Investment Firm KKR Acquiring California’s Integrated Specialty Coverages

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Global investment firm KKR is acquiring a majority interest in Integrated Specialty Coverages (ISC) Carlsbad, Calif.-based multi-line insurance distributor that utilizes advanced artificial intelligence (AI) engineering and data analytics to build its products.

Sightway Capital, a Two Sigma private equity business that partnered with ISC beginning in 2018, is selling its majority position and will continue to hold a stake in the ISC as a minority shareholder.

Financial terms of the transaction were not disclosed.

Founded in 2017 by insurance veteran Matt Grossberg, ISC connects a network of insurance markets and retail/wholesale distribution channels through the use of AI, proprietary technology and data analytics to deliver customized insurance programs for agents, brokers, carriers and reinsurers. ISC currently writes approximately $300 million of specialty premium annually across a growing number of industries including Property, Construction, Transportation, and Hospitality (Bars & Taverns).

Over the past four years, the ISC has grown its platform through strategic acquisitions and partnerships with over 5,000 insurance agencies and brokers. With the investment by KKR, the company plans to continue to strengthen its presence within its core lines of business while expanding its platform to new markets.

Grossberg will continue in his role as chief executive officer and the ISC management team will also remain in place.

KKR is making its investment in ISC through its Americas XII Fund. The investment adds to KKR’s experience of investing in companies in the property/casualty insurance market, including USI, Alliant Insurance Services, Sedgwick and PURE.

Goldman Sachs is acting as financial advisor to KKR, with Kirkland & Ellis acting as legal advisor. Morgan Stanley & Co. LLC is acting as financial advisor to ISC, with Lowenstein Sandler acting as legal advisor on the transaction.

Source: Integrated Specialty Coverages

Topics California Mergers & Acquisitions Excess Surplus

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