Hedgehog Risk sells “substantial interest” to SIG Insurance Holdings

By Chris Munro

Jan 28 - (The Insurer) - Lloyd’s coverholder Hedgehog Risk has sold “a substantial interest” in its business to Susquehanna International Group affiliate SIG Insurance Holdings, LLC, Program Manager can reveal.

London-based sports and prize insurance specialist Hedgehog said the investment will be used in part to support its expansion in the UK and Europe, while the tie-up will also see the MGA support SIG Insurance’s efforts in the US.

In a statement, Hedgehog said its newly enlarged platform will allow it to develop a deeper and wider-ranging pricing capability across all sports disciplines.

The partnership will also increase Hedgehog’s capacity to cover larger and longer-term risks and provide it with the ability to structure new products with creative solutions.

“Our collaboration with SIG Insurance is a significant moment in our journey as it will help fuel growth across key markets and allow us to move into new lines of business in the sports and entertainment insurance sectors,” said Luke de Rougemont, Hedgehog managing director.

“We’re delighted to be working with the SIG Insurance team because ultimately it means we will be better able to meet the needs of our clients,” de Rougemont added.

The new investment comes 12 years after Hedgehog was first launched. The company has since evolved into a leading player in the niche contractual bonus and prize indemnity insurance markets.

It works with sponsors, teams and agencies to help structure and insure performance bonus incentives in player and/or team contracts, along with protecting performance-linked revenues.

Its clients include equipment manufacturers, national federations, retailers, fantasy sports operators, major leagues and athletics departments, among others.

Hedgehog also provides coverage for promotions linked to sporting events, as well as lottery and gaming risks.

According to its website, Hedgehog has to date provided more than £750mn ($932mn) in coverage to a wide range of clients based in more than 15 countries.

Hedgehog underwrites its business on capacity provided by what it describes as “global specialty (re)insurance markets and alternative capacity providers with robust balance sheets”.

Alongside its London operation, the Lloyd’s coverholder also has a US subsidiary, the New Jersey-based Hedgehog Insurance Agency.

Hedgehog’s new investor SIG Insurance is a member of privately held global trading and technology firm Susquehanna.

Formed in 1987, Susquehanna has over 3,500 employees located in more than 17 offices around the world.

Trading remains core to Susquehanna’s business, but the Bala Cynwyd, Pennsylvania-based company also operates in the institutional sales, global private equity and sports analytics sectors.

SIG Insurance owns various insurance-related entities across the value chain. One of its associated firms is Sig Re, a Class 3A Bermuda-domiciled reinsurer that partners with parametric specialist Arbol Underwriters.