Cincinnati Financial Corporation’s $137 Million Acquisition of MSP Underwriting Limited


Sidley is guiding publicly traded Cincinnati Financial Corporation (NASDAQ: CINF) in its acquisition of London-based global specialty underwriter MSP Underwriting Limited from Munich Re for GBP 102 million (US$135 million) in cash.

The deal will provide Cincinnati Financial entry into the Lloyd’s market (through Lloyd’s Syndicate 318) including numerous international licenses, allowing pursuit of new geographies and lines of business. The acquisition will also allow Cincinnati Financial to expand into its first non-U.S. market in the company’s nearly 70-year history.

The deal received widespread press coverage, and exemplifies the recent pattern of cross-border Lloyd’s M&A activity, a trend in which Sidley has had significant involvement. According to Insurance Journal, the deal “comes a few months after another U.S. insurer, The Hanover Insurance Group, cashed in on a similar venture abroad” in the sale of its London-based Chaucer Lloyd’s platform to China Re for US$865 million. Sidley also advised on that transaction, representing China Re in the three-continent deal, which involved team members from Sidley’s Hong Kong, Beijing, London and U.S. offices.

The Sidley deal team advising Cincinnati Financial is led by Martin Membery (Picture) (insurance, London) and Jon Freedman (insurance, New York), and includes Christopher Allen, Dan Stafford, Peter Mabe (all M&A, London), James Phythian-Adams, Adriana Cotter, Samantha Walker (all insurance, London), Megan Arrogante (insurance, New York), Tom Kim (securities enforcement and regulatory, Washington, D.C.), Marc Raven (antitrust/competition, Chicago), Rosanna Connolly (antitrust/competition, London), Will Smith, Oliver Rosshandler (both tax, London) and Peter McCorkell (employee benefits, London).

Involved fees earner: Martin Membery – Sidley Austin LLP; Jonathan Freedman – Sidley Austin LLP; Christopher Allen – Sidley Austin LLP; Dan Stafford – Sidley Austin LLP; Peter Mabe – Sidley Austin LLP; James Phythian-Adams – Sidley Austin LLP; Adriana Cotter – Sidley Austin LLP; Samantha Walker – Sidley Austin LLP; Megan Arrogante – Sidley Austin LLP; Thomas Kim – Sidley Austin LLP; Marc Raven – Sidley Austin LLP; Rosanna Connolly – Sidley Austin LLP; Will Smith – Sidley Austin LLP; Oliver Rosshandler – Sidley Austin LLP; Peter McCorkell – Sidley Austin LLP;

Law Firms: Sidley Austin LLP;

Clients: Cincinnati Financial Corporation;