New York-based private equity firm Aquiline Capital Partners is to become the majority investor in Wellington Insurance Group, a Texas-based risk distribution business specialising in the delivery and administration of residential property insurance.
Principal operating subsidiaries include Wellington Risk Insurance Agency, a managing general agency, Wellington Claim Service, and Wellington Premium Finance, (collectively, Wellington).
“We are excited and fortunate to be partnering with Aquiline. Aquiline’s deep industry knowledge, operating expertise and broad network will help further strengthen our current capabilities and allow us to better serve the needs of our carrier and distribution partners and our policyholders,” says Paul Poston, CEO of Wellington. “They are the ideal partner for Wellington as we embark on this new chapter of business development.”
Wellington’s platform offers a differentiated value proposition to both its customers, retail agents, and numerous strategic admitted insurance carrier partnerships. Specific risk attributes of a prospective policyholder are evaluated and then allocated the proper price and coverage combination at the point of sale. The mechanism provides agencies access to an efficient 'Virtual Marketplace' for which the agent is assured Wellington is responsible for delivering every element of the consumer experience. Insurance carrier partners benefit from more granular risk segmentation provided by Wellington’s multi-carrier platform.
“Wellington’s underwriting model provides a clear competitive advantage,” says Jeff Greenberg, Chief Executive of Aquiline. “Wellington has demonstrated the ability to scale its platform with the right distribution and carrier relationships and is well-positioned for growth through geographic expansion. We look forward to partnering with the experienced management team at Wellington.”
The transaction is subject to customary closing conditions, including regulatory approvals, and is expected to be completed in the first quarter of 2016. No financial terms have been disclosed.
partner Dale Gabbert with assistance from funds associate, Claire Barnes, along with partner and sanctions specialist, Stephen Gentle.
;tab-stops:28.3pt 56.65pt 85.0pt 113.35pt 141.7pt 170.05pt 198.4pt 226.75pt 255.1pt 283.45pt 311.8pt 340.15pt; mso-layout-grid-align:none;text-autospace:none'>Having completed a number of K-Note transactions in the US between 2009 and 2011, Karson obtained favourable guidance from OSFI in June of 2011, which OSFI re-confirmed in December of 2013 following a revision of capital requirement regulations for Canadian insurance and reinsurance companies. Under the transaction, the K-Note was rated by both Standard & Poor’s and DBRS.
