Some partnership news from Pantheon Underwriting;
Pantheon Underwriters GmbH, a specialist in insurance for M&A transactions, has gained German Underwriting (GU) as a shareholder. GU manages the MGA-activities of MRH Trowe, thereby gaining strong access to medium-sized companies and new sales channels outside Pantheon‘s previous market for transaction insurance.
“Since our foundation in 2022, we have grown strongly and are now one of the leading providers of transaction insurances in Germany, Austria and Switzerland”, says Pantheon founder and managing director Michael Gaul. “MRH Trowe is a group with strong roots in the SME sector and also offers a wide range of services at the interface with financing solutions. We complement each other perfectly in this area.”
M&A transaction insurance is currently taken out primarily for larger company acquisitions involving private equity investors. Gaul estimates the proportion of insured transactions involving private equity at around 40 per cent. However, acquisitions of medium-sized companies, especially in the context of corporate succession, are rarely insured. The proportion of insured transactions in this target segment is significantly below 10 per cent. “Together with our new strategic partner, we want to further expand the distribution of transaction insurance outside the current market and offer new innovative insurance solutions for small-cap transactions”, says Gaul.
“Small and medium-sized enterprises are largely unaware of the options available for mitigating such risks. There is a huge need for advice in this area,” adds Xianbei Li, also a founder and managing director of Pantheon. “However, risk assessment in this segment does not have to be nearly as complex as it is for large transactions. That’s why we are perfectly positioned with our closing processes designed for efficiency and rapid implementation. Access to the expertise and technology of our new partner will enable us to further expand this efficiency and quality.”
“This cooperation closes an existing gap in the area of financial services,” says Ralph Rockel, CEO of MRH Trowe. “Incidents during M&A transactions can have existential consequences for small and medium-sized enterprises. This is given far too little attention, or the possible solutions are not known. That is why we need to address this issue and supplement our range of services relating to our customers’ financing needs. Through our cooperation with many credit institutions, we are able to reach the SME segment very well.”
Pantheon Underwriters GmbH acts as an underwriting agent and develops tailor-made insurance concepts for corporate and real estate transactions.
German Underwriting GmbH, through which MRH Trowe manages its insurance activities, is acquiring a majority stake in Pantheon Underwriters GmbH. The founders and managing directors will continue to manage the business going forward. The parties involved have agreed not to disclose details of the transaction.
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