Stone Point in $250m exit

The financial services specialist has sold Signal Holdings, a provider of protection programmes and repair services for mobile phones, to New York insurer Assurant.

US private equity firm Stone Point Capital has exited Signal Holdings via a $250 million (€161 million; £126 million) sale to US insurance company and Signal business partner Assurant.

Stone Point took a minority stake in Signal, which provides insurance services to mobile phone users, on behalf of its Trident II fund in 2002 for an undisclosed price.

Signal provides protection programmes and repair services for mobile phones and has an annual turnover of around $330 million through contracts with 4.2 million wireless subscribers.

The insurer’s relationship with Assurant Solutions dates back to 2001. Since that time, Assurant has provided underwriting and marketing support to Signal and Signal has serviced their shared client base.

Signal is led by Tom Cloetingh, president and chief executive officer, and his brother, Steve Cloetingh, executive vice president, who together founded the company in 1984. The Cloetinghs remain at the company as part of the combined company’s senior management.

Stone Point, formerly known as MMC Capital, is currently investing its fourth fund, Trident IV, which closed in September 2007 with $2.2 billion in committed capital. The fund targets investments of between $25 million and $350 million in the global insurance and financial services industries.

The firm’s three prior funds were raised as MMC capital, the private equity subsidiary of professional services company Marsh & McLennan Companies. Marsh & McLennan sold the group to its management team in May 2005 which assumed responsibility for the three Trident funds totaling more than $2 billion of capital.