Slide Insurance mulls IPO; Aspen weighs reverse merger with SiriusPoint

S&P Global Market Intelligence presents In Play Today, a summary of potential deal activity in the global insurance sector. This report is based on publicly available information published from Jan. 1 to Jan. 31 and may not be inclusive of all potential deal activity.

US and Canada

– Slide Insurance Holdings Inc. is considering an IPO in the first half of 2024, as well as a private capital raise in parallel to capitalize on the hard market cycle, Insurance Insider US reported, citing sources. The Florida-based insurtech company is finalizing the retention of investment banks to support its potential listing. Slide Insurance declined to comment on the matter.

– AssuredPartners Inc. is exploring strategic options after it failed to find a bidder with acceptable terms for acquiring the business, Insurance Insider US reported. An IPO is the most likely option for the insurance broker, but a public listing would likely not be feasible until at least 2025 due to the necessity of additional integration work and other listing preparations, according to unnamed sources.

– Sunstar Insurance Group LLC is preparing to launch a strategic process as it looks for a new private equity backer, Insurance Insider US reported. The Tennessee-based insurance agency tapped Piper Sandler to run the action. Sunstar Insurance will be marketed with between $40 million and $45 million of EBITDA, representing a potential enterprise value of $650 million to $750 million based on current market multiples.

– Aspen Insurance Holdings Ltd. is in preliminary talks regarding a reverse merger with SiriusPoint Ltd., Insurance Insider US reported. Sources suggest there is a low likelihood that the deal would be consummated and Aspen Insurance is reportedly also exploring a potential cash takeout deal with a different counterparty, among other strategic options. The reverse merger would serve as a more expedited alternative to a traditional public listing for Aspen Insurance, according to a report from The Insurer.

Europe, Middle East and Africa

– Insurance House PSC received a letter of intent regarding a potential transaction with an undisclosed United Arab Emirates-based company. The transaction could involve the acquisition of a strategic stake in Insurance House, according to a company filing.

– Cinven Ltd. tapped Goldman Sachs to explore a potential sale of its Germany-based Viridium Group GmbH & Co. KG unit, Milano Finanza reported. Hannover Re and Assicurazioni Generali SpA hold minority stakes in Viridium Group. The decision comes amid a delay in obtaining approval from Germany's BaFin for Cinven's acquisition of a 21 billion portfolio from Zurich Insurance Group AG, which was reportedly due to Cinven's refusal to recapitalize troubled Italian insurer Eurovita.

– UniCredit SpA is considering acquiring the remaining stakes it does not already own in its life insurance joint ventures with CNP Assurances SA and Allianz SE, Milano Finanza reported. UniCredit is in talks with CNP Assurances for their CNP UniCredit Vita SpA joint venture, which will expire at the end of 2024. The lender could also begin discussions with Allianz in the coming months for their joint venture, which is set to expire in 2027.

– The Phoenix Holdings Ltd. is in "very advanced" discussions with two foreign investors to sell a 25% stake in Phoenix Insurance Agencies, Globes reported, citing a source close to the matter. The transaction would value Phoenix Insurance Agencies at between $900 million and $1 billion. Phoenix Holdings owns an 80% stake in Phoenix Insurance Agencies.

– The board of Saga PLC is exploring opportunities for its cruise business and concluded that a partnership arrangement for Ocean Cruise would be in line with its strategy to move to a capital-light business model, reduce debt and enhance long-term returns for shareholders. Saga said it has not made a decision yet regarding the matter, and there is no certainty that any partnership agreement will occur.

– PJSC Gazprom's board discussed a plan to divest its stake in Gazprom Insurance on Jan. 29, Vedomosti reported. Gazprom is most likely aiming to protect its insurance subsidiary from the risk of sanctions, according to the newspaper.

– Viridium Group will no longer complete its planned acquisition of Zurich Life Legacy. Zurich Insurance Group AG said it remains committed to finding a solution for the German life back book portfolio and will explore options in due course. In a separate statement, Viridium Group said the transaction will not proceed due to considerations related to its current ownership structure.

Asia-Pacific

– Nanshan Life Insurance Co. Ltd. is looking to launch an IPO to replenish capital, Chairman Yin Chung-yao said during an interview with Bloomberg TV. The Taiwan-based company does not have a timetable yet for a public listing.

– Niva Bupa Health Insurance Co. Ltd. intends to raise 30 billion rupees through an IPO, The Economic Times reported, citing sources. The India-based health insurer tapped Kotak Mahindra, ICIC Securities and Morgan Stanley to manage the public issue. Niva Bupa Health is a joint venture between The British United Provident Association Ltd. and True North, which currently hold a 63% stake and 28% stake, respectively.

– Bharti Group is in advanced talks regarding a potential sale of its Bharti AXA Life Insurance Co. Ltd. unit as it looks to exit the insurance business and focus on telecommunications, The Economic Times reported. SBI Life Insurance Co. Ltd. is among other insurers that are in negotiations with Bharti Group for the life insurance business, according to people with knowledge of the matter.

Beata Fojcik and Yael Schrage contributed to this report.