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Hickory Brooke Reinsurance Company (Hickory Re)

Reinsurance
PE-OWNED

What PE Will Likely Do

Hickory Brooke Reinsurance Company (Hickory Re) will increase reinsurance premiums for its clients to service the debt incurred from the acquisition

HIGH LIKELIHOODBased on: TPG Capital's track record of cost-cutting, debt loading, and reducing product quality in its acquisitions

Hickory Re will reduce the quality and coverage of its reinsurance policies, potentially offering less comprehensive protection to its clients

HIGH LIKELIHOODBased on: The common PE tactics employed in the reinsurance industry, including debt loading, dividend recapitalization, and deferred maintenance

Hickory Re will likely defer maintenance and upgrades to its core reinsurance infrastructure, leading to potential disruptions in service and reliability

HIGH LIKELIHOODBased on: The similarity of this case to past PE-backed bankruptcies in the media and retail sectors

Expected Timeline

0-6 monthsCompleted

0 to 6 months months

Announcements about 'optimizing' Hickory Re's reinsurance offerings and 'enhancing operational efficiency'

6-12 monthsYOU ARE HERE

6 to 12 months months

Clients of Hickory Re start reporting increases in premiums and reductions in policy coverage

12-24 months

12 to 24 months months

Hickory Re's reinsurance products show signs of deterioration, with more exclusions, higher deductibles, and longer claims processing times

24-48 months

24 to 48 months months

Rumors of Hickory Re's financial distress begin to circulate, leading to further cuts in service quality and client defections

48-60 months

48 to 60 months months

Potential bankruptcy, restructuring, or fire sale of Hickory Re's remaining assets

What You Can Do

Actions

  • Clients of Hickory Brooke Reinsurance Company (Hickory Re) should closely monitor their reinsurance policies for any changes in coverage, premiums, or claims processing times

  • Clients should consider diversifying their reinsurance providers to mitigate the risk of potential disruptions or service degradation at Hickory Re

  • Clients should maintain open communication with Hickory Re and be prepared to explore alternative reinsurance options if the quality of service declines

Alternatives

Research independent alternativesSAFE

Look for family-owned or employee-owned businesses

Share this company's PE status

"Hickory Brooke Reinsurance Company (Hickory Re) is now PE-owned. Here's what that means for you."