Market Information
NZX Limited
Level 2, NZX Centre
11 Cable Street
Wellington
New Zealand
Company Announcements Office
Australian Securities Exchange Limited
Exchange Centre
Level 6, 20 Bridge Street
Sydney NSW 2000
Australia
6 January 2017
CBL CORPORATION CLOSES NZ$150M STRATEGIC ACQUISITION
International credit and financial risk insurer, CBL Corporation Limited
(CBL), announced today that it has successfully closed its EUR94.5m
acquisition of 71% of Securities and Financial Solutions Europe SA (SFS),
France''s largest specialist producer of construction-sector insurance and
CBL''s largest single client, and IMS Expert Europe SA (IMS), SFS'' claims
management operation. The closing took place in Luxembourg on 5th January
2017, following receipt of approval from the Commissariat aux Assurances in
October 2016.
CBL Managing Director Mr Peter Harris said "I am pleased to welcome SFS and
IMS into the CBL Group and I am excited about the possibilities for the
future. The acquisition of SFS is expected to provide important strategic
benefits for CBL including the removal of distribution concentration risk
that SFS represented being CBL''s largest client, the ability to further
vertically integrate the Group and to consolidate CBL''s market position in
Europe, particularly in France, currently our largest European market."
CBL began a working relationship with SFS in 2005 following establishment of
the business in 2002 by entrepreneur and principal owner Mr Patrice Gilles.
A strong relationship was built over the following 11 years resulting in SFS
becoming the largest building risk insurance specialist in France and writing
the largest proportion of CBL''s French construction-sector insurance
products, mainly Dommages Ouvrage (project-specific workmanship) and
Decennial Liability.
Mr Gilles said "CBL has been an important partner to SFS over the years and
together we have developed a strong market position. That is why I see CBL
as the natural party to further develop opportunities and grow the business
alongside SFS CEO Mr Antoine Guiguet and IMS CEO Gerard Marichy. My future
role as an Ambassador of SFS will allow me to continue my support for the
business in a non-Executive capacity. I am delighted we have now consummated
the SFS and CBL partnership today."
Mr Guiguet, who along with Mr Marichy will maintain a 29% shareholding in SFS
and IMS, with CBL holding the balance has expressed his excitement about the
prospects for the future now that SFS and IMS will be part of the larger CBL
Group. "We have worked closely with CBL for many years and the opportunity
to build an even closer relationship opens up many exciting prospects to
continue our growth under CBL ownership" said Mr Guiguet. "The recent
upgrade in CBL Insurance Limited''s AM Best rating to A- (Excellent) in
particular presents opportunities to make SFS and CBL into even more
significant players in the French construction insurance market. We look
forward to working with CBL and helping them achieve their long term goals
for CBL and SFS."
SFS is a leading MGA, writing specialist construction-sector insurance
products on behalf of insurers in France and has recently opened branches in
Belgium and Luxembourg. As a Managing General Agent (MGA), SFS does not bear
any insurance risk and earns revenue from brokerage and fees. In addition to
CBL, SFS has large limit capacity binders with other European insurers
including Zurich, Alpha, Mitsui Sumitomo, Elite, and HDI Gerling. IMS is a
claims management business that manages the claims for SFS and other third
party clients.
Mr Harris said he is looking forward to working with Mr Guiguet and Mr
Marichy in their executive roles and with Mr Gilles in his non-Executive
role. "The acquisition of SFS is complementary to our existing UK-based MGA
European Insurance Services Limited, which also distributes
construction-sector insurance products in France. SFS and IMS add
significant specialist skills and resources that are expected to enable CBL
to grow both businesses. There are no redundancies contemplated" said Mr
Harris. CBL has worked with Mr Guiguet and Mr Marichy for some years now and
they are both on top of their game in their French market.
The acquisition was funded by a combination of cash, bank and vendor funding.
ENDS
CBL Corporation Limited (CBL) (NZX: CBL; ASX: CBL) is a specialist insurer
and reinsurer group focused on credit and financial risk. CBL has eight
offices spread across 25 countries and over 180 employees. The acquisition of
SFS and IMS will add, approximately, a further 360 employees to the CBL
Group. CBL is a public company with its shares listed on ASX and NZX. CBL''s
main operating subsidiary is CBL Insurance Limited, which is a New Zealand
licenced non-life insurer and re-insurer, supervised and regulated by the
Reserve Bank of New Zealand and has been operating for over 43 years. CBL
also has a number of wholly owned subsidiary insurance companies including
CBL Insurance Europe Limited, which is a regulated insurer in Ireland, and
Assetinsure Pty Ltd a regulated Surety & Bonding insurer in Australia, and
owns a 35% investment in Afianzadora Fiducia, S.A. de C.V Fiducia, a
regulated Surety and Bonding Insurer in Mexico.
CBL also has Managing General Agents (MGA''s), the largest being European
Insurance Services (EISL 100% owned) and Professional Fee Protection (PFP
which is 92% owned by the Group).
CBL specialises in writing property liability and construction related credit
and financial surety insurance, bonding and reinsurance. CBL Insurance
Limited has a Financial Strength Rating of A- (Excellent) and an issuer
rating of a-, with both outlooks ''Stable'', from A.M. Best Ratings Agency.
Visit http://cblcorporation.co.nz/ for further information
SFS was established in 2002 and is a leading MGA writing specialist
construction-sector insurance products on behalf of insurers. SFS has 48
wholly-owned branches, 313 employees, and has a presence in 13 markets
including France, Luxembourg, Belgium, Italy and French Overseas Departments
and Territories. The company is domiciled in Luxembourg.
Visit www.sfs-groupe.com for further information
IMS was established in 2010 to undertake claims management on behalf of SFS
and third party clients. IMS is also headquartered in Luxembourg and has
offices in Paris, Montauban, Toulouse, and Reunion Island, with a total of 81
employees.
Visit www.ims-expert.com for further information
For investor queries please contact:
Carden Mulholland
Chief Financial Officer
CBL Corporation Limited
Phone +64 9 303 4770
ARBN 604 999 466 Incorporated in New Zealand
For media queries, please contact:
Geoff Senescall
Senescall Akers Ltd
+64 21 581 23
senescall@senescallakers.co.nz
End CA:00295252 For:CBL Type:ASSET Time:2017-01-06 10:16:31