Preservation Capital Partners announces investment in HBC
On July 29, 2022, Preservation Capital Partners signed a definitive agreement to become the institutional backer and majority owner in Hanseatic Broking Center GmbH (“HBC”), the innovative insurance specialist for corporate clients in Germany.
HBC is a manager-owner-led platform aiming to play a leading role in the rapidly changing German insurance sector. The goal is to build the highest quality, innovation-driven commercial lines broker and MGA. The Group aims to grow organically through strategic team hires, new product launches and cross sell initiatives, and inorganically, by partnering with and acquiring high quality businesses. The Group’s business culture and communication is focused on transparency, with the company’s customers at the core of everything they do.
The starting point of HBC includes several strategic transactions: Sieveking Gruppe, Hartmann, Schuler, Robert Schüler, and Barg & Büttner. By extension, the group also includes the MGAs Gaede & Glauerdt and Paul Sieveking & Carl Ewald. Currently, HBC manages over €200+ million gross written premiums, 200+ staff and 10+ offices throughout Germany, serving 10+ product lines.
Preservation Capital Partners, has relevant experience in the UK and European insurance sectors via its current investments in BMS (a global reinsurance and specialist broker) and Optio (a leading independent MGA in the UK and Lloyd’s of London). We back HBC’s existing management with our capital and expertise to build out one of the leading businesses in the German insurance sector.
Hauke Martinsen, Geschäftsführer at HBC, said: “We have grown a lot over the past few years, and seen the sector evolve rapidly. At HBC we aim to play a leading role in the innovation and consolidation that is unfolding. We expect to show strong growth organically, as we have broking and MGA expertise in our Group, and inorganically, through acquisitions and partnering with like-minded managers and entrepreneurs in the sector. While growing we will stay focused on protecting our distinctive HBC culture and our customers, who are at the core of everything we do. We believe Preservation Capital Partners is uniquely positioned to help us as true partner given their expertise in the sector.”
Jeroen Bischops, Partner at PCP, said: “The central principle of our investment approach is to back outstanding management teams, focus on high quality businesses, positioned in a sector that benefits from strong secular growth trends. HBC and its related businesses experience double-digit organic revenue growth, excellent business retention and a uniquely vertically integrated business model. We are delighted to support this talented management team and help them build one of the leading businesses in the insurance sector, while placing the corporate customer at the core of everything”.
Preservation Capital Partners is advised by Sidley Austin LLP, PwC and Herax Partners LLP.