NSM Insurance Group Sells U.S. Commercial Division to New Mountain Capital

NSM Insurance Group has recently announced a significant transition in their business endeavors by completing the sale of their U.S. commercial insurance division to the investment firm New Mountain Capital. This acquisition encompasses 15 diverse insurance programs that span accident and health, property and casualty, as well as reinsurance sectors, along with the retail segment represented by NSM Insurance Brokers. This major development was revealed in an official company statement detailing this strategic transaction.

This transaction involves dividing NSM's operations into two new entities, each of which will debut new brand identities. The timeline for this rebranding has yet to be announced, indicating a thoughtful and strategic approach to the transition. Notably, the founder and current president of NSM, Geof McKernan and Bill McKernan respectively, have joined the board of the newly established organization, demonstrating continuity in leadership. In addition, Aaron Miller, formerly NSM’s chief commercial lines officer, is set to take the helm as the chief executive officer of the new entity under New Mountain Capital's management.

The partnership first came into the public eye when NSM initially disclosed the agreement with New Mountain Capital in February. This sale signifies a pivotal change in NSM's business model, enabling the company to hone its focus on other specialized insurance lines while New Mountain assumes control of the commercial portfolio. Despite the impending transition, NSM has been actively engaging in mergers and acquisitions, demonstrating its resilience and strategic vision. In mid-2024, NSM fortified its portfolio by acquiring ISO Student Health Insurance, which specializes in coverage for international students in the United States. Earlier, in October 2023, Envisage International, a provider specializing in health and travel insurance for international students and cultural exchanges, became a part of NSM's growing enterprise.

Further expansion was witnessed in May 2024 when NSM acquired AllClear Travel Insurance and InsureandGo, both UK-based companies, enhancing NSM’s travel insurance specialization. In addition to these strategic acquisitions, August 2024 saw the inclusion of GIG Insurance Group and Gifford Wells Insurance, expanding NSM's reach in the professional liability insurance market. Earlier in June 2024, Strategic Underwriters International, a managing general agent with a specialization in facultative reinsurance, was added to NSM's portfolio. Not forgetting July 2023, when NSM enhanced its property solutions with the acquisition of Shield Commercial Insurance Services, aimed at offering tailored insurance for contractors. NSM orchestrates over $1.8 billion in premiums spread across more than 25 specialty programs including niches like collector vehicles, health and travel for students, social services, behavioral health, addiction treatment, and coastal condominium insurance. On the other side of the transaction, New Mountain Capital, headquartered in New York, administers around $55 billion in assets, corroborating its solid standing in the private equity domain and its preparedness to steward this newly acquired commercial insurance venture.