FM, a commercial property insurer, has confirmed its acquisition of Velocity Specialty Insurance Company (VSIC), Velocity’s wholly owned E&S insurance carrier, with the deal expected to close in the first half of 2025.
This acquisition follows a broader announcement covered yesterday, in which Ryan Specialty agreed to acquire Velocity Risk Underwriters for $525 million. As part of this, FM has reached an agreement in principle to acquire VSIC.
As the frequency and severity of secondary perils and emerging risks increase, businesses are increasingly turning to E&S coverage for risks that traditional insurance may not address. This acquisition allows FM to expand its expertise and offerings to include E&S property insurance.
The combination of VSIC’s E&S insurance capabilities and FM’s strong position in the global commercial property insurance market will help support new business initiatives.
Malcolm Roberts, Chairman and CEO of FM, said, “VSIC’s focus on property insurance and expertise in understanding the new risk landscape that many businesses face align perfectly with FM’s mission.”
He added, “Moreover, this transaction may eventually allow us to provide our clients with an even broader suite of products and solutions to meet risks today and in the future. We are excited to welcome VSIC to the FM family.”
