Summary: Hyperion Insurance Group Ltd.

Growing player in the niche specialty insurance brokerage and underwriting agency sector, with good geographic diversity relative to its size. Strong relationship focus and broad, innovative product offering, fostering strong retention rates. Limited scale given lack of presence in deeper mainstream insurance brokerage market. Softer pricing in emerging markets, alongside ongoing acquisition and integration costs, and relatively high central overheads, all weighing on profitability. Highly leveraged credit metrics due to forecasted adjusted debt of about £1,050 million, including about £100 million of contracted payments to minority shareholders, earn-outs, and contingent liabilities. Forecasted debt to EBITDA that will remain above 6x, with funds from operations cash interest coverage of over 2.5x in financial years 2018 and 2019. Expectation of continued bolt-on

...Business Risk: Fair Financial Risk: Highly leveraged + Growing player in the niche specialty insurance brokerage and underwriting agency sector, with good geographic diversity relative to its size. + Strong relationship focus and broad, innovative product offering, fostering strong retention rates. + Limited scale given lack of presence in deeper mainstream insurance brokerage market. + Softer pricing in emerging markets, alongside ongoing acquisition and integration costs, and relatively high central overheads, all weighing on profitability. + Highly leveraged credit metrics due to forecasted adjusted debt of about ú1,050 million, including about ú100 million of contracted payments to minority shareholders, earn-outs, and contingent liabilities. + Forecasted debt to EBITDA that will remain above 6x, with funds from operations cash interest coverage of over 2.5x in financial years 2018 and 2019. + Expectation of continued bolt-on acquisitions. + Limited likelihood of significant near-term...

Summary