Houlihan Lokey Advises NSM Insurance Group

Houlihan Lokey is pleased to announce that NSM Insurance Group (NSM), a global specialty insurance provider and a portfolio company of global investment firm Carlyle, has reached an agreement to sell its U.S. commercial insurance division to New Mountain Capital (New Mountain). The transaction is expected to close in the next 45 days, subject to regulatory approvals and other customary closing conditions.

The agreement encompasses NSM’s diverse portfolio of 15 market-leading niche insurance programs across property and casualty, accident and health, and reinsurance—as well as its retail agency, NSM Insurance Brokers. These programs will form a new independent business entity, which will continue to be marketed as NSM until a new brand is established.

Since the company’s founding in 1990, NSM has grown and evolved into a global specialty insurance provider with more than $2 billion in premium across 30+ niche insurance programs. NSM has developed a winning formula for building the industry’s most successful and sustainable insurance brands, consistently outperforming competitors and driving industry-leading growth and profitability. More than 20,000 agents nationwide rely on NSM’s specialized insurance programs to meet the unique needs of their clients.

New Mountain is a leading growth-oriented investment firm with more than $55 billion in assets under management. Geof McKernan and Bill McKernan will join the board of directors upon the closing of the acquisition to ensure continuity and a smooth transition. Aaron Miller, Chief Commercial Lines Officer of NSM, will become the Chief Executive Officer of the new entity backed by New Mountain. Mr. Miller has more than 20 years of experience in the P&C commercial lines industry and has held various management and leadership roles throughout his career. Since joining NSM in 2021, he has been instrumental in driving the continued growth and transformation of the B2B programs by enhancing product offerings, improving operational efficiency, and strengthening carrier relationships.

Houlihan Lokey acted as the exclusive financial advisor to NSM and Carlyle.

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