Velocity announces sale of Velocity Specialty Insurance Company
Velocity HoldCo, LLC, the former parent company for Velocity Specialty Insurance Company and Velocity Risk Underwriters, announced the sale of VSIC to FM, a property mutual insurance company. This transaction follows the earlier sale of VRU to Ryan Specialty for $525 million, which together represents a full exit of Oaktree Capital Management interests in Velocity through a three-way transaction.
In partnership with Oaktree, Velocity has achieved significant milestones since 2022. Oaktree acquired VRU from Markel in a strategic carve-out with a vision of accelerating growth, enhancing operational capabilities, and driving innovation in products and technology. Since then, Velocity, in collaboration with Oaktree, “transformed into a cutting-edge, hybrid managing general underwriter” through the acquisition and capitalization of VSIC, Velocity’s E&S insurance carrier. Under Oaktree’s ownership the company has expanded its underwriting footprint, diversified its capacity relationships, maintained exceptional client service, and delivered market-leading underwriting results.
“It has been a pleasure collaborating with Phil, Jake, and the rest of the Velocity team, and we are confident in their continued success. Under our ownership, Velocity has achieved remarkable growth, and this transaction with Ryan Specialty and FM firmly positions it as the leading E&S property insurance franchise. We appreciate the partnership from the teams at Ryan Specialty and FM and their dedication and expertise in navigating this complex transaction.” – Greg Share, Oaktree Managing Director.
“Oaktree’s partnership and guidance over the years has been invaluable and we are grateful to the Oaktree team for investing in our success. We look forward to continuing to deliver on VRU’s underwriting and operational excellence as well as expanding our operations with the support of Ryan Specialty.” – Jake Rothfuss, CEO of VRU.
“We have appreciated Oaktree’s confidence in and support of Velocity throughout our partnership, which has been instrumental to our growth. We are thrilled to continue building on VSIC’s momentum with FM. This partnership will strengthen our underwriting capabilities and provide the resources needed to expand our capacity.” – Phil Bowie, Chairman of VRU and CEO of VSIC.
“Velocity is the latest in a series of successful insurance investments for Oaktree. Our work with the Velocity team highlighted Oaktree’s ability to drive transformational value creation in a corporate carve-out, and we look forward to continuing to invest in the industry and bringing our experience and network to our partners.” – Patrick C. George, Oaktree Senior Vice President.
