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Compre The European Finality Experts
Compre
The European Finality Experts
Compre The European Finality Experts
Introduction
We are experts in
delivering finality through
a variety of structures –
including interim
reinsurance, portfolio
and company acquisitions,
mergers and demergers
Key benefits of finality
include capital release,
cost reduction, reduced
volatility and less
management distraction
Solvency II demands a
greater need to proactively
manage non-life legacy
liabilities
Legacy is now being used
as a tool for proactive
balance sheet management
Compre has an extensive
track record and strong
reputation for providing
legacy business finality
solutions. Maintaining
the vendor’s reputation
is paramount
We have detailed
knowledge and practical
experience of the different
regulatory and legislative
regimes in multiple
jurisdictions
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Compre The European Finality Experts
What is Compre?
A leading European legacy specialist with over 30 years of experience in the acquisition
and management of (re)insurance companies and portfolios in run-off. Compre has
operations in Finland, Germany, Malta, Switzerland and the UK
Privately owned with shareholders actively involved in management of the business
Significant experience in multiple classes of direct and reinsurance business, including
property, liability, marine and motor
Strong balance sheet and access to varied forms of acquisition capital to suit different
transactions
Compre has acquired from major financial institutions including: Allianz, Axa, Generali,
Gjensidige, HSBC, QBE and Swiss Re. Many of these counterparties have sought finality
with Compre on more than one occasion
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Compre The European Finality Experts
Compre History
2015Increased growth capital
from CBPE Capital to support management
investment and replace Milestone funding; cease
provision of 3rd party services
2004Joint venture with
Cargill; focus changed to acquisition of legacy business; continue to provide third party
services
2008Joint venture with
Cargill ceases; Compre acquires
100% of Joint Venture Vehicle
19941st run-off company
acquisition
1991Compre formed
2011Growth Capital from
Milestone Capital Partners to support
management investment
2016Compre forms
first legacy focused SE in the UK and redomiciles SE to
Malta
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20178 transactions signed with a
number of counterparties
2018First Italian
International Business Transfer completed, as well
as two other business transfers
Compre The European Finality Experts
Executive Management
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Will Bridger
CEO
Former Partner heading EY’s
Transaction Advisory practice for the
Insurance Sector. Corporate financier by
background and training over the past
20 years. Responsible for the strategic
development of the business and
driving the growth agenda. Specific
oversight responsibility for business
generation, market engagement and
relationships, and corporate
development.
Simon Hawkins
Group CFO
Simon joined Compre in July 2018 as
COO and was appointed Group CFO in
January 2019. Prior to this, Simon spent
7 years at QBE Insurance, where he was
responsible for the management and
strategic disposal of over $2bn of legacy
reserves. He originally qualified as an
accountant at PwC, where he spent 13
years in the Insurance Restructuring
team.
Compre The European Finality Experts
Executive Management
Rhydian Williams
Managing Director –
Operations
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Hubertus Labes
Managing Director –
Germany/Austria
Previously Head of the Pools,
Security and Insolvency
Department at Equitas/ Resolute.
Almost 30 years experience
in the Lloyd’s and Run-off
sectors. Responsible for driving
operational efficiencies and value
from the insurance liabilities.
Hubertus is also CEO of HIR
which was acquired by Compre
in 2014. Previously Executive
Director of Chiltington. Hubertus
has over 20 years of experience in
insurance and reinsurance legacy
business. Hubertus is a lawyer by
profession and is responsible for
leading Compre’s activities
in Germany and Austria.
Mark Lawson
Group Actuarial Director
Mark is a qualified actuary with
nearly 20 years’ experience in the
(re)insurance legacy sector.
Responsible for driving all
actuarial activities relating to
claims reserves, capital
management, M&A assessment,
commutations and asset strategy.
Mark joined Compre in 2016 after
having spent 16 years at PwC.
Compre The European Finality Experts
Group Structure
Aurora Versicherungs AG (Switzerland)
Service Operations
Finland, Germany, Malta, Switzerland, UK
Malta Holding Companies (2)
UK Holding Companies (3)
Insurance & Reinsurance Companies
Hamburger Internationale
Rückversicherung AG (Germany)
Bothnia International Insurance Company
Ltd (Finland)
London & Leith Insurance PCC SE
(Malta)
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Compre The European Finality Experts
Acquisitions Track Record
Company Acquisition
FIGRE (UK)
Patria Re (Finland)
ST International (Finland)
Bothnia (Finland)
Moorgate (UK)
WI Insurance (Wasa) (Sweden)
Stockholm Re (Sweden)
London & Leith (UK)
AURORA (Switzerland)
Hamburger Internationale Rückversicherung AG (Germany)
DubliMont DAC(Ireland)
If P&C (Finland)
Tryg Vesta (Denmark)
LF (8 portfolios) (Sweden)
Sparebank 1 (2 portfolios) (Norway)
Unison (3 portfolios) (Norway)
Gjensidige (2 portfolios) (Norway)
Wüstenrot & Württembergische RFP (Germany)
Swiss Re International SE Gibbon (Luxembourg)
Atlantic Mutual (2 portfolios) (UK)
LVM (Germany)
QBE RFP (UK)
Allianz IARD RFP (France)
AG Insurance UK Branch (Belgium )
Axa Insurance Gibbon (Switzerland)
Allianz Versicherungs(Germany)
Generali (2 portfolios) (Italy)
Hannover Re / E+S Re (2 Portfolios)(Germany)
Portfolio Acquisition
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Compre The European Finality Experts
Reasons to Exit your Legacy Business
Release of capital to support core
and/or new business opportunities
Remove the drag caused by non-core
legacy business
Remove volatility risk and
achieve finality
Shareholder scrutiny of long tail
claims which can be difficult to
predict, understand and manage
Solvency II has highlighted the capital
tied up by legacy business, generating
little return
Operational changes such as IT
developments or loss of
experience/knowledge/people
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Compre The European Finality Experts
Routes to Exit Legacy Business
Portfolio Acquisition
• Offers full legal and
economic finality of all
insurance liabilities
• Local jurisdiction
determines mechanism
of transfer
• Operational finality
achieved once transfer
complete
• Dependant upon
jurisdiction, the legal
transfer can sometimes
take several months and
is often preceded with a
Reinsurance Solution
Reinsurance SolutionCompany Acquisition
• The sale of 100% of the
shares in the company
in run-off
• Structured as a Share
Purchase Agreement
• Non-insurance due
diligence required
• Requires the approval
of local regulators
• Legal, economic and
operational finality on
completion of deal in
typically 6 months
• Also known as a Loss
Portfolio Transfer (LPT)
• Provides economic and
operational finality for
the seller but no legal
transfer of insurance or
reinsurance policies
• Typically achieved by
agreeing the terms of a
100% Net Quota Share
reinsurance agreement
• Can be effective
immediately
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Compre The European Finality Experts
Experience of Legal Transfers
Compre has a strong track record of executing Insurance Business Transfers in many
jurisdictions across Europe, such as the UK, Germany, Belgium and France. We completed
the first international Italian business transfer in under 12 months in 2018.
Providing counterparties with operational finality is also key to ensuring we deliver a
total solution. Our business integration team exists to ensure we assume the transition of
claims, customer management and data reporting quickly and efficiently.
We have strong relationships with local regulators, which is crucial to ensuring a smooth
transfer process.
Our dedicated business transfer team has significant experience of multi-jurisdiction
transfers and works closely with our counterparties to guide them through the process.
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Compre The European Finality Experts
Reputation
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Compre has been
consistently trusted by
major financial institutions
for over 30 years to deliver
complex finality solutions
and manage their future
claims
Compre continually aims
to protect and enhance the
reputation of the vendor.
This is key to every
solution we provide which
will always ensure
proactive claims
management and the
timely payment of all
valid claims
We have open and
positive relationships
with regulators in
multiple jurisdictions
Compre has completed
transactions in European
countries involving 12
different regulators.
Compre The European Finality Experts
Compre’s Vision for the Future
Vision
• Market leading
European P&C legacy
insurance business
consolidator
• The mid-market P&C
legacy provider of
choice in the US/ North
American market
• At the forefront of legal
finality developments
in the market
Growth StrategyAim
• To grow the insurance
capital of the business
to over US$ 500m
• To access flexible capital
while keeping core
platform capital optimal
• To generate long term
stable returns on core
capital at a premium
to our WACC
• To have strong
management and
employee ownership
and shareholder
alignment
• Consolidate and
strengthen Europe
• Motor liability
consolidation vehicle –
centre of excellence
• Lloyd’s
• US/ Bermuda
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Compre The European Finality Experts
Appendices
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Compre The European Finality Experts
Case Study - Generali’s first legacy deal
• Driven by Generali’s strategy to optimise
its capital allocation and increase
operational efficiency as well as to dispose
of non-core operations
• Compre provided finality to Generali for
their UK and US Branches in December
2017
• Direct and reinsurance business written
between 1960s and 2000s, including US
APH and non-APH, UK Employers’
Liability and Motor liabilities
• Both branches were given economic
finality via LPTs provided by Bothnia.
The UK branch will achieve legal finality
via a legal transfer
– UK Branch: Italian business transfer
from Generali (Italy) to Bothnia
(Finland) was successfully approved in
December 2018
– US Branch: Long term collateralised
reinsurance
– Potential future legal transfer subject to
legislation developments such as Reg
68 in Rhode Island
– Both branches achieved immediate
operational finality via a Run off
management agreement
– Significant capital release achieved for
Generali
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Compre The European Finality Experts
Compre’s Investors - CBPE
About CBPE Capital
• 35 year history
• 9 funds raised
• Over €1bn AuM
• Financial services focus
Capital commitment to support Compre
growth
• Ambition for Compre to acquire
minimum gross reserves of €250m and
grow net assets to > €150m
CBPE has a wide variety of institutional
investors
• Pension funds
• Government bodies
• Insurance companies
• Universities
BNPPrivate Equity
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Compre The European Finality Experts
Contact Details
For further details about Compre please visit our website:
www.compre-group.com
Will Bridger CEO
Direct Dial +44 20 3551 6550
Mobile +44 7764 988 953
Simon Hawkins Group CFO
Direct Dial +44 20 3551 6535
Mobile +44 7764 235 370
Dr. Hubertus Labes Managing Director – Germany
Direct Dial +49 40 593 556210
Mobile +49 171 608 4235
Philipp Kleyser Head of Business Origination
Managing Director – Germany and Austria
Direct Dial +49 40 593 556217
Mobile +49 171 608 4231
Joseph Pallaro Managing Director – Switzerland
Mobile +41 79 106 75 76
Rob Margetts Head of M&A
Direct Dial +44 20 3551 6554
Mobile +44 7774 093 054
