Warburg Pincus is exploring a potential sale of McGill and Partners, the London-based insurance broker, according to sources close to the matter. The private equity firm has held discussions about exiting its investment, which could fetch around $1 billion. McGill and Partners operates in the specialized UK insurance market, providing services to commercial clients across various sectors. Warburg Pincus acquired the firm in 2019, betting on growth in the insurance brokerage space.

Since then, the company has expanded its footprint through strategic acquisitions. Private equity interest in insurance brokers remains strong, driven by recurring revenue streams and steady demand for risk management services. Potential buyers could include other financial sponsors or strategic acquirers looking to expand their presence in the UK market.

The sale process is in early stages, and Warburg Pincus may ultimately decide to retain its stake. Market conditions and valuation expectations will likely influence the final decision.