Transverse Insurance Group raises $48 million

Transverse Insurance Group, a niche-focused specialty insurer, has raised $48 million of additional capital to support the planned expansion of its hybrid fronting insurance business in 2022 and beyond.

The $48 million raise was comprised of a private placement of $30 million aggregate principal amount of senior unsecured notes and $18 million of follow-on equity capital from incumbent investors.

The capital raise follows the closing of several new MGA partnerships in 2021, with Transverse now managing a diverse portfolio of insurance risk with annualized premiums in excess of $400 million.

Transverse expects that with this capital infusion, the Group’s insurance subsidiaries will reach A.M. Best Financial Size Category VIII, thereby furthering its ability to capitalize on growth opportunities within its robust pipeline.

“We continue to receive strong support from the credit and equity markets which speaks to the quality of our team, business, MGA and reinsurance partners in completing the capital raise.” – President, CIO and co-founder of Transverse, Dave Paulsson.

“Transverse is experiencing exceptional demand from high quality MGA partners, and this capital raise allows us to provide additional capacity and expand lines of coverage, capitalizing on the attractive market conditions.” – Erik Matson, chairman, CEO and co-founder of Transverse.