US private equity major Warburg Pincus and Singapore state investor Temasek Holdings Pte have agreed to acquire London-based independent insurance intermediary Specialist Risk Group (SRG).

SRG did not disclose the financial details of the acquisition. A Bloomberg report, however, said the transaction values the insurance intermediary at more than $1.27 billion, including debt.

In a statement, SRG said its management team will invest alongside Warburg Pincus and Temasek and will continue to hold a significant stake in the business.

The deal is subject to customary closing conditions, including regulatory approvals.

Warburg Pincus and Temasek Holdings will acquire SRG from American middle-market private equity firm HGGC. The PE firm bought Miles Smith parent SRG in December 2020 from Pollen Street Capital.

SRG currently employs over 600 people and places premiums of more than £1 billion. The firm said the new investors will support the continued realisation of its growth ambitions and strategy.

Warburg Pincus managing director James O’Gara said they have been following SRG’s progression over the past few years with keen interest and are delighted to partner with the business.

“We believe SRG has all the right ingredients – talent, capabilities, and culture – to build on its position as a true standout amongst European and international intermediaries,” said O’Gara.

SRG was formed by merging specialist insurance brokers Miles Smith Insurance Solutions, Square Mile Broking, The Underwriting Exchange Special Risks Division, and David Codling and Associates.

Then, in December 2020, HGGC, acquired a majority stake in the firm, SRG said on its website.