First round bids submitted for CFC Underwriting

Last week saw the submittal of the first round of bids for CFC Underwriting with those involved believed to be all private equity houses. It has been reported that the company could go for 12x forward Ebitda of £15mn ($18.7mn), equating to more than £180mn. Warburg Pincus, Lightyear Capital and Aquiline are understood to have been involved in the first stage. The MGA is keen to retain its independent status which is why the process is closed to strategic bidders. 50% of the business is believed to be available for purchase and could end up being a slight majority or minority depending on where the deal closes.