View this article online: https://www.insurancejournal.com/news/national/2020/07/29/577287.htm
Insurance broker Acrisure announced that it has acquired artificial intelligence (AI) company Tulco LLC’s insurance practice with the aim of bringing data science, AI and machine learning capabilities to the insurance brokerage industry.
Acrisure said it will harness AI capabilities to innovate in product development and insurance sales and marketing across its portfolio of Agency Partners, a global network of commercial property and casualty, life and employee benefits brokerages.
The deal, which Bloomberg said is valued at $400 million, was transacted as a stock-for-stock trade resulting in Tulco becoming a significant minority shareholder in Acrisure.
Michigan-based Acrisure has grown from $650 million in annual revenue in 2017 to more than $2 billion, completing more than 500 acquisitions the past several years. It is focused on the U.S. small and medium commercial market. The firm is majority-owned by employees and has locations across six countries.
Tulco, based in Pittsburgh, is an alternative investing platform, which utilizes a partnership model between its subsidiaries and its in-house AI lab to help its subsidiaries grow.
The announcement builds on an existing year-long partnership between Acrisure and Tulco. In 2019, the two firms formed Altway Insurance, an AI-backed brokerage focused initially on individual health benefits.
“A significant amount of capital has been deployed into insurtech, but we have a truly unique opportunity for scaled transformation as we layer AI into current processes,” said Thomas Tull, chairman and CEO of Tulco.
Tull is a billionaire businessman who has been active in private equity and the entertainment business. He is the former chairman and chief executive officer of Legendary Entertainment, which has been behind several major films including The Dark Knight Trilogy and The Hangover. He is also part owner of the Pittsburgh Steelers football team.
“Businesses that succeed in the medium to long term must be nimble, data-rich and digitally oriented,” said Greg Williams, co-founder, CEO and president of Acrisure. “The transaction with Thomas Tull and the Tulco team accelerates our ability to do all the above.”
According to the announcement, Tull will be involved in the strategic direction of Acrisure as chairman of a new Acrisure Technology Group. He will assist in attracting key talent as the company further transforms into becoming a data and technology-enabled company.
Also, existing Tulco board members Jim Breyer, founder and CEO, Breyer Capital; A.G. Lafley, former chairman, CEO and president, Procter & Gamble; and Anthony Foxx, chief policy officer, Lyft, and former U.S. Transportation Secretary under President Obama, will serve as advisors to Acrisure.
Other key leaders include Brendan McCord who will become president of the Acrisure Technology Group and Marty Willhite who will serve as a strategic advisor.