Home > News > Corporate Moves > KKR, USI Insurance Buy USI Shares From CDPQ
Corporate Moves

KKR, USI Insurance Buy USI Shares From CDPQ

KKR is increasing its equity in the insurance broker and consultant to continue driving long-term growth.
By Noah Zuss



USI Insurance Services LLC announced Monday that shareholder KKR & Co. will increase its equity investment to the insurance broker and consultant by more than $1 billion.

Per the terms of the agreement, KKR and USI will purchase more than half of the shares of USI held by Canadian pension fund Caisse de dépôt et placement du Québec, according to the press release.

KKR is making the additional investment in USI through its core investments strategy, and the transaction is expected to be completed by the end of 2023, the release added.

USI Insurance is co-owned by private equity firm KKR and institutional investor CDPQ, which has C$424 billion ($312.35 billion) in assets. CDPQ and KKR acquired USI in 2017 in partnership with USI’s management and employees, according to the press release.

Never miss a story — sign up for CIO newsletters to stay up-to-date on the latest institutional investment industry news.

“When we embarked on our journey with KKR and CDPQ, we shared a vision about the forces impacting our industry and a plan for USI to be a leading innovator in that transformation, combining world-class sponsorship and investment with our team of experts, differentiated solutions and technology,” Michael Sicard, chair and CEO of USI, stated in the release.

“Our dynamic partnership has unlocked multiple opportunities and USI is well positioned to capitalize on its strengths and to continue creating value for all stakeholders,” said Martin Longchamps, executive vice president and head of private equity at CDPQ, in the same statement.

USI offers insurance brokerage and consulting services in the U.S., providing property and casualty, employee benefits, personal risk, program and retirement solutions to clients. Headquartered in Valhalla, New York, USI has more than 10,000 employees in more than 200 offices.

A representative for USI Consulting Services did not return a request seeking further information on the transaction.

Tags: , , , , ,

Home > News > Market Moves > Will Apple’s Rotten Showing Continue? Watch the New iPhone Release
Market Moves

Will Apple’s Rotten Showing Continue? Watch the New iPhone Release

The company’s key product, the latest version of which will be unveiled Tuesday, has boosted the stock in the past.

By Larry Light

Apple Inc., the world’s largest company by stock value, enjoyed a great first half of the year—and then it dropped. Can the new edition of the iPhone, launching Tuesday, turn things around?

The company’s share performance is important because, as the leader of the Magnificent Seven tech titans, it has a major bearing on the entire market’s direction. As of Monday’s close, Apple was down 9.2% since its peak on July 31. By no coincidence, the S&P 500 topped out that day, too, and has lost 2.2% since.

As of Monday, both Apple and the index were ahead about 0.7%. Part of the Apple share rise appears to be related to the upcoming debut of the iPhone 15. A new iPhone release has prompted an increase in Apple stock every time since the first one arrived in 2007, averaging a 14% gain after six months, according to Barron’s.

“The iPhone 15 is set to bring design and feature updates, and we think that the design changes” will result in higher sales, wrote Amit Daryanani, a senior managing director at Evercore ISI, in a report.

Never miss a story — sign up for CIO newsletters to stay up-to-date on the latest institutional investment industry news.

Nonetheless, Apple has to overcome some headwinds. In its quarter ending July 1, overall sales fell 1.4%, and iPhone sales, which make up almost half of the total, slid 2.4%. In addition, the Chinese Communist Party announced last week that government employees could no longer use Apple phones (or those from any other non-China-based producer).

While analysts predicted the ban would have little impact, investors grew concerned that it was a prelude to a wider prohibition. China accounts for 18% of Apple’s revenue.

The iPhone downtick tracks weakness for smartphones overall: The product’s shipments globally dipped 6.8% in the quarter that ended June 30 from the same period one year earlier, marking the eighth straight quarter of year-over-year contraction, per International Data Corp. 

The IDC analysts cited “soft demand, inflation, macroeconomic uncertainties and excess inventory” for the general smartphone slump, although they added that the rate of decline seemed to be slowing.

Tags: , , , , , ,

«