Specialty insurer Transverse Insurance Group has successfully raised $48 million of additional capital as it looks to grow its hybrid fronting insurance operation this year and beyond.
As well as supporting the planned expansion of its hybrid fronting business, Transverse expects this debt and equity raise to see A.M. Best grant its insurance subsidiaries Financial Size Category VIII.
The company says that achieving this status furthers its ability to take advantage of growth opportunities within its robust pipeline.
The raise, which closed in December 2021, was comprised of a private placement of $30 million aggregate principal amount of senior unsecured notes, and $18 million of follow-on equity capital from incumbent investors.
“We continue to receive strong support from the credit and equity markets which speaks to the quality of our team, business, MGA and reinsurance partners in completing the capital raise,” said President, CIO, and Co-Founder of Transverse, Dave Paulsson.
2021 was a busy year for Transverse. The company entered into a number of new partnerships, acquired Arrowood Surplus Lines Insurance Company, and also launched its Commercial Property Insurance Program in partnership with Lumen Risk Services.
The niche-focused specialty insurer now manages a diverse portfolio of insurance risk with annualised premiums of more than $400 million.
“Transverse is experiencing exceptional demand from high quality MGA partners, and this capital raise allows us to provide additional capacity and expand lines of coverage, capitalizing on the attractive market conditions,” said Erik Matson, Chairman, CEO and Co-Founder, Transverse.