PE Firm Reduces P&C Insurance Premiums by 79%
A private equity (PE) group acquired several catering companies. Unfortunately, it encountered unwelcome surprises during the insurance renewals for those acquisitions.Hylant helped this client prepare for the next renewal, dramatically reducing its insurance program costs and simplifying administration.
Challenge
Before making acquisitions, the PE firm hired a broker to perform pre-transaction due diligence. It consisted of confirming that the target companies were insured. Unfortunately, the broker’s service didn’t include an analysis of prior insurance claims and their likely impact on future premium costs for the new owners. One of the target companies had a very poor and expensive loss history, which resulted in a costly renewal for the new parent company.
Solution
Hylant evaluated each portfolio company’s insurance program to prepare for the next renewal. The acquired companies’ property and casualty programs were then consolidated onto one insurance platform.
Through skilled negotiation, Hylant was able to place the combined insurance program at a substantially lower cost for the new parent company.
Not all due diligence is created equal. When buying companies, it pays to work with an experienced broker who expertly views your transaction through a risk-focused lens. Working with the right team pays dividends.
Results for the Client
$267,066 Saved
P&C insurance costs have been reduced by 79% for the acquired companies.
50% Reduction
The wind/hail deductibles have been significantly reduced for the acquired companies.
Time Saved
With a single combined insurance program, administration has been greatly simplified.
Trusted Advisors
Hylant team members are ready to advise you and help you confidently address your organization's needs.
Kip Irle
Global M&A | Transaction Solutions Leader
Chicago
Casey Johnson
Managing Director - Transactional Risk
Grand Rapids
Warren Philipp Jr.
Managing Director - Transactional Risk
Columbus
Michelle Molnar
Managing Director - Due Diligence
Toledo
Rachel Dobbs
Client Executive
Orlando
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