Heritage has announced an extensive strategic partnership with insurtech Slide, a deal that will see the property and casualty insurance holding company enhance its underwriting and rating decision capabilities with new technologies.
Heritage is set to take a 6% equity stake in the insurtech P&C carrier, as well as a perpetual, royalty free license to certain aspects of its software.
Slide was launched recently after securing a $100 million Series A funding round, led by Gries Investment Funds and Tampa Bay Ventures.
The partnership is seen as a way for Heritage to capitalise on strong agency relationships via the generation of commission income on policies that don’t usually meet its underwriting criteria.
It’s also considered a potentially meaningful capital gain, which, if realised, could provide additional funds for share buybacks or debt retirement.
Concurrently, Heritage will be transferring ownership of Pawtucket, a dormant P&C carrier licensed in Rhode Island.
Ownership of First Access Insurance Group, a Florida-licensed MGA with minimal earnings, will also be transferred, while access access to historical claims and underwriting data will be provided.
“We’re excited to partner with Slide and our former colleague on this win-win opportunity,” said Ernie Garateix, Heritage’s Chief Executive Officer.
“We believe this partnership will significantly accelerate development of our InsurTech capabilities, while providing us with an equity stake in an impressive startup that is developing cutting edge technology.”