Truist Insurance Continues Its Expansion with the Acquisition of Insurtech Wellington
December 7, 2020
Truist Insurance Holdings, Inc., a subsidiary of Truist Financial Corporation, announced today that it will complete five insurance acquisitions this quarter, adding over $100 million of combined annual revenue to its wholesale division.
“Insurance is a key business for Truist, and one we will continue to grow,” said Kelly S. King, Chairman and CEO of Truist Financial Corporation. “Delivering insurance solutions to our clients is a core strategy – helping us deepen relationships, diversify our revenue stream, and build better lives and communities.”
The most recent of these transactions is the acquisition of Wellington Risk Holdings, Inc., an industry-leading Insurtech that operates as a managing general agent (MGA) in the admitted residential property markets, with a strong presence in Texas. Wellington has developed a virtual marketplace offering that includes an easy-to-use agent portal and unique pricing flexibility, resulting in competitive products and superior underwriting performance.
“The acquisition of Wellington provides a terrific opportunity to further build our business and reflects the importance we place on innovation,” said John Howard, Chairman and CEO of Truist Insurance Holdings. “Through the use of technology, Wellington has found a better way to place residential property insurance. We are very excited about the opportunities we’ll have together, including the ability to expand Wellington’s business beyond its current footprint.”
Wellington will retain its name and will join forces with AmRisc, Truist Insurance Holdings’ MGA that underwrites catastrophe and specialty insurance for commercial property. AmRisc shares a similar entrepreneurial and innovative culture with Wellington.
The three previously closed transactions this quarter are W. Brown & Associates Property & Casualty, an Irvine, CA-based surplus lines broker and MGA; Specialty Risk Associates, a Shreveport, LA-based surplus lines broker and MGA; and Program Insurance Management of Sarasota, a Sarasota, FL-based managing general underwriter with specialized programs for industrial chemical manufacturers and distributors. In addition to Wellington, Truist Insurance Holdings expects to close a transaction with Fidelis Group Holdings, a Covington, LA-based provider of specialty insurance products for the marine and cargo industries, by year end.
RBC Capital Markets and Truist Securities served as financial advisors to Truist. Willkie Farr & Gallagher LLP served as legal counsel to Truist in this transaction.