LONDON and ATLANTA, Dec. 21, 2020 /PRNewswire/ -- Accelerant Holdings ("Accelerant" or the "Company"), an underwriting group that specializes in serving a carefully selected and managed network of member managing general agencies ("MGAs"), today announced its expansion into the U.S. market, as well as AM Best's re-affirmation of its group A- (Excellent) rating. The A- mark is in AM Best's Financial Size Category VIII, for companies with $100 - $250 million in adjusted policyholders' surpluses.
The group rating is inclusive of both its existing Malta-based carrier, Accelerant Insurance Limited, as well as its newly established carriers in Belgium, Accelerant Insurance Europe Limited, and Arkansas, Accelerant Specialty Insurance Company ("ASIC"). ASIC will serve as Accelerant's platform for writing excess and surplus lines business in the U.S. The Company plans to announce the acquisition of an admitted carrier in early 2021, once approved by regulators.
Accelerant was formed in October 2018 with the goal of providing a unique, technology-enabled capacity solution to MGAs in the UK and European markets. Primarily focusing on low volatility, small commercial business, Accelerant is highly underwriting-driven and retains a significant share of gross written premium in order to properly align incentives with both its MGA and reinsurance partners. Leveraging sophisticated data analysis of its underlying MGAs' books of business, as well as a long-term capacity commitment, Accelerant utilizes technology to improve loss ratio performance and enable its partners to grow continually and profitably. In February 2019, Altamont Capital Partners ("Altamont"), a middle market private equity firm focused on making long term investments, made an initial investment in Accelerant. Since then, Altamont has provided additional equity to Accelerant to fund the capitalization of its carriers in Europe and the U.S.
"Since our founding, we've maintained a strong focus on providing best-in-class MGAs with a low stress, high value relationship that delivers predictable, long-term capacity and a responsive, collaborative approach," said Jeff Radke, CEO of Accelerant. "The need for this service in the U.S. market is as great as it is in the UK and European markets, and we're excited to provide our future MGA members with an alternative to the conflicts, bureaucracy and short-term commitments inherent with traditional capacity solutions."
Joe Zuk, President of ASIC, added, "We've recruited an extraordinarily talented team to lead Accelerant's U.S. business. Rich Koehler, John Willemsen, Hugh Burgess, and the rest of the team are seasoned insurance industry veterans, who will be significant contributors to the dual mandate of helping Accelerant build a market-leading business in the U.S. while enabling our MGA members' success."
"We have long been active investors in the U.S. MGA market," said Sam Gaynor, Managing Director of Altamont. "Our team has a keen understanding of the need for Accelerant's approach of bringing differentiated technology, a seasoned, forward-thinking team, and well-capitalized, A- rated paper to best of breed MGAs. With our long-term investment horizon, we look forward to continuing to support Accelerant's growth across the U.S., U.K. and Europe."
About Accelerant Holdings
Accelerant Holdings is an underwriting group that specializes in serving a carefully selected and managed network of Member MGAs in Europe and the U.S. Accelerant has an established strategy and a powerful customer value proposition, executed by a proven management team, utilizing seasoned relationships to create and control an attractive insurance portfolio serving small and medium-sized enterprises. Accelerant Insurance has been awarded an AM Best A- (Excellent) rating ensuring our Members and their customers can be confident that Accelerant has the financial strength to support them when they need it most. For more information, please visit accelins.com.
About Altamont Capital Partners
Altamont Capital Partners is a private investment firm based in the San Francisco Bay Area with more than $2.5 billion of assets under management. Altamont is focused on investing in middle market businesses where it can partner with leading management teams to help its portfolio companies reach their full potential. The firm's principals have significant experience building business success stories across a range of industries, including financial services, healthcare, consumer/retail, industrials, and business services. Within the insurance industry, Altamont is either a current or past investor in McLarens Global Claims Services, Celestite Holdings, Embark General, Kuvare Holdings, and Accelerant Holdings.
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SOURCE Accelerant Holdings