SFS is France’s largest specialist producer of insurance for the construction sector and CBL’s largest single client.
The acquisition also included IMS Expert Europe SA, SFS’ claims management operation.
CBL is a specialist insurer and reinsurer group focused on credit and financial risk.
The acquisition of SFS is expected to provide important strategic benefits for CBL, including the removal of distribution concentration risk that SFS represented being CBL’s largest client.
Moreover, the deal is expected to further vertically integrate CBL and consolidate its market position in Europe, particularly in France, currently CBL’s largest European market.
As a managing general agent (MGA), SFS does not bear any insurance risk and earns revenue from brokerage and fees.
The acquisition of SFS is complementary to CBL’s existing UK-based MGA European Insurance Services Limited, which also distributes construction sector insurance products in France.
The closing of the acquisition took place in Luxembourg on 5 January 2017, following receipt of approval from the Commissariat aux Assurances of Luxembourg in October 2016.
The acquisition was funded by a combination of cash, bank and vendor funding.
CBL’s share price has increased by more than 36% during the past six months, last trading at $3.55.