Bedrock Insurance Group Holdings LLC (BIGH), based in New York, has agreed to acquire Deerfield Insurance Holdings Inc. and its operating subsidiary Ashmere Insurance Co. (AIC), a workers’ compensation specialty insurance company.
Founded in Fort Lauderdale, Fla. in 2016, AIC operates as a workers’ compensation specialty insurance company focused on rural, low volume insurance producers working with small commercial customers. Ashmere is licensed in 15 states.
AIC is an affiliate of Patriot National Inc., a Fort Lauderdale, Fla., based technology and outsourcing provider that has provided business process outsourcing services for AIC. These BPO services include underwriting, claims settlement, loss control, technology software and premium audit.
Patriot National is currently embroiled in reorganization and bankruptcy proceedings stemming from another of its affiliates, and its biggest customer by far, Guarantee Insurance, being placed in receivership by Florida regulators.
“AJ” Ambuj Jain, an advisor to BIGH on this transaction, said the company will contribute substantial capital to Ashmere and plans to build partnerships with the rural agents who serve small to mid-size accounts.
John Rearer, chief executive officer of Patriot National, said the sale to Bedrock does not mean an end to Patriot National’s relationship with Ashmere. “The commitment of additional capital will allow for significant growth and will enable us to continue to expand Ashmere to our broad network of trusted agents,” he said.
The acquisition is subject to closing conditions, including regulatory approval. Debevoise & Plimpton LLP acted as legal advisor to BIGH in connection with the transaction.
BIGH says it invests globally throughout the insurance industry and seeks to work with “underserved, local independent agents who target small to mid-size insurance markets.”