Managing general agent SageSure will acquire a unit of GeoVera Insurance Holdings focused on earthquake coverage, allowing it to expand into new markets.
SageSure will purchase GeoVera Insurance Services Inc., an existing MGA within the specialty property coverage provider, in a deal that will see it assume underwriting operations of the earthquake franchise, the company said in a statement. The new markets will include Oregon and Washington state, it said.
The amount of the transaction wasn’t disclosed, and SageSure said credit funds managed by its capitol provider Ares Management will provide an expansion to its existing debt facility. It is expected to be completed in the fourth quarter.
“We are excited to enter into an agreement that solidifies SageSure as one of the leading underwriters of catastrophe-exposed property risk in the U.S.,” said Terrence McLean, president and chief executive officer of SageSure, in a statement. “This transaction is a rare opportunity to create significant value for employees and investors of both companies.”
MGA teams from both SageSure and GeoVera MGA will “continue to drive their respective areas of expertise with the common goal of delivering underwriting outperformance,” the statement said.
The transaction will also establish SageSure’s partnership with GeoVera’s insurance carriers, which will provide residential earthquake capacity in California, Oregon, and Washington, and excess & surplus homeowners, commercial habitational, and residential wind capacity in Florida, it said. SageSure’s existing carrier partner SafePort Insurance Company, a unit of Goose Creek Capital Inc., will join GeoVera’s insurance carriers.
“Our MGA team will provide SageSure with additional underwriting expertise and product diversity, while our new carrier partnership will ensure stability and continuity for GeoVera agents and policyholders,” John Forney, president and CEO of GeoVera, said in a statement. “We look forward to the exciting opportunities this partnership will bring.”
Last year, catastrophe-exposed property managing general underwriter SageSure said it had closed a $250 million fundraise led by global broker Amwins and private equity firm Flexpoint Ford.
More recently, Glenn Pomeroy, who served as CEO of the California Earthquake Authority for 16 years, said he was leaving in February to become the executive vice president of marketing and regulatory affairs at GeoVera Insurance Holdings Ltd.
Underwriting entities of GeoVera Investment Group Ltd. have current Best’s Financial Strength Ratings of A (Excellent).
Underwriting entities of Goose Creek Capital Inc., the parent of SafePort Insurance Co., have current Best’s Financial Strength Ratings of A- (Excellent).