Hi Friends!
We had a week off from conferences in between Insurtech NY and Origami Elevate next week in Phoenix. The world keeps turning as we enter quarter 2 and spring is blooming albeit with a little cold here in the Midwest. Looking forward to being in the warm Phoenix sunshine for a big chunk of next week.
This week, we’re tracking several key investment moves. Lincoln Financial and Bain Capital, along with BroadStreet’s new investment from Ethos, continue to show how insurers and private equity remain deeply focused on insurance distribution.
At the same time, MS&AD and Swiss Re’s iptiQ brand are exiting Australia- a signal that bigger strategic shifts and new product launches may be coming, especially those aimed at addressing emerging gaps in property and risk coverage.
Let’s explore the three things we learned this week.
Lincoln Financial and BroadStreet Make Bold Capital Moves
The insurance sector continues to be of interest to private equity and capital movement. We see bold investment plays that signal a shift toward long-term positioning and recalibrated growth ambitions with parties on both sides taking advantage of this opportunity.
Lincoln has secured an $825 million investment from Bain Capital. But this isn’t just about capital infusion—Bain is also taking a 9.9% equity stake and stepping in as a strategic investment manager across Lincoln’s general account and retirement platforms. The play here is clear: access to private markets and alternative assets, bolstered by Bain’s institutional capabilities. For Lincoln, this means expanding beyond traditional fixed-income instruments and leaning into private credit, real estate, and infrastructure—asset classes increasingly favored by insurers hunting for yield in a compressed spread environment.
Meanwhile, BroadStreet Partners is entering a new chapter of growth, backed by an evolved investor lineup that includes Ethos Capital, BCI, and White Mountains. Ontario Teachers’ Pension Plan, which has been a key stakeholder, will retain a meaningful position in the company. The deal reinforces BroadStreet’s status as a high-performing brokerage platform while opening the door to deeper capital resources and a broader strategic horizon. This reshuffling isn’t just a financial transaction—it reflects a deliberate approach to scaling operations, expanding distribution capabilities, and driving consolidation in the brokerage market.
MS&AD and Swiss Re Exit Australia: A Strategic Shift Towards Growth Markets
In a notable realignment of global insurance strategies, both Swiss Re and MS&AD Insurance Group have recently divested their Australian interests, signaling a concerted focus on more dynamic markets, particularly the United States.
MS&AD has sold its entire 15.1% stake in Australian financial services firm Challenger Ltd. to TAL, a subsidiary of Dai-ichi Life Holdings, for approximately $550 million. This decision aligns with MS&AD’s strategy to improve capital efficiency and focus on international life insurance businesses expected to benefit from market growth. An AM Best report released this week highlights that, facing a mature domestic market with limited growth potential, Japanese insurers are strategically diversifying their revenue streams to maintain long-term growth, particularly in the U.S. and other developed economies .
Similarly, Swiss Re has agreed to transfer its Australian direct life insurance portfolio, managed under the iptiQ brand, to Hannover Life Re of Australasia. This move is part of Swiss Re’s broader decision to withdraw from its B2B2C business segment, aiming to concentrate on core reinsurance operations and optimize its business portfolio.Even Ambac’s $420 million sale of its legacy financial guaranty subsidiaries to Oaktree Capital adds to the theme. It’s another example of firms exiting non-core assets to redirect focus toward differentiated growth strategies. This week they provided an update that they have met all the conditions of pre-closing but remain under regulatory review.
Marsh, Resilience, and Bamboo Expand Coverage in Cyber and Property Markets
As the insurance industry navigates evolving risks and market challenges, leading firms are introducing innovative products and forming strategic partnerships to meet emerging demands.
Marsh has launched two significant cyber insurance facilities to address the growing need for comprehensive cyber risk coverage. The Cyber ECHO facility offers up to $125 million in excess cyber insurance capacity, providing businesses with robust protection against significant cyber and technology risk exposures. Notably, it includes a unique feature of round-the-clock reinstatement, allowing for continuous support in the event of multiple losses within a policy year.
Complementing this, Marsh introduced CyberShore Bermuda, an exclusive excess cyber insurance facility providing up to $30 million in follow-form excess Bermuda coverage. This facility features a first-of-its-kind claims enhancement, enabling the lead insurer to manage claims handling, thereby reducing negotiation time and ensuring a swift response.
Resilience, a cyber risk solutions firm, has expanded its capacity to serve large enterprise accounts with revenues exceeding $10 billion. Through a partnership with Accredited Insurance, backed by a panel of global cyber reinsurers, Resilience aims to address clients’ complex cyber risks. This expansion allows broker partners to offer Resilience as an option for large accounts, enhancing their ability to serve clients’ most intricate cyber risk needs.
In the property insurance sector, Bamboo Insurance, a California-based provider specializing in homeowners coverage, has partnered with Incline P&C Group, an insurance program carrier, to expand insurance capacity in California. This collaboration combines Bamboo’s underwriting platform with Incline’s financial resources, aiming to provide affordable insurance coverage for hundreds of thousands of Californians. By utilizing technology and data, Bamboo seeks to offer transparent and reliable property insurance solutions to California residents.