UK MGA CFC Underwriting Receives Major Investment From 2 Private Equity Firms

October 21, 2021

CFC Underwriting, the London-based specialist managing general agent, announced a major investment jointly led by EQT and Vitruvian Partners, two of Europe’s leading private equity firms.

The size of the investment was not disclosed.

Founded in 1999, CFC was one of the pioneers in the cyber insurance market. “Today, it is a technology-driven business that has established itself as a global leader in cyber and provider of cover for a diverse range of emerging risks that sit at the intersection of technology and business,” said CFC in a statement.

CFC writes 50 products across 20 different classes of specialist insurance focused primarily on SME businesses. Earlier in the year CFC also launched its own Lloyd’s syndicate.

Serving more than 100,000 businesses in over 90 countries, CFC employs more than 500 people in the UK, U.S., Europe and Australia, with offices in London, New York, Austin, Brussels and Brisbane.

It has an annual premium run rate in excess of £750 million ($1 billion) and delivered an organic EBITDA CAGR of 35% over the last five years.

Upon completion of the investment, following regulatory approval, CFC will nearly double its employee shareholders from 175 to over 300. Employees will remain the largest shareholding block in CFC.

“We’re delighted to welcome EQT as an investor alongside Vitruvian [which already was an investor]. Both EQT and Vitruvian’s focus on high-growth technology companies and commitment to creating a positive impact through their portfolios is a natural fit with CFC and our ethos as an independent, employee-owned business,” commented Dave Walsh, CFC founder and group CEO.

“EQT’s investment and Vitruvian’s reinvestment is testament to CFC’s track record of delivering strong, profitable growth underpinned by the expertise of our people and our history of market-leading technology innovation,” he added.

“CFC is a truly innovative insurance business with technology at its core and a track record of growth and profitability which surpasses even the most mature fintech businesses we’ve seen. The accelerating pace of investment in its core platform aligns perfectly with EQT’s approach of future-proofing companies,” said Robert Maclean, partner at Stockholm-headquartered EQT.

Joe O’ Mara, partner at London-based Vitruvian, said: “As longstanding partners and investors in CFC, we couldn’t be more enthusiastic about the road ahead. We’ve witnessed first-hand what a remarkable business CFC is – a tribute to the leadership team, the culture they’ve created and the commitment to excellence and innovation that has kept CFC at the forefront of the insurance market.”

“CFC’s unrivalled reputation in cyber insurance and focus on emerging risk areas ensures that it is well-placed to capture the significant growth expected in the classes it writes,” said Sofia Ahuja, managing director at EQT.

Source: CFC

Topics Underwriting Insurance Wholesale

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