Insurer launches private equity practice

by Paul Lucas03 Feb 2016
One of the largest insurers in both Canada and the USA has announced that it will create its own private equity practice.

Chubb will offer the practice to both private equity firms and their portfolio companies in an effort to bring a wider array of underwriting expertise to a host of new companies. There will be a large suite of products on offer including: primary, foreign and excess casualty; middle market packages; environmental; property and specialty; professional and management liability; surety; transactional risk; political risk; and loss portfolio transfers.

Chubb has a 48branch network across the USA and Canada and Sean Gillston, the company’s Executive Vice President, is hopeful that it can offer firms deep industry knowledge.

“Private equity firms and their advisors are involved in deals in multiple industries and geographies,” Mr. Gillston commented. “These deals present new challenges and require companies to rebalance their priorities, which often add layers of risk. Chubb’s underwriting approach leverages broader relationships with private equity firms and their portfolio companies to respond as timely as possible.”

The practice will work alongside the Chubb Major Accounts division, which was recently established, as well as the commercial insurance division. It is hoped that solutions such as loss portfolio transfers and transactional risk products will help provide more protection against the liabilities associated with acquisitions and mergers.

“More and more of our current and prospective clients attract private equity investments," said Chris Maleno, Division President, Chubb Major Accounts.

“We are responding by coordinating our resources and assembling a dedicated team of underwriters who possess experience within this space. Following the recent blending of two legacy insurance organizations with strengths in both the middle market and large account segments, we now are able to leverage our complementary lines of business and commitment to servicing our clients’ specialized needs. This expanded industry practice is a tangible expression of our intention to bring more robust insurance solutions to the marketplace.”