Reuters reported:
Private equity firm Carlyle Group Inc told Reuters on Monday it has agreed to acquire U.S. specialty insurance provider NSM Insurance Group from White Mountains Insurance Group Ltd for $1.78 billion in cash. Carlyle said the deal is expected to close in the second half of this year.
NSM packages and sells insurance products to businesses and directly to consumers. Their website shows pet insurance and coverage for nonprofits on their menu.
Carlyle makes money multiple ways via deal fees, management fees, special dividends and flipping affiliates. Owning insurance companies adds one more way as Carlyle can take ample affiliate cash and put it in Carlyle's private equity and other offerings. No conflict of interest here.
It's been decades since I visited Bermuda. I ran over most of the island but I don't recall anything that qualified as mountains. Carlyle's known for moving elected officials, some with mountain sized egos.
Should I need specialty insurance products I will review this list and be sure to buy from another insurance provider.
