EQT has reached a $2bn deal to acquire London-based insurance broker McGill and Partners, marking private equity’s latest move in the sector. The Swedish buyout group is acquiring McGill from backer Warburg Pincus, according to a statement on Friday. Warburg Pincus helped establish the broker alongside former Aon group president Steve McGill in 2019.

The sale follows KKR’s $17bn agreement to sell USI Insurance Services to Aon, one of the largest-ever gains by a public private equity firm. Matthias Wittkowski, an EQT partner who led the deal, said McGill had “been on our radar for a long time” and that EQT sought “market leaders in niche markets benefiting from secular trends.” EQT will acquire majority control, with McGill management retaining a stake. The broker, employing about 600 people, sells coverage for risks including cyber attacks and wartime shipping through the Strait of Hormuz.

It is expected to generate about $100mn of annual EBITDA in the current financial year, up from $60mn last year. Despite falling prices in specialty insurance due to low losses and increased competition, EQT plans to expand McGill’s operations globally, particularly in the US, and invest in technology. Steve McGill noted the firm avoided broker bureaucracy, invested in data and technology, and has no legacy systems, positioning it to benefit from AI efficiencies.

EQT recently acquired Intertek for £10.7bn and is preparing a potential IPO of its insurance group CFC.