NSM Insurance Group and New Mountain Capital Forge a Significant Partnership through Acquisition

NSM Insurance Group, a prominent provider of specialty insurance solutions, has officially confirmed its plans to divest its U.S. commercial insurance division. This strategic move involves entering into a binding agreement with New Mountain Capital, a leading investment firm renowned for its emphasis on building and growing businesses. With assets exceeding $55 billion, New Mountain is poised to enhance NSM's offerings and propel its growth trajectory in the specialty insurance market.

This significant transaction is projected to finalize within 45 days, pending regulatory approvals and customary closing conditions. Geof McKernan, CEO of NSM Insurance Group, expressed enthusiasm regarding this deal, emphasizing New Mountain's potential for guiding NSM's next growth phase. "We are excited for this milestone and for New Mountain’s expertise, integrity, and commitment to drive NSM forward,” McKernan stated.

NSM boasts a diverse portfolio consisting of 15 leading niche insurance programs, catering to areas such as Property Casualty, Accident Health, and Reinsurance, along with its retail arm, NSM Insurance Brokers. Following the acquisition, these programs will transition into an independent entity, retaining the NSM branding temporarily until a new brand identity is developed.

Robert Mulcare, Managing Director at New Mountain Capital, praised NSM’s remarkable performance over its 35-year history, noting the company's impressive and diverse specialty insurance distribution platform. He expressed confidence in turning NSM into a standout independent commercial insurance Managing General Agent (MGA) in the United States. Sean Donovan, also from New Mountain, shared his excitement about the opportunity to focus investments on the business, which aligns with their strategy of long-term success.

Since its inception in 1990, NSM has evolved into a significant player in the specialty insurance sector, garnering over $2 billion in premiums across more than 30 niche programs. A source of pride for the company is its continual ability to outperform competitors, positioning it uniquely in the current marketplace. More than 20,000 agents nationwide trust NSM's specialized offerings to satisfy diverse client needs.

Carlyle Group, which is currently NSM’s portfolio company, has played a instrumental role in supporting NSM's growth initiatives over the past three years. Jim Burr, Co-Head of Financial Services at Carlyle, highlighted their strategic focus on operational enhancements, mergers, and technological investments that have benefited NSM immensely. This sale represents a positive outcome for all stakeholders involved, paving the way for new growth avenues for NSM’s remaining direct-to-consumer brands.

As part of the transition, Geof McKernan and Bill McKernan are set to join the board of directors post-acquisition to ensure continuity. Aaron Miller, currently Chief Commercial Lines Officer at NSM, will step into the role of Chief Executive Officer for the new independent entity, bringing with him over two decades of relevant experience. Miller has been a vital contributor to NSM's transformative journey since he joined in 2021, focusing on enhancing product offerings and improving operational efficiencies.

"This is an exciting new chapter for all of us, our carrier partners, agents, and customers," Miller remarked. The collaboration with New Mountain aims to further cement NSM's status as a leading industry player and generate greater value for all key stakeholders.

In conclusion, the agreement between NSM Insurance Group and New Mountain Capital marks a pivotal shift in the specialty insurance landscape. With a shared vision for growth and a clear commitment to enhancing service offerings, both organizations are positioned to create a formidable partnership that could redefine excellence in the insurance sector.

For further details about NSM's innovative insurance programs, their website nsminc.com offers comprehensive insights.

About NSM Insurance Group

NSM Insurance Group is a renowned global specialty insurance provider committed to developing industry-specific insurance programs. With over three decades of experience, NSM has successfully created insurance products worth over $2 billion in premiums spanning various categories, including collector cars, student health, and commercial services.

About New Mountain Capital

New Mountain Capital, based in New York, focuses primarily on sustainable growth and business building, currently managing a vast portfolio across private equity, strategic equity, and credit, with around $55 billion in assets under management.

About Carlyle Group

Carlyle (NASDAQ: CG) is a prominent global investment firm, employing over 2,300 professionals and overseeing $441 billion in assets. Carlyle specializes across various areas, including private equity and investment solutions.