Preservation Capital Partners, the private equity firm that purchased cyber and specialty lines managing general agent (MGA) Ascent Underwriting last year, has announced a strategic investment in Cove Programs, a U.S construction-focused MGA.
Alongside an undisclosed financial investment, the agreement will see executives from Ascent and Cove come together to drive forward value creation for brokers, markets and clients.
Ascent and Cove will, however, continue to operate under their respective brands.
Following the deal Cove will reportedly manage in excess of $200 million gross written premium (GWP), positioning it as one of the largest independently owned emerging risk and specialty lines MGAs.
Kevin Hastings, Founder and Managing Director of Cove, will become Chief Executive of the combined group, clarifying, “We are uniting at a corporate level, however there will be no change in who does what from day to day. Instead we will realise synergies between our two entirely complementary businesses.”
“Together we have no business overlap; only opportunity. For example, Cove’s clients include over 60 top US homebuilders and 70 top commercial general contractors. Ascent’s cyber insurance products will be extremely valuable to them.”
David Umbers, Ascent’s Chief Executive Officer, will become Executive Chairman of the combined group and commented, “Joining with Cove will give us important critical mass. Like Ascent, Cove Programs are innovators; by driving forward together we will have greater breadth and resources to serve our brokers and clients. It will also extend each companies’ distribution, both inwards and outwards.”
“We are excited by the combination and growth opportunity that lies ahead of us, and together will focus on continued organic growth with the objective of significantly scaling the business.”
Jatender Aujla, a Partner of Preservation Capital, added, “Ascent has made significant progress since our initial investment just over a year ago, particularly in the areas of product development and distribution.”
“Cove is an extremely impressive business with a focus on highly specialised niches generating superior underwriting and insurance placement results. The companies have highly respected brands, the loyalty of brokers and customers, and incredibly experienced management teams supported by industry-leading specialists.”
“Together they comprise a very strong business possessing all the ingredients for controlled, successful growth focused on generating superior underwriting results while serving the broad needs of their brokers and clients.”
