Davies Group to acquire Canada’s SCM Insurance to form $4.3bn company

UK-based security institution Davies Group has agreed to get SCM Insurance Services, a Canadian institution specialising successful claims processing and hazard absorption solutions.

The combined worth of the businesses pursuing the transaction volition beryllium £3.25bn ($4.3bn), inclusive of debt, reported Bloomberg, citing unnamed sources.

The acquisition volition spot SCM’s 3 main divisions – ClaimsPro, IPG and Pario – joining Davies’ planetary operations.

ClaimsPro operates arsenic a claims adjusting provider, IPG is simply a third-party administrator, and Pario focuses connected forensic engineering, consultancy, and post-loss appraisal services.

Once the woody is finalised, Davies, which is controlled by BC Partners, volition person yearly revenues of astir C$1.4bn ($1bn) and a workforce of 9,500 crossed 22 countries successful Europe, North America, South America, Asia and Australasia.

The woody is expected to grow Davies’ work scope crossed Canada portion besides adding SCM’s US operations to Davies’ existing beingness successful the US.

More than 1,500 unit from SCM successful Canada and the US are acceptable to articulation Davies nether the agreement.

With the summation of ClaimsPro, IPG and Pario, Davies aims to fortify its hazard absorption and claims services successful North America.

The work scope volition screen brokers, captive insurers, corporations, insurers, Lloyd’s syndicates, managing wide agents and nationalist assemblage bodies.

The transaction volition besides spot SCM’s existent organization shareholders – Warburg Pincus and TorQuest Partners – reinvest portion of their proceeds and support number ownership stakes successful Davies, alongside BC Partners, AIMCo and HGGC.

Davies Group CEO Dan Saulter said: “We are thrilled to person gotten this woody signed, bringing the SCM squad into Davies. The concern is precise highly regarded successful Canada, and arsenic marketplace leader, this puts america successful the #1 spot successful this increasing and vibrant market.

“The woody volition let america to unlock important maturation opportunities, connected some sides of the ledger; with SCM clients benefitting from our planetary scope and wider work offering; and with Davies clients being capable to entree the champion claims and hazard solutions teams successful Canada.”

SCM Insurance CEO Bob Fitzgerald commented: “This is simply a fantastic accidental for each the SCM Insurance Services brands. Our clients volition present person entree to Davies’ planetary solutions, instantly elevating our technology, AI and level offering. I americium precise overmuch looking guardant to moving with Dan astatine this breathtaking time.”

"Davies Group to get Canada’s SCM Insurance to signifier $4.3bn company" was primitively created and published by Life Insurance International, a GlobalData owned brand.