Fronting
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Executives spoke about the increasing sophistication of the programs market, and the heightened expectations placed upon MGAs looking to secure capacity. -
“The fronts are having a material effect and business is absolutely roaring within the MGA program space at this point in time,” the Acrisure Re CEO said.
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Late-stage interest had come from New Mountain, Atlas Merchant and Centerbridge.
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The three-way tug of war over fronting business Clear Blue is the latest example of the appetite of buyout firms for insurance assets.
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Sources suggested that the business will fall short of the $600mn-$650mn valuation that was being targeted.
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The program will focus on the self-storage market.
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The Austin-based insurance firm recently provided capacity to CRC-owned 5Star Specialty, and it plans to write business in all 50 states by the end of next year.
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Century Equity Partners and WT Holdings are backing the new venture.
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The CEO said the partnership would provide an "outstanding opportunity" to diversify the business.
