KKR to Acquire Integrated Specialty Coverages

Sightway Capital is selling its majority position in the multiline, tech-focused distributor, and will continue to hold a stake in the company as a minority shareholder.

(Image source: ISC website.)

Integrated Specialty Coverages (New York) a multi-line insurance distributor with the declared mission of building end-to-end insurance products utilizing advanced artificial intelligence (AI) engineering and data analytics, has announced that leading global investment firm KKR (New York) will acquire a majority interest in the Company. Sightway Capital (New York), a Two Sigma private equity business, is selling its majority position and will continue to hold a stake in the company as a minority shareholder. The parties declined to disclose the financial terms of the transaction.

Matt Grossberg, Founder and CEO,
Integrated Specialty Coverages.

Founded in 2017 by insurance veteran Matt Grossberg, the company’s current CEO, ISC describes its role in the market as connecting a growing network of insurance markets and retail/wholesale distribution channels through sophisticated artificial intelligence, proprietary technology and data analytics to deliver customized insurance programs for agents, brokers, carriers and reinsurers. In 2018, the Company partnered with Sightway Capital to further scale its technology platform and expand its suite of end-to-end insurance products. ISC currently writes approximately $300 million of specialty premium annually across a growing number of industries, including Property, Construction, Transportation, and Hospitality (Bars & Taverns).

ISC reports that, over the past four years, it has grown its platform through strategic acquisitions and partnerships with over 5,000 insurance agencies and brokers. With plans to leverage KKR’s experience in the insurance sector as well as its global network and resources, ISC says it will continue to strengthen its presence within its core lines of business while expanding its platform to new markets. Grossberg will continue as CEO and the ISC management team will also remain in place.

Speed, Flexibility and Technology

Speed, flexibility and technology are rapidly becoming ‘must-have’ capabilities in a rapidly evolving insurance model, according to Grossberg. “ISC combines those attributes with the tried-and-true traditional areas of focus such as personal relationships, solid underwriting and loyal dedication to our partners,” he says. “Our team is glad to be a contributor to the ongoing technology evolution in the insurance industry and is proud of the success our platform and our industry partners have experienced.”

Chris Harrington, Partner, Financial Services, KKR.

“We are thankful for the close partnership with Sightway Capital and look forward to our next phase of growth with KKR as we continue to build great insurance products and bring our technology to bear across new verticals,” Grossberg adds.

ISC stands out within the specialty insurance market because of its innovative technology platform, thoughtful product design and deep relationships across the value chain, opines Chris Harrington, the KKR Partner who leads the firms Financial Services investment team. “We are thrilled to be working with Matt and ISC’s talented team as they continue to build on their mission of delivering technology-enabled insurance solutions to more customers and new end markets,” he comments.

KKR reports that it is making its investment in ISC through its Americas XII Fund. The investment adds to KKR’s experience of investing in leading companies in the property and casualty insurance market, including investments in USI, Alliant Insurance Services, Sedgwick and PURE.

Potential for Success through Differentiated Technology and Data Insights

Michael Gross, Co-Head of Investments, Sightway Capital.

“Just a few years ago, we partnered with Matt and the ISC team with the goal of building a market-leading InsurTech business and we are incredibly proud of the success the Company has achieved in a short period of time,” comments Michael Gross, Co-Head of Investments, Sightway Capital. “ISC is an investment consistent with our defined strategy of identifying promising businesses that have the potential to succeed through the creation and implementation of differentiated technology and data insights. ISC is well-positioned in the evolving insurtech industry. We continue to believe in the business and its growth prospects and look forward to the Company’s future success.”

Goldman Sachs is acting as financial advisor to KKR, with Kirkland & Ellis acting as legal advisor. Morgan Stanley & Co. LLC is acting as financial advisor to ISC, with Lowenstein Sandler acting as legal advisor on the transaction.

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Anthony R. O’Donnell // Anthony O'Donnell is Executive Editor of Insurance Innovation Reporter. For nearly two decades, he has been an observer and commentator on the use of information technology in the insurance industry, following industry trends and writing about the use of IT across all sectors of the insurance industry. He can be reached at AnthODonnell@IIReporter.com or (503) 936-2803.

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