Private equity firm Genstar Capital said it has sold a significant interest in Insurity, an insurance processing and data integration software business, to TA Associates, a Boston-based private equity firm.
San Francisco Genstar acquired the insurance software business from LexisNexis in 2011 and, working with the firm’s original founder Jeffrey Glazer, established it as an independent company and rebranded it as Insurity.
Headquartered in Hartford, Insurity provides policy administration, claims, billing, and analytics software to more than 100 insurance companies.
TA Associates, based in Boston, has investments in communications, financial services, healthcare, technology and other sectors.
When Genstar bought the software business from LexisNexis, Glazer returned to Insurity as president and chief executive officer under Genstar.
Glazer said the company has achieved double-digit revenue growth and more than tripled ts profitability since then.
“With the support of a committed team at Genstar, and as an independent company with a new name, we were able to begin the transformation of the company,” said Glazer. We see continued opportunities to expand into synergistic new product offerings, in addition to further strengthening our core business.”
J. Ryan Clark, managing director of Genstar who heads the firm’s financial services practice, called the Insurity deal a successful investment for Genstar and a “great example of the Genstar playbook in action.”
“We leveraged our expertise and executive network across the financial services and software verticals to identify a unique investment opportunity; we partnered with a great management team; we augmented the board with experienced industry executives from our network; and we provided the capital to make strategic product investments and complete an accretive acquisition,” Clark said.. “We are thrilled with the success of the company and are excited to continue as investors and partners with Insurity and TA Associates.”
Genstar said Insurity represents its fourth successful investment realization this year. The firm sold Evolution1, a consumer directed health payments and technology company; ConvergeOne, a communications and managed services firm, and; TravelClick, a global provider of cloud-based software solutions to the hospitality industry.
TA Associates is joining Genstar and Clark on the board of directors.
Glazer began his career with The Hartford Insurance Group in both personal and commercial lines insurance and technology. In 1985, he founded his own insurance software company. That company, Programming Resources Co., now known as Insurity, was purchased by Equifax in 1994. At Equifax, Glazer served as vice president of the insurance division. After ChoicePoint spun off from Equifax in 1997, Glazer joined ChoicePoint’s insurance division. ChoicePoint was acquired by Reed Elsevier in 2008 and integrated into LexisNexis. At LexisNexis, Glazer was responsible for the insurance business, which included software as well as data, fraud and claims solutions and the Insurance Exchange, which LexisNexis closed down in February, 2013.
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