Risk and insurance management service provider Kane will have the advantage of being able to tap into an extensive global network of operations following its acquisition of the insurance management operations of HSBC.That is according to Roy Fellowes, global managing director of the company’s management business, whose team moved into new offices in Cumberland House following the announcement of the takeover worth $27.5 million in cash in March.In an interview with The Royal Gazette, Mr Fellowes said that the new company which has become the largest global independent insurance manager as a result of the deal and was in a unique position in terms of its offering between the broker manager and the small independent manager.The new company, which provides captive management, insurance-linked securities administration (cat bonds and side cars) and life, pension and investment administration services (for life insurance companies), now comprises Kane (Bermuda) Ltd, Kane (Cayman) Ltd, Kane (USA) Inc, Kane (Guernsey) Ltd and Kane (Malta) Ltd, , in addition to its operations in London and the Middle East.Mr Fellowes said that added to this was a compliance and risk based culture, proven track record and diversity of business which would set Kane apart from its competitors and enable the company to capitalise on existing and new opportunities.HSBC’s insurance management business had been in operation for more than 25 years, starting in the Cayman Islands before being granted a management licence for its Bermuda operations in 1999. The group also expanded into Guernsey primarily to look after its own captive and went on to develop management operations in the US and Malta, where it obtained a licence four years ago.Having built itself up into the fourth largest insurance manager in the world with a presence across numerous domiciles, the bank decided to focus on its core business of banking and bank insurance, selling off its insurance broking business 18 months ago.At the same time Kane was looking to establish itself as a big global player and expand its operations and the HSBC insurance management business was the perfect opportunity and fit and despite a lot of interest from other parties Kane was selected by the management of HSBC and the deal was closed this week.“It’s an extremely good fit for both entities,” said Mr Fellowes. “Kane had focused its attention on the Middle East and Europe and HSBC’s insurance management’s focus had been on the Americas, Guernsey and Malta so there is virtually no overlap in domiciles or the personnel.“Kane has acquired a large portfolio of clients that is very mature, diverse and stable.“It has also acquired a group of highly qualified and experienced insurance professionals who have an excellent market reputation for delivering quality client service.”The new company, which has received regulatory approval, has approximately 350 insurance clients and a staff base of 120 worldwide and 38 based in Bermuda - all of whom accepted positions with the firm.Mr Fellowes said that it had been a smooth transition with the same structure and management team kept in place to ensure a seamless switchover for its clients as well as a similar culture between the two entities. The move was backed by private equity firm CBPE Capital.“The level of controls and compliance from our time with HSBC is part of our DNA, and is one of the key factors that our clients really like about us,” he said.“The move also gives us a very large global footprint which enables us to be domicile neutral and find the best fit for our clients in terms of where they are going to be located.“I think the appeal for a lot of us from the HSBC side when we heard Stephen May, the group CEO, talk about the vision of Kane going forward was that it was really the same vision as we wanted to do within HSBC before and now we are able to realise that ambition under the umbrella of Kane.”Mr Fellowes, who was formerly CEO of HSBC Insurance Management (HIM) and was managing director of HSBC’s insurance business in Bermuda for 22 years, will be responsible for driving the group’s global strategy in his new role.In the future he plans to bed in the new part of the business initially and continue to maintain and further Kane’s position as the leading independent insurance manager while looking for more acquisition opportunities and to expand into new regions based on demand. He is also charged with developing existing and new customer relationships and new channels of distribution.“Coming out of a very large financial institution into a much smaller but very focused business in which we have a lot of say in the direction it is going to take, means it is a very exciting time for the staff and the future of the company,” he said.The move to the new offices came about with the expiration of the lease on its previous offices in the Continental Building on Church Street and being notified of the availability of the new space by Catlin.The offices, which were formerly occupied by Catlin, who furnished them to a high standard include an open plan floor with offices for the management, a conference room that can be divided in two, meeting rooms, a kitchen area and shower facilities.The company is planning an official launch next month with a reception for business associates at its offices.Mr May, who is based in London, said: “This is a fantastic achievement for Kane and we are all extremely proud of how we have successfully united these two companies to create a truly international platform from which to deliver our expert, independent advice. Our aim now is to enhance our existing customer relationships, create new ones, build on our range of world-class services, grow our industry-leading team and seek new opportunities to strengthen our leading position in the insurance management arena.”Kane also this week announced the appointment of Keith Tozzi as group chairman of Kane Insurance Management. Mr Tozzi has held numerous chairmanships of public and private companies, and has a track record in leading companies through periods of structural change.Mr Tozzi said: “It is an exciting prospect to lead Kane at this time when it is on the brink of significant growth and development. The purchase of HIM represents the first in a series of steps as Kane looks to expand its capabilities and I look forward to working with Stephen and the rest of the team as we see this through to fruition.”Further appointments will be announced shortly.