Cathay Financial Holding Co has announced that the Board of Directors of its subsidiary, Cathay Life Insurance Co, Ltd. has approved the acquisition of Conning Holdings Corp. and all of its subsidiaries. Conning is a premier global investment manager focused on the insurance industry with capabilities in risk and capital management and insurance research. Under the terms of the agreement, Cathay Life will purchase Conning for up to $240m from funds managed by Aquiline Capital Partners(a New York–based private equity firm investing in financial services) and other shareholders.
The transaction provides complete continuity for Conning and its clients. Following the closing, Conning will operate as an independent company within the Cathay group and be governed by its own Board of Directors. Conning will be led by its current president and CEO, Woody Bradford, and the existing global management team. Conning’s teams across asset management, risk and capital management and insurance research will remain in place, serving clients from Hartford, New York, Cologne and London. In Asia Pacific, Cathay Conning Asset Management (a joint venture between Conning and Cathay) will remain a core part of Conning’s strategy, providing global investment and advisory solutions from its offices in Hong Kong.
“This transaction is good for Conning’s clients and employees, as well as the long-term strategy of our company,” said Bradford. “Cathay supports the continuation of our firm’s client-focused culture and service model and will provide additional resources to accelerate our business plans and further enhance the value proposition for our clients.”
The acquisition is a significant step towards Cathay’s goal to build a complete financial services platform with expertise in asset management, banking and insurance. This transaction will allow both Conning and Cathay to broaden the capabilities available to their clients, support their growth in the third-party asset management market, and benefit from the resources and expertise of each organisation. Cathay has also expanded its investment management agreement with Conning to include additional asset commitments and growth capital.
“Cathay has been a client, shareholder and strategic partner of Conning since 2011,” said Hong-tu Tsai, chairman of Cathay. “We are excited to broaden our relationship with Conning and support the leadership team as they continue to build the business, both organically and through acquisitions, across markets in Asia, Europe and North America.”
“We have enjoyed partnering with Conning over the last five years, are very pleased with this transaction, and look forward to continuing to work with both Cathay and Conning,” said Jeff Greenberg, CEO of Aquiline. “We have great respect for the Cathay organisation and believe that they are an ideal owner for Conning.”
The transaction is subject to customary regulatory approvals and is expected to close in the second half of 2015.
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