Warburg Pincus invests undisclosed amounts in Canada’s SCM Insurance

Sun Capital Partners

A private equity firm, Warburg Pincus has invested undisclosed amounts in Canada’s SCM Insurance Services.

Warburg Pincus has given further information about the transaction details but the latest investment is yet another bet on Canada’s economy.

The private equity firm has invested in Canadian energy companies such as MainSail Energy, MEG Energy Corp and Osum Oil Sands Corp.

Along with our teams of experienced professionals, our market-leading technology, and our extensive data intelligence, this important investment from Warburg Pincus will help SCM implement the next phase of our successful growth strategy and allow us to serve our clients in even more ways and in more places,” said Bob Fitzgerald, CEO of SCM Insurance Services. “Warburg Pincus is not only the right partner at the right time for SCM, it is also the right fit culturally and strategically.”

“SCM has established itself as the leading provider of outsourced claims management and tech-enabled insurance services in Canada, and has positioned itself well for further expansion in the U.S.,” said Jeffrey Stein, Principal, Warburg Pincus. “Through its wide range of market-leading services, the Company has already become an attractive one-stop shop for the P&C industry and we see meaningful opportunity to continue investing in and expanding its service lines.”

Chandler Reedy, Managing Director, Warburg Pincus, added, “We look forward to partnering with Bob and his team and TorQuest to support SCM’s ongoing growth in Canada and further expansion in the U.S. market.”

“Under TorQuest’s ownership, in partnership with founder Larry Shumka and SCM’s management, the Company’s revenue has grown by three times through a commitment to market leadership and excellence in the Canadian insurance market,” said TorQuest Partner Alan Lever.

“We are excited about the future prospects for SCM as it moves to its next phase of growth in partnership with Warburg Pincus,” Eric Berke, Managing Partner at TorQuest, added. “SCM is another great example of TorQuest partnering with an exceptional founder and management team to support the growth of an industry-leading business.”

In May 2017, SCM made its initial entry into the United States by acquiring Nixon & Company, Inc., providing it with a platform from which to continue building out its service offerings both domestically and into the Lloyd’s of London marketplace. This U.S. expansion is consistent with SCM’s commitment to expand geographically in line with the needs of its clients who are seeking market-leading offerings in third-party administration and innovative adjusting solutions.

“We are also excited for the opportunities that this investment will bring for our staff across North America,” said Bob Fitzgerald. “It will allow us to continue to invest in the right technologies, training and development that makes SCM a great place to work and grow your career.”

SCM Insurance disclosed that Morgan Stanley & Co. LLC acted as financial advisor in the transaction.