Stone Point Capital Backs Cunningham Lindsey Privatization

November 1, 2007

The loss-adjusting firm Cunningham Lindsey Group (CLG) announced that it has “signed a definitive agreement regarding substantial investment from private equity firm Stone Point Capital,” which will culminate in its privatization. The exact amount was not given.

Stone Point Capital is a global private equity firm, formed in 1985. It has managed Marsh & McLennan’s Trident funds, with a collective worth of around $3 billion, since 2005. In October 2005 Stone Point entered into a deal with The Chubb Corporation to form a Bermuda-based reinsurer, Harbor Point Limited, which acquired the ongoing business of Chubb Re, Inc. (See IJ web site Oct. 26, 2005).

The private equity firm’s backing, along with CLG’s majority shareholder, Canada’s Fairfax Financial Holdings and CLG’s senior management, will now work out the details of turning CLG into a privately-owned organization.

“To bring in a new partner, with a proven track record of success in the financial services market, will help us to accelerate our strategy for growth,” explained CGL President and CEO Jan Christiansen.

Fairfax will also increases its investment in the company by approximately $20 million. The Toronto-based insurance group purchased CLG in 1986.

The bulletin also noted that the “involvement of the management teams in ownership is a sign of their confidence in Cunningham Lindsey, ensuring stability within the organization and continuity for its clients. Cunningham Lindsey will continue to function as five operating companies, with the current management teams and organizational structure remaining in place.”

A special meeting for shareholders of Cunningham Lindsey will be held in December 2007 to consider the transaction, which is also subject to regulatory approvals.

Source: CLG –

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