GeoVera Announces Combination of Its Insurance Carriers with SafePort Insurance Company to Create GeoVera Nova Holdings; Will Simultaneously Sell MGA to SageSure
GeoVera Insurance Holdings, Ltd. ("GeoVera"), a leading provider of specialty property insurance, today announced that it has entered into a definitive agreement to sell its insurance carriers and managing general agent ("MGA") businesses. Upon completion of the transactions, a newly formed entity, GeoVera Nova Holdings, Inc. ("GeoVera Nova"), will control four insurance operating subsidiaries: GeoVera Insurance Company, GeoVera Specialty Insurance Company, Coastal Select Insurance Company, and SafePort Insurance Company ("SafePort"), a property-focused insurance carrier. Additionally, the MGA operations of GeoVera will be acquired by SageSure, one of the largest independent MGAs focused on catastrophe-exposed markets, and GeoVera Nova will become a carrier partner of SageSure.
John Forney and Brian Sheekey, currently CEO and CFO, respectively, of GeoVera, will continue in the same roles at GeoVera Nova. GeoVera's experienced MGA team, including Chief Underwriting Officer Nesrin Basoz, will join SageSure, further enhancing SageSure's catastrophe risk underwriting, claims, and product development capabilities.
"We are thrilled to enter into this agreement," said John Forney, President and CEO of GeoVera. "The structure enhances an already highly diversified, AM Best-rated operating group with expanded access to capital to support future growth. Partnering with SageSure and adding Nesrin Basoz and our outstanding MGA team to their organization ensures the continuity and integrity of all our existing product offerings while opening up exciting possibilities for the future. We appreciate the strong support and value-added partnership we received from our shareholders over the past 12 years and look forward to this next chapter for the company."
As part of the transaction, GeoVera's existing investors, including Flexpoint Ford, New Capital Partners, and AXA XL, will exit as shareholders.
"We are grateful for the partnership we have had with John, Brian, Nesrin, and the broader GeoVera team. GeoVera has developed into one of the leading underwriters of catastrophe risk, and we are thrilled to have been a part of the journey," said Chris Ackerman, Managing Partner of Flexpoint Ford. "On behalf of the shareholders, I want to thank the entire GeoVera team for their tireless efforts over the last 12 years of our partnership that have led to this successful outcome."
The transaction is expected to close in the fourth quarter of 2024, subject to the receipt of required regulatory approvals and other customary closing conditions.
"SafePort looks forward to joining GeoVera's insurance operating companies in the future, which we believe will enable a strong go-forward path toward even greater stability and diversification," said Andy DiLoreto, CEO of SafePort's management company. "We are optimistic about the opportunities it will facilitate to better serve our policyholders."
Insurance Advisory Partners LLC served as exclusive financial advisor to GeoVera. Kirkland & Ellis LLP acted as legal counsel to GeoVera.
About GeoVera Insurance Holdings, Ltd.
GeoVera Insurance Holdings, Ltd. is a provider of specialty property insurance products focused on catastrophe-exposed properties in the earthquake and wind markets, operating on both an admitted and surplus lines basis. GeoVera is headquartered in Fairfield, CA with offices in Sheboygan, WI, Jacksonville, FL and Tampa, FL. GeoVera and its subsidiaries maintain a Financial Strength Rating of A (Excellent) from AM Best. For more information, visit geovera.com.
About SafePort Insurance Company
SafePort Insurance Company provides the protection property owners need to thrive today and to be ready for tomorrow. Rated A- by AM Best and founded in 1978, SafePort is managed by a team of insurance leaders committed to bringing innovative and proven insurance solutions to Southeast, Northeast, and Gulf states. With approximately 50,000 policyholders and more than $165 million of inforce premium, SafePort offers homeowners, dwelling fire, and commercial coverage through SageSure, SafePort's exclusive program manager since 2016. To learn more, visit safeportinsurance.com.
About SageSure
SageSure is the managing general agent specializing in coastal residential and commercial property insurance. SageSure offers more than 50 competitively priced insurance products in 14 coastal states on behalf of its carrier partners, serves more than 550,000 policyholders, and has more than $1.6 billion of inforce premium. Since its launch in 2009, SageSure has been pioneering property insurance through its market-leading online quoting and binding platform and its sophisticated risk modeling and scoring technology. For more information, visit sagesure.com.
About Flexpoint Ford
Flexpoint Ford is a private equity investment firm that has approximately $8.1 billion of regulatory assets under management and specializes in privately negotiated investments in the financial services and healthcare industries. Since the firm's formation in 2005, Flexpoint Ford has completed investments across a broad range of investment sizes, structures, and asset classes. Flexpoint Ford has offices in Chicago, Illinois, and New York, New York. For more information, visit flexpointford.com.
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