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Hellman & Friedman to acquire Universal Underwriters for $1.1bn Hellman & Friedman to acquire Universal Underwriters for $1.1bn

05 Apr 2005. Source: AltAssets.
An investor group led by San Francisco-based private equity firm Hellman & Friedman has signed a stock purchase agreement to acquire Universal Underwriters Group from Zurich Financial Services Group in a transaction valued at approximately $1.1bn. Farallon Capital Management, GIC Special Investments Pte and Universal Underwriters' management will invest alongside Hellmann & Friedman. Following the transaction the investor group will own 100 per cent of Universal Underwriters.

Universal Underwriters is a provider of property and casualty insurance to US franchised automotive dealerships. The company offers specialised insurance and financial services to franchised auto, truck, equipment and motorcycle dealers, and the automotive aftermarket industry.

David R Tunnell, managing director of Hellman & Friedman, said 'We believe this group has a unique franchise within the world of insurance by virtue of being a market leading direct writer that employs its own proprietary sales force to serve a specialty customer niche.'

Brian M Powers, chief executive officer of Hellman & Friedman, added, 'Universal Underwriters is an ideal fit with Hellman & Friedman's investment philosophy and continued focus of investing in companies with strong management teams and defensible and enduring business franchises.'

Hellman & Friedman has already made other investments in the insurance sector, including Arch Capital Group Limited, MidOcean and Vertafore.

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