Specialty insurer Core Specialty Insurance Holdings, Inc., along with its subsidiaries, has signed a purchase agreement to make a minority investment in Gramercy Risk Holdings, LLC, which provides property and casualty insurance programs for specialty classes of business, including New York Contractors.
The funds from the investment are planned to be used for growth initiatives at Gramercy and its subsidiaries.
The completion of the transaction is expected in Q2 2024, conditional upon obtaining required regulatory approvals.
Core Specialty’s insurance subsidiaries will become the exclusive policy-issuing carriers for Gramercy products.
Jeff Consolino, Core Specialty’s Founder, President, and Chief Executive Officer, said, “We are delighted to announce our investment in Gramercy and to become the exclusive capacity provider for Gramercy’s insurance products.
“Bill Fishlinger, Gramercy’s Chairman and Chief Executive Officer, has a strong track record of successful development and ongoing management of insurance companies, consistently producing combined ratios that outperformed the property and casualty industry for over 30 years.”
Core Specialty will appoint two new members to Gramercy’s Board of Directors, Chris Watson and Scott Snyder, as part of the transaction.
Watson has served on the Core Specialty Board since its recapitalization in November 2020, while Snyder is President, Fronted Programs at Core Specialty.
Matt Fishlinger, Chief Operating Officer of Gramercy, commented, “Our partnership with Core enhances Gramercy’s ability to deliver best-in-class specialty programs to our brokers and insureds, positioning us well for future growth.”
