SageSure to acquire GeoVera MGA
SageSure, an MGA focused on catastrophe-exposed markets, has entered into a definitive agreement to acquire GeoVera Advantage Insurance Services, an existing MGA within the specialty property insurance provider GeoVera Insurance Holdings. Upon the transaction’s completion, SageSure will assume the underwriting operations of GeoVera MGA’s residential earthquake franchise.
With the addition of the GeoVera MGA’s earthquake expertise, the transaction will further enhance SageSure’s catastrophe risk underwriting capabilities and accelerate its entrance into new markets, including Oregon and Washington.
The transaction will also establish SageSure’s partnership with GeoVera’s insurance carriers, which will provide residential earthquake capacity in California, Oregon, and Washington, and E&S homeowners, commercial habitational, and residential wind capacity in Florida. SageSure’s existing carrier partner SafePort Insurance Company will join GeoVera’s insurance carriers, enhancing an already strong, well-capitalized, and diversified AM Best-rated carrier group.
To support the transaction, credit funds managed by Ares Management, SageSure’s long-standing capital provider, will provide an expansion to SageSure’s existing debt facility.
The transaction is expected to close in the fourth quarter of 2024, subject to the receipt of required regulatory approvals and other customary closing conditions.
Upon completion of the transactions, a newly formed entity, GeoVera Nova Holdings, will control four insurance operating subsidiaries: GeoVera Insurance Company, GeoVera Specialty Insurance Company, Coastal Select Insurance Company, and SafePort Insurance Company, a property-focused insurance carrier.
As part of the transaction, GeoVera’s existing investors, including Flexpoint Ford, New Capital Partners, and AXA XL, will exit as shareholders.
“We are excited to enter into an agreement that solidifies SageSure as one of the leading underwriters of catastrophe-exposed property risk in the US. This transaction is a rare opportunity to create significant value for employees and investors of both companies. The addition of Nesrin Basoz and the GeoVera MGA team will ensure continuity in GeoVera’s product offerings and a seamless experience for GeoVera distributors and policyholders.” – Terrence McLean, President and CEO of SageSure.
“We are proud to partner with SageSure on this innovative transaction. Our MGA team will provide SageSure with additional underwriting expertise and product diversity, while our new carrier partnership will ensure stability and continuity for GeoVera agents and policyholders. We look forward to the exciting opportunities this partnership will bring.” – John Forney, President and CEO of GeoVera.
