PEAK6 Investments, today announced that it has acquired National Flood Services (NFS) from Aon plc (NYSE:AON), a leading global professional services firm providing a broad range of risk, retirement and health solutions.
NFS is the largest U.S. provider of technology-enabled risk & business process services in flood insurance. The company’s 550 colleagues support nearly 87,000 active flood agents, who manage approximately 1.8 million flood policies in force and $1.5 billion of National Flood Insurance Program premium annually.
“We see significant opportunity to leverage NFS’s deep expertise and long-standing client relationships to further strengthen its presence in the flood insurance market,” said George Ruhana, a partner at PEAK6 Investments. “We have an established track record of successfully leading transformations by using technology and look forward to driving enhanced growth at NFS.”
Louis Hobson, CEO of NFS, added, “NFS has a rich history – more than 30 years of experience – and we remain committed to reducing the devastating financial and emotional impact flooding has on our communities. I’m proud to partner with PEAK6 and excited to work together to take the business to the next level as we leverage PEAK6’s deep expertise in supporting technology-enabled businesses.”
As part of the agreement, Aon is retaining the private flood insurance business, currently known as NFS Edge, a Managing General Agent (MGA) and the provider of EZ Flood. NFS Edge aligns with Aon’s focus on classic insurance product development as well as sales and marketing through MGAs and will continue to have a strong contractual relationship with National Flood Services.
“As we considered the next phase of the journey for both Aon and NFS, we sought to identify a new owner for NFS who would bring significant operational capabilities, IT innovation, and capital to drive growth for the business and its clients,” said Liam Caffrey, CEO of Affinity for Aon. “PEAK6’s investment will strengthen NFS’ position as the leader in the flood insurance market and enhance the value it delivers on behalf of clients and policyholders.”
Waller Helms Advisors, LLC acted as financial advisor and Latham & Watkins acted as legal counsel to PEAK6.