(Image credit: Mika Matin/Unsplash.)
Acrisure, a Grand Rapids, Mich.-based company specializing in intelligence-driven financial services, has announced its acquisition of Appalachian Underwriters (Oak Ridge, Tenn.), a national MGA and third-party administrator. In a statement about the acquisition Acrisure stressed the technology assets that Appalachian Underwriters brings to the firm. Acrisure declined to disclose the terms of the transaction were not disclosed. The company says it expects to make further related and complementary announcements during 2022.
Appalachian annually places more than $400 million gross written premium into the insurance market through a business model that includes both an MGA and wholesale distribution. Core business divisions of Appalachian include Workers’ Compensation, Commercial Specialty, Personal Lines and Transactional Wholesale. Among the largest independent MGAs, Appalachian’s custom programs and underwriting facilities are distributed on a national basis and are supported by domestic carriers and Lloyd’s of London.
“Appalachian presents a unique partnership opportunity,” comments Greg Williams, Co-Founder, CEO and President, Acrisure. “With very few entities of its kind in existence, we’re excited about this deal and the acceleration it will provide both Acrisure and Appalachian. Further, this new Partnership will expand our technology platforms as we integrate data and systems with our artificial intelligence strategy. Of particular interest is the ability to access Appalachian’s deep and broad dataset including claims information as a tool to further model, underwrite and package Acrisure’s risk premium for distribution across multiple markets.”
Combining Technology and Talent
Acrisure says Appalachian’s large distribution network will complement its existing distribution model to further leverage and create opportunities. With investments in AI, machine learning and data analytics, Acrisure says it is combining technology and the highest level of technology talent to transform the insurance value chain. The deal to acquire Appalachian follows Acrisure’s recent acquisition of the MGA and related operations of SUNZ Insurance.
“The Appalachian family of companies, now joined with Acrisure, creates a dynamic and transformative force in the market,” comments Bob Arowood, President of Appalachian Underwriters. “Acrisure’s platform is the most robust and innovative in the financial services industry and we’ve admired how they’ve built such a successful organization with a strong and differentiated culture. I couldn’t be more excited about this opportunity.”