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Cunningham Lindsey is up for sale


April 2, 2012   by Canadian Underwriter


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Insurance claims management company Cunningham Lindsey is up for sale at an estimated price tag of about $1 billion, according to reports from various media sources.

Both Thomson Reuters business news agency and digital news service Post Online.co.uk cited sources saying that Stone Point Capital LLC, a buyout firm with a majority stake in Cunningham Lindsey, has authorized the sale. Bank of America Merrill Lynch is involved in organizing the auction, according to sources, who added that the company is expected to draw interest from private equity firms.

Rob Seal, president and CEO of Cunningham Lindsey–Canada, confirmed that the group operation is for sale.

“In the new world of private equity a sale is inevitable; it really just comes down to timing,” Seal says. “Clearly, the market conditions and our great group results lead to an opportunistic time for our present shareholders to sell. We see this a good opportunity for all the operating companies as new capital can also lead to new opportunities throughout those divisions.”

The Canadian operations will continue with “business as usual,” Seal adds. “We are excited to be going through this and will not be distracted from our business with this process.”

Canadian-based property and casualty insurer and reinsurer Fairfax Financial Holdings Ltd owns a large minority stake in Cunningham Lindsey.

Representatives of Stone Point Capital and Fairfax Financial did not respond to a request for comment at press time.


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