Holland Re, previously a part of the Dutch reinsurance group NRG, was sold to its management in June 1994 with support from Cinven’s investors. The business provided reinsurance, mostly in the Netherlands, to life insurance companies and pension funds as well as mortgage-related direct insurance. The business was sold to preserve its own good performance and market-standing, against a background of poor performance and eventual winding down of its former parent.
The strategy of the business was to increase penetration into its core Dutch market and develop its syndicate-based European business. Projections for the business showed good growth in gross premium income and increasing profits as claims from writing disability business were projected to fall.
This investment remained part of Cinven’s portfolio for a short period. After one year the business was sold to Swiss Re, which wanted to grow its share of the Dutch market.
Multiple returned on investment: 4.7x