre

Cinven, an international private equity firm, and British Columbia Investment Management Corporation (“BCI”), one of Canada’s largest institutional investors, today announce that they have reached an agreement to acquire Compre, a specialist global consolidator of closed books of non-life insurance policies, from CBPE Capital LLP. Financial details of the transaction are not disclosed.

Compre is focused on the acquisition and management of discontinued (also known as ‘run-off’) non-life insurance portfolios and has operations in the UK, Bermuda, Finland, Germany, Malta and Switzerland. The global non-life insurance run-off market is growing steadily, driven by insurers’ increasing focus on balance sheet optimisation, capital efficiency and disposals of non-core business lines. Compre has a proven track record of acquiring portfolios from major institutions including Allianz, Generali, HSBC and Swiss Re. Founded in 1991, Compre employs c. 80 people at its offices in the UK, Continental Europe, and Bermuda.

Cinven and BCI believe that Compre is an attractive investment opportunity based on:

Compre’s high-quality, cash and capital-generative business model, that delivers highly predictable long-term profits, with significant downside protection;
Its strong and established market position in the European non-life insurance legacy market and, more recently, its growing market position in the US market through its Bermuda platform, with further ambitions to enter the Lloyd’s market going forward;
Its track record of acquiring and managing non-life legacy businesses over more than 30 years, comprising 11 company acquisitions and 39 portfolio transactions across various jurisdictions across Continental Europe, the UK and the US;
Its proven financial track record of steady and consistent growth in recent years, delivering robust performance through the COVID-19 pandemic and prior downturns;
The significant opportunity to capitalise on the increasing demand for legacy solutions and offer its products to a broader range of international clients; and
An exceptional management and leadership team, led by CEO, Will Bridger, with significant expertise across its specialist areas.

The Compre transaction represents the second investment from Cinven’s new financial services sector-focused strategy, which will be focused on similar long-term investment opportunities across Europe.

Cinven Funds’ previous investments in the European insurance sector include Guardian Financial Services in the UK; Eurovita in Italy; and Viridium in Germany. Cinven recently announced an agreement to acquire Miller, a specialist insurance broker. Other financial services investments by the Cinven Funds include Partnership Assurance, NewDay, Avolon and Premium Credit.

BCI has made a number of investments in financial services companies, including Hayfin Capital Management, Verifone, and BMS Group.

Luigi Sbrozzi, Partner of Cinven, commented:

“Cinven is delighted to be investing in Compre alongside BCI. Over the last 30 years Compre has built a proven platform in the highly specialised insurance and reinsurance run-off market, and a reputation amongst its clients for consistently creating and realising value. Compre is extremely well placed to access new growth markets, such as the US and Lloyd’s, and to broaden its client offering further. We look forward to working with Compre’s management team to deliver these growth opportunities, drawing on the deep expertise of the Cinven team in the insurance sector.”

Jim Pittman, Executive Vice President & Global Head, Private Equity, BCI, said:

“We are impressed by the quality of the platform built by Will Bridger and his team and are excited to partner alongside Cinven to support the continued growth of the business. BCI’s investment in Compre follows as a result of our proactive, sector focused origination strategy and relationship building efforts with the company. We look forward to supporting Compre in its development and in turn providing attractive and stable long-term risk-adjusted returns for our pension plan and insurance fund clients.”

Will Bridger, CEO, Compre, added:

“We are also delighted to be partnering with Cinven and BCI as we embark upon our next phase of growth. This has been a historic year for Compre. We completed our first US transaction, launched our Bermudian reinsurer and now, subject to regulatory approval, have new shareholders supporting further growth of the business. This was made possible through the commitment of everyone at Compre and our drive and determination for what we do. The legacy market is on an exciting trajectory and, together with our new shareholders, we will be best placed to deliver the ambitious plan we have for Compre.”

The transaction is expected to complete in Q2 2021 and is subject to regulatory approvals.

Cinven and BCI advisors included: Macquarie Capital (M&A); Allen & Overy and Latham & Watkins (Legal); PwC (Commercial, Financial, Actuarial, Operations, IT); FTI Consulting (Actuarial, Operations, IT, Communications); Deloitte (Tax, Structuring) and Marsh (Insurance).

Management advisers were Liberty Corporate Finance (Financial Advisor) and DLA Piper (Legal and Tax).

Media Contacts

Cinven

Vanessa Maydon Tel. +44 (0) 7802 961 902

Email. vanessa.maydon@cinven.com

Peter Folland Tel. +44 (0)787 099 2924

Email. peter.folland@cinven.com

FTI

Paul Harris Tel: 07971 098 045

Email: paul.harris@fticonsulting.com

BCI

Ben O’Hara-Byrne Tel: +1 778-410-7310

Email: communication@bci.ca

Compre

Richard Adams Tel: 07545926987

Email: richard.adams@haggie.co.uk

About Cinven

Cinven is a leading international private equity firm focused on building world-class global and European companies. Its funds invest in six key sectors: Business Services, Consumer, Financial Services, Healthcare, Industrials and Technology, Media and Telecommunications (TMT). Cinven has offices in London, New York, Frankfurt, Paris, Milan, Madrid, Guernsey, Luxembourg and Hong Kong.

Cinven takes a responsible approach towards its portfolio companies, their employees, suppliers, local communities, the environment and society.

Cinven Capital Management (V) General Partner Limited, Cinven Capital Management (VI) General Partner Limited, Cinven Capital Management (VII) General Partner Limited and Cinven Capital Management (SFF) General Partner Limited are each authorised and regulated by the Guernsey Financial Services Commission, and Cinven Partners LLP, the advisor to the Cinven Funds, is authorised and regulated by the Financial Conduct Authority.

In this press release ‘Cinven’ means, depending on the context, any of or collectively, Cinven Holdings Guernsey Limited, Cinven Partnership LLP, Cinven (LuxCo1) S.A., and their respective Associates (as defined in the Companies Act 2006) and/or funds managed or advised by any of the foregoing.

For additional information on Cinven please visit www.cinven.com and www.linkedin.com/company/cinven/

About BCI

With C$171.3 billion of assets under management as of March 31, 2020, British Columbia Investment Management Corporation (BCI) is one of Canada’s largest institutional investors. Based in Victoria, British Columbia, BCI is a long-term investor that invests across a range of asset classes: fixed income; public equities; private equity; infrastructure; renewable resources; real estate; and commercial mortgages. BCI’s clients include public sector pension plans, insurance, and special purpose funds.

BCI’s private equity program, with C$17.9 billion of assets under management, is a well-diversified portfolio comprised of direct and fund investments. The team brings industry expertise with more than 30 investment professionals investing across financial and business services, healthcare, industrials, consumer, and TMT sectors.

For more information about BCI, please visit www.bci.ca.

About Compre

Compre is a leading legacy specialist with over 30 years of experience in the acquisition and management of discontinued and legacy non-life insurance and reinsurance business. We have experience of acquiring most classes of direct and reinsurance business, including general liability, marine and motor liability, and US APH. Compre has operations in Finland, Germany, Malta, Switzerland, Bermuda and the UK.

Our track record includes the acquisition of companies in run-off, transfers of legacy business portfolios, the provision of reinsurance solutions and the subsequent management and closure of run-off liabilities. Solutions are tailored to meet the specific requirements of the vendor in relation to their legacy portfolios and cover economic, legal and administrative finality.

Compre is independent and privately owned. It is managed by its Executive Directors: Will Bridger, CEO; Mark Lawson, Group Actuarial Director; Dr Hubertus Labes, Managing Director – Germany and Austria; Simon Hawkins, COO, Eleni Iacovides, Chief Development Officer and Ian Patrick, Group CFO (subject to regulatory approval).

www.compre-group.com

CEOs of Canada’s Eight Pension Plan Investment Managers Urge Companies and Investors to Promote Sustainable and Inclusive Economic Growth

November 25, 2020 – Today, the CEOs of Canada’s eight leading pension plan investment managers, representing approximately $1.6 trillion in assets under management, are joining forces to help shape a future defined by more sustainable and inclusive economic growth.

For the first time, the CEOs of AIMCo, BCI, Caisse de dépôt et placement du Québec, CPP Investments, HOOPP, OMERS, Ontario Teachers’ Pension Plan, and PSP Investments have issued a joint statement. Together, they call on companies and investors to provide consistent and complete environmental, social, and governance (ESG) information to strengthen investment decision-making and better assess and manage their collective ESG risk exposures.

The signatories further commit to strengthening ESG disclosure within their own organizations and to allocate capital to investments best placed to deliver long-term sustainable value creation.

The joint statement declares, “How companies identify and address issues such as diversity & inclusion, human capital, and climate change can significantly contribute to value creation or erosion. Companies have an obligation to disclose their key business risks and opportunities to financial markets and should provide financially relevant, comparable and decision-useful information.”

The signatories recognize that while companies face a myriad of disclosure frameworks and requests, it is vital that they report relevant ESG data in a standardized way to provide clarity and improve data flow. They ask that companies measure and disclose their performance on material, industry-relevant ESG factors by adopting the Sustainability Accounting Standards Board (SASB) standards and the Task Force on Climate-related Financial Disclosures (TCFD) framework.

The statement recognizes the ongoing impact of the COVID-19 pandemic and recent events that have highlighted long-standing inequalities revealing business strengths and shortcomings concerning social inequity, including systemic racism, environmental threats, and board effectiveness. The signatories call on companies and investment partners to seize the tremendous opportunity available at this historic moment to actively take steps to drive lasting change.

“We are inspired by this opportunity to help confront the most urgent challenges facing our global community and create more inclusive economic growth. We encourage other parties committed to our vision to join us on this journey towards a more sustainable future for all,” the statement concludes.

MEDIA QUOTES:

“When you approach investing with a long-term view as we do, sound ESG practices are imperative to achieving strong, risk-adjusted returns. Seeking transparent and standardized disclosures is something we will continue to do, in the best interest of our clients and all Albertans.” – Kevin Uebelein, Chief Executive Officer, AIMCo

“BCI is committed to companies that create long-term value for our clients. Transparency is key, and we need comparable and consistent ESG disclosure to allow us to make informed investment decisions.” – Gordon J. Fyfe, Chief Executive Officer/Chief Investment Officer, BCI

“Increased transparency and standardized reporting on ESG matters will help investors better assess company risks and long-term performance and ultimately contribute to building a stronger and more sustainable economy for all. We are happy to see all major Canadian pension funds working together in pushing this important initiative forward.” – Charles Emond, President and Chief Executive Officer, Caisse de dépôt et placement du Québec

“CPP Investments is a strong supporter of both the Sustainability Accounting Standards Board (SASB) and the Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD). By aligning their reporting with these standards, companies can help global investors like CPP Investments to better understand, evaluate and assess potential risk and opportunities related to environmental, social and governance (ESG) factors.” – Mark Machin, President and Chief Executive Officer, Canada Pension Plan Investment Board

“As a global investor and the pension provider for Ontario’s healthcare workers, HOOPP is committed to sustainable investing. We are proud to be joining other major Canadian pensions in pushing for enhanced and standardized reporting of environmental, social and governance (ESG) information. This pledge is a call to action for both investors and businesses to work together for a better future.” – Jeff Wendling, President and Chief Executive Officer/Chief Investment Officer, HOOPP

“Capital allocation plays a critical role in the transition to a lower-carbon economy. At OMERS, we actively assess risks and opportunities through an ESG filter to identify investments that will generate long-term, stable returns in the context of this transition. Greater transparency and comparability of relevant data is essential to making informed allocation decisions.” – Blake Hutcheson, President and Chief Executive Officer, OMERS

“Our objective is to invest in companies that build a better future for their employees and communities while at the same time provide the appropriate risk-adjusted returns to help us meet our promise to our members. Providing clear guidance to companies on the sustainability frameworks that we support will help unlock the consistent and comparable information we need to make prudent investment decisions.” – Jo Taylor, President and Chief Executive Officer, Ontario Teachers’ Pension Plan

“Our investment approach is anchored in our commitment to act in the best interests of our contributors and beneficiaries. We believe a concerted ESG approach on standardized disclosures will give the industry new insight to inform risk models and investment decisions. At PSP Investments, we are proud to join this initiative.” – Neil Cunningham, President and Chief Executive Officer, PSP Investments

“A strong commitment to environmental sustainability, diversity and inclusion and good governance principles will not only make our economy and financial system more resilient, it’s also the right thing to do. Leadership from Canada’s financial sector is essential as we focus on building an enduring and more equal economic recovery from the pandemic. I applaud the commitment expressed today by Canada’s leading pension plan investment managers.” – Tiff Macklem, Governor, Bank of Canada

“SASB welcomes the leadership of Canada’s eight largest pension plan investment managers in advancing investor-focused sustainability disclosure. By asking companies to use SASB Standards, along with the TCFD recommendations, this group is helping improve the availability and comparability of sustainability information and contributing to more resilient markets.” – Janine Guillot, Chief Executive Officer, Sustainability Accounting Standards Board

“We applaud these Canadian pension funds for their efforts in contributing to a more resilient global economy. By asking companies to disclose in line with the TCFD and SASB frameworks, they are paving the way for convergence around a common set of disclosure principles and furthering Canada’s leadership in this area.” – Mary Schapiro, Head of the Task Force on Climate-related Financial Disclosures Secretariat and Vice Chair for Global Public Policy at Bloomberg LP

ABOUT:

AIMCo

AUM $118.8 billion (as at December 31, 2019)

Media: Dénes Németh, Tel: +1 780 932 4013, Email: denes.nemeth@aimco.ca

BCI

AUM $171.3 billion (as at March 31, 2020)

Media: Ben O’Hara-Byrne, Tel: +1 778 410 7310 Email: communication@bci.ca

CDPQ

AUM $333.0 billion (as at June 30, 2020)

Media: Serge Vallières, Tel: +1 514 847 5493, Email: medias@cdpq.com

CPP Investments

AUM $456.7 billion (as at September 30, 2020)