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

Main Deliverables

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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