Selecting the right partner

Challenge: The winds of change were blowing through the insurance industry. Banks and large financial services companies were expanding into the insurance players’ territory while domestic and international competitors were turning on the pressure. Insurance companies were consolidating and the landscape was transforming rapidly. It was time for this traditional insurance company to review its future direction, whose stock price had been underperforming for a long time.

Methodology: Arkwright was engaged with the objective to find a new long term solution that would not only involve a review of alternative avenues, but take the client into the future. Additionally, the client needed to enhance competitiveness and increase their market value. After a thorough situation analysis, Arkwright determined the client company suffered from a value realization gap – harboring a cache of untapped market value. Needed was a well-structured partnership that would secure a long-term market position and parlay the company’s true value into its stock price.

Working with the client and a global investment bank, Arkwright structured and implemented a five-step partner process and assisted with the negotiations. “Selecting the right partner and then structuring the agreement to the advantage of both parties was an involved process. But the client’s commitment and our methodical approach clearly paid off,” explains Arkwright project lead. 

Result: The largest in-market bank acquired the insurance company and this new partnership increased its market access and distribution power.  Additionally, the share price increased by 80 percent. “The finalization of the partnership agreement had an immediate impact on the client’s market value and we were able to quickly see the results we wanted. Most importantly, we secured our client’s competitive position in the insurances industry with a solid long-term strategy.”  “I have worked with many major international consulting firms (…) My experience with Arkwright is that they deliver the same quality as other strategy firms, but in addition, you get the answer quicker, and the specifics of their recommendations are easier to understand and act upon. Their style is also humbler”, says the former chairman of the insurance company.