Buckle files for Chapter 7 bankruptcy
Insurance startup Buckle has filed paperwork for Chapter 7 bankruptcy related to Buckle Services, LLC in the District of Delaware. Buckle Services is fully owned by Buckle Corp.
In the filing, Buckle disclosed 50-99 creditors, $0-$50k in assets, and $10M-$50M in liabilities.
Founded in 2017, Buckle publicly disclosed $81 million in equity funding and $35 million in debt. In 2019, the startup launched its rideshare insurance product with a policy that combines personal and commercial coverages. The startup eventually discontinued the coverage and in 2023 it pivoted to a fronting business to serve MGAs. In between, the startup acquired two licensed insurance carriers and one was later sold to General Motors.
Gateway Insurance Company, the carrier still owned by Buckle, provided the following update in a 2024 regulatory filing:
“Gateway continues to assess its future business plans and is working toward a multi-phase capital restoration strategy. In the first half of 2025, the Company aims to finalize agreements with new and existing investors and submit an updated financial plan to regulators. Subject to regulatory approval, Gateway expects to resume selective underwriting activities in 2025, contingent upon surplus levels meeting required thresholds. As detailed in the Company Background section, Gateway was affected by the Vesttoo Fraud through its reinsurance agreements with the Corinthian Group. As of December 31, 2024, Gateway’s surplus stands at approximately $2.5 million, resulting in a Risk-Based Capital (RBC) ratio of 115%. In response to its capital levels due to the fraud, Gateway has either terminated or suspended its Managing General Agent (MGA) programs and ceased writing new business.
The company is currently collaborating with regulators to safeguard its policyholders’ interests and is engaged with existing and potential investors to devise a capital plan aimed at restoring the company’s capital to a satisfactory level. Furthermore, Gateway intends to pursue claims against third parties involved in the Vesttoo Fraud.
Operationally, Gateway has made strides in simplifying its legacy business into an insurance fronting carrier. The team has streamlined operations by outsourcing its in-house claims processing, discontinuing its affiliated MGA program, optimizing internal processes, and minimizing redundancies. Gateway cautions readers regarding certain forward-looking statements contained in the foregoing and elsewhere in any other statements made by, or on behalf of the Company. To the extent the above comments about future plans constitute forward-looking statements, these statements are not guarantees of future performance. Forward-looking statements are based on current expectations and projections about future events and are subject to risks, uncertainties and assumptions about the company, economic and market factors, judicial rulings, and the insurance industry, among other things. Actual events and results may differ materially from those expressed in forward-looking statements.”
