BRIE to raise $110 million of surplus financing
Insurance broker The Baldwin Group announced that, in connection with the anticipated launch of its debut Baldwin-sponsored reciprocal insurance exchange, Builder Reciprocal Insurance Exchange (“BRIE”), BRIE has entered into a note purchase agreement to raise $110 million of surplus financing through the issuance of surplus debentures. $95 million of the notes will be funded by an affiliate of Gallatin Point Capital, with the remainder funded by affiliates of Baldwin. The closing of the note purchase agreement and funding of the Notes is expected to occur in the second quarter of 2025, subject to customary closing conditions including applicable regulatory approvals.
As previously disclosed, BRIE will focus on providing capacity for Baldwin’s builder-sourced homeowners book of business, enabling Baldwin’s affiliated managing general agency (“MSI”) to accelerate the transition from its existing carrier partner. At this time, MSI has fully satisfied all conditions necessary to extend the term of its existing Program Administrator Agreement with its existing carrier partner, which will continue to support the book through the transition.
Additionally, an affiliate of Baldwin will serve as the attorney-in-fact of BRIE. Baldwin does not expect to consolidate BRIE’s or the AIF’s financial results. As such, the Notes would not represent additional debt of Baldwin or its affiliates.
“We are extremely excited about the signing of the note purchase agreement with Gallatin Point, a leading financial services investor, which will enable the successful launch of BRIE with $110 million in committed surplus notes. Launching BRIE represents a meaningful milestone in our continued journey to vertically integrate across the value chain and bring innovative, third-party risk capital solutions to market in support of more efficient risk transfer outcomes for our clients.” – Trevor Baldwin, Chief Executive Officer of The Baldwin Group.
“We are thrilled to be partnering with Baldwin on the launch of BRIE. Baldwin’s growth over the past decade has been remarkable, and we are excited to be able to support them through our capital investment as they continue to create innovative insurance solutions for their clients and further grow their builder-sourced homeowners book of business.” – Matthew Botein, Co-Founder and Managing Partner of Gallatin Point.
