Transverse Insurance Group, a hybrid P&C program and fronting carrier specialist, has been acquired by MS&AD Insurance Group Holdings, through its Mitsui Sumitomo Insurance arm, the insurer has confirmed.
The acquisition has received all customary approvals and has been completed. Transverse is now a wholly owned subsidiary of MS&AD as it has acquired all the Group’s outstanding shares.
According to the insurer, the deal extends Transverse’s reach and expands MS&AD’s access to North American markets.
Erik Matson, Co-Founder, CEO, and Chairman of the Board of Transverse, said: “We are proud to finalize this acquisition which will allow Transverse to continue delivering best in class fronting capacity to the program and reinsurance markets.
“The global reach of MS&AD and Transverse’s pipeline will propel the business forward in 2023 and beyond.”
The acquisition follows the expansion of existing and several new MGA partnerships in 2022, with Transverse growing its portfolio of insurance risk, said the insurer.
Transverse is experiencing exceptional demand from high quality MGA partners, especially considering the MS&AD announcement.
President and Co-Founder of Transverse, Dave Paulsson said: “Our team is excited about the future ahead with MS&AD and clearly sees how well the Transverse model fits within the MS&AD family of companies.
“We look forward to working hand-in-hand with the MS&AD team to bring the best fronting solution to the market. This acquisition is a testament to the team’s hard work building a business that achieved attraction from one of the largest and most prominent insurance carriers in the world.”
Back in August 2022, MSI announced its plans to acquire the specialty insurer after rumours of a potential deal surfaced a week prior.
MSI did not disclose a price for the purchasing of Transverse, formerly owned by Virgo Investment Group, but reports from Japanese newspaper the Nikkei suggested the deal could be worth roughly $400 million.
