(Image source: GI Partners homepage.)
Insurity, Inc., a Hartford-based provider of software to the property/casualty industry, has announced a definitive agreement for a recapitalization transaction with GI Partners, a San Francisco-based middle-market alternative asset manager. In partnership with the company’s senior management team, GI Partners plans to accelerate Insurity’s growth as the company aims to expand its leadership in policy administration and related software solutions and leverage GI Partners’ experience in add-on acquisitions.
Jefferies LLC (New York) acted as sole financial advisor to GI Partners. Lazard (New York) acted as lead financial advisor to Insurity and BofA Merrill Lynch acted as a co-advisor on the transaction. Insurity’s current investors are TA Associates (Boston), General Atlantic (New York), and Genstar Capital (San Francisco). The transaction is expected to be completed in the third quarter of 2019.
GI Partners’ acquisition comes after significant achievements on the part of Insurity’s three current owners and leadership team, according to Donald Light, Director, Celent (Boston). “Insurity has rationalized and rebranded its product portfolio (after multiple acquisitions); and is moving towards a common technology infrastructure,” Light comments . “It is building on its momentum in the cloud. And it is now committed to expanding its network of SI partners.”
“Insurity represents a highly attractive opportunity for us to invest in a company and leadership team deeply committed to making its clients more successful through innovation and service,” comments Travis Pearson, Managing Director, GI Partners. “We were attracted to the company’s differentiated technology platform, its ability to deliver high levels of customer value, and its track record of operational excellence. This transaction will enable Insurity to continue expanding its solutions platform to offer a new level of experience to clients, as well as develop enhanced solutions to strengthen their businesses.”
Proven Experience Supporting High-Growth Software Companies
Chris Giglio, Insurity’s CEO, emphasized GI Partners’ proven operational and transactional experience to support high-growth software companies. “We look forward to working with GI Partners to continue the innovation of our platform in order to deliver the highest-quality products and services to our customers,” comments Giglio. “We have built a robust business and are a leader in cloud technology whose insurance-focused solutions simplify our clients’ business, and we believe our partnership with GI Partners will take us to the next level.”
Insurity characterizes its offerings as innovative and flexible insurance technology that allows clients to meet their business goals and offer a simplified experience. The company claims the most extensive cloud operations in the property/casualty software market and describes its platform as offering scalable, highly secure and reliable solutions that increase speed to value. The company serves carriers of all sizes and property/casualty lines of business.
“TA, General Atlantic, and Genstar have had an outstanding working partnership with Insurity’s management team during our ownership and that collaboration helped to drive this successful investment,” comments Harry D. Taylor, Managing Director, TA Associates. “We wish the team success as they begin a new partnership with GI Partners to develop their next stage of growth.”
Insurity’s stated goal of leveraging GI Partners’ experience to drive growth raises some interesting questions for Insurity, and for its key competitors as well, according to Celent’s Light. “Will Valen and DataHouse—formerly IEV—be pillars of new growth?” Light comments. “Will there be a push for international expansion from the base that Bridge Specialty and Oceanwide Marine have already established? Who might be on the target list for add-on acquisitions be? And will Insurity be able to differentiate its significant cloud presence in an increasingly crowded cloud world?”
Insurity provides policy administration, claims, billing, and data analytics software to more than 200 insurance clients. The company was founded in 1985 and deploys its policy administration software and full-service solutions to property/casualty markets, including global, national, regional insurance carriers, brokers, large MGAs, and municipalities and government entities.