NSM to sell commercial division to New Mountain

NSM Insurance Group, a specialty managing general agent, said Monday it has agreed to sell its U.S. commercial insurance division to New Mountain Capital, a New York-based private equity firm.

Terms of the transaction were not disclosed. The deal is expected to close in 45 days, subject to regulatory approval.

The deal includes NSM’s portfolio of 15 niche insurance programs across property and casualty, accident and health and reinsurance, in addition to its retail agency, NSM Insurance Brokers.

The programs will form a new independent business entity, which will continue to be marketed as NSM until the new brand is established, Conshohocken, Pennsylvania-based NSM said in a statement.

Aaron Miller, chief commercial lines officer at NSM, will become CEO of the new entity. Geof McKernan, previously CEO, and Bill McKernan, previously president, will join the board of directors once the deal closes.

Founded in 1990, NSM is a global specialty managing general agent with more than $2 billion in premium across more than 30 niche insurance programs.

NSM was sold by White Mountains Insurance Group Ltd. to Carlyle Group Inc. in 2022.

Carlyle will continue to work with NSM to grow its remaining direct-to-consumer insurance businesses and pursue future strategic acquisitions, Jim Burr, co-head of financial services at Carlyle, said in the statement.