Gallatin Point Capital partners with American Family on TRUE
Gallatin Point Capital and American Family Insurance announced the successful closing of a new partnership whereby funds managed by Gallatin Point will acquire a majority stake in the attorney-in-fact for Trusted Resource Underwriters Exchange, a reciprocal insurer established by American Family in 2020 to serve homeowners in storm-prone regions of Florida and other parts of the country.
Gallatin Point is investing over $1.25 billion into TRUE, enabling it to provide underwriting capacity in Florida and strategically expand its footprint nationally. TRUE will utilize a partnership distribution model both through new and existing partnerships. American Family will remain a minority owner in the attorney-in-fact and continue providing distribution and client services such as claims handling and call center support.
To lead TRUE, Gallatin Point has assembled a team of insurance industry executives, including Fabian Fondriest, former American Family Direct president, and former chairman and CEO of Homesite Insurance, as TRUE’s executive chairman, and Tony Scavongelli, former head of partnerships at American Family, as TRUE’s incoming CEO.
“We are excited to be part of TRUE’s journey as it enters a new phase of growth, and we believe that our investment aligns perfectly with TRUE’s long-term vision and Gallatin Point’s commitment to the insurance sector. The regulatory changes in Florida present a unique opportunity for us to contribute to the stability of the market and provide crucial support to homeowners in the region. With TRUE’s leadership team, combined with the strength of American Family’s industry expertise and our capital investment, we are confident in the prospect of TRUE supporting homeowners as a fully national insurance company over time.” – Matthew Botein, co-founder and managing partner of Gallatin Point.
“This partnership reflects American Family’s commitment to providing high quality insurance options for homeowners nationwide. The ongoing relationship between American Family and TRUE will enable us to serve more customers in catastrophe exposed regions.” – Michael Lorion, president of American Family Direct and Homesite.
