Middle market private equity firm Madison Dearborn Partners LLC announced on Monday an agreement alongside Canadian insurance broker Navacord Corp. to take a stake in insurance broker Insurance Office of America.
The minority stake will strengthen Navacord’s insurance brokerage presence in the U.S., according to a statement from the companies. The deal’s terms were not disclosed.
IOA will retain its independence and senior management, and the transaction will allow IOA to pursue M&A opportunities within the U.S. insurance brokerage industry.
The investments come at a time when private equity firms are increasingly looking to partner with insurers. MDP and Navacord have partnered since 2018, with an additional investment from the PE firm in 2023.
“Together with the IOA management team, its employee shareholders, and Navacord, we are confident we will be able to support IOA’s growth and continue delivering excellent outcomes for their diverse and growing client base,” said Matt Raino, partner in and co-head of financial service at MDP, in a statement.
MDP has raised $36 billion in capital and has completed more than 160 investments across industries. IOA is a provider of property and causality, employee benefits, and personal life insurance. Navacord, with $5 billion in premiums, provides commercial and personal insurance, travel and specialty, group benefits and financial planning.
Related Stories:
Insurers Further Embrace Private Assets, Especially Private Credit
Janus Henderson Subsidiary to Sell Stake to Annuity, Life Insurance Firm
Apollo-, Athene-Backed Athora to Acquire PRT Provider Pension Insurance Corp.
Tags: insurance, Private Equity