Strategic & Commercial Due Diligence | Brick Project

Client Needs & Objectives

Our client, a French mid-large cap private equity fund, wanted to assess a majority investment opportunity in an insurance brokerage structure developing both a wholesale broker activity on construction risk and a risk bearer activity thanks to an insurance captive

The objectives were as follows:

  • An analysis of the market and its drivers
  • A detailed analysis of recent and future growth in wholesale activity (product, prices, distribution)
  • An analysis of the quality of the “brokerage” client book and relations with risk carriers
  • Development of an opinion on the credibility of the BP

Our approach

  • Market dynamics: review of the construction market and construction insurance in France and Europe
  • Regulatory environment : Detailed explanation of the regulatory context and its impacts
  • Operations & process assessment :  Review of company processes (notably management and IT) with identification of progress actions
  • Development strategy by becoming their own risk carrier: customer portfolio analysis, feasibility and rationale of the development strategy
  • Business plan review & challenge: hypothesis-driven approach based on market assessment and expert interviews

Client Benefits & Main Results

  • Clear understanding of the value chain and ongoing regulatory changes and their impacts

  • Identification of internal risk areas (human, operational and commercial)

  • Identification of risks related to the relationships between the wholesale broker and its insurers and reinsurers

  • Understanding of the assumptions of the Business Plan and its credibility

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