Financial services-focused private equity firm Preservation Capital Partners (“Preservation Capital”), today announces the successful completion of its strategic investment in US construction-focused MGA Cove Programs (“Cove”) after receiving all necessary regulatory approvals.
Together with insurTech-driven cyber and specialty lines MGA Ascent Underwriting (“Ascent”), which Preservation Capital acquired an interest in last year, the deal has created one of the largest independently-owned specialty lines MGAs, managing more than $200 million GWP.
Ascent and Cove will continue to operate under their respective market-leading brands. Each is a pioneer in speciality product development and distribution within their own markets, supported by best-in-class underwriting and claims teams. The businesses and senior management will however combine to drive the continued creation of value for brokers, markets, and clients through shared expertise, product innovation and technology.
David Umbers, executive chairman of the combined group, said: “We are excited to announce the completion of this transaction. Its swift conclusion now allows us to focus on seizing the tremendous opportunities to scale the combined business, and create additional value for our customers, brokers and capacity providers.”
Kevin Hastings, chief executive of the combined group, said: “Uniting at a corporate level allows us to realise the many synergies between our two entirely complementary businesses. Our combined resources and innovative class-leading expertise will help propel significant growth for the business.”
Peter Rigby / Richard Adams
+44 (0)20 7562 4444
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About Ascent Underwriting
Ascent is a specialist cyber-focused managing general agent underwriting on behalf of a number of Lloyd’s syndicates. It provides innovative insurance solutions face-to-face, and via a proprietary electronic underwriting platform. Ascent believes that all insurance products should be complemented by value-added solutions, and therefore partners with other professionals, including risk assessors, forensic experts, and proactive claims management companies, to assist clients in making informed choices and ensuring the claims process is smooth and efficient.
Cove, formed in 2011, is a provider of specialty insurance products. It comprises Cove Program Underwriting Limited, a London-based managing general agent and approved Lloyd’s coverholder with underwriting authority on all its programs, backed by highly rated insurers. Cove Programs Insurance Services LLC, a California-based surplus lines intermediary, is licensed in each state in which it operates. Cove also owns Bay Risk Services Limited, a Lloyd’s Broker specialised in placing and managing delegated authorities for profitable coverholders.
About Preservation Capital Partners
Preservation Capital Partners is a mid-market private equity firm specialising in the financial services sector. It focuses on partnering with market-leading companies with proven and resilient business models that have demonstrated strong growth. Preservation Capital is backed by a number of family offices and institutional investors.
Preservation Capital Partners was advised by Proskauer Rose, Alvarez & Marsal and John Burns Consulting. Ascent was advised by Boodle Hatfield. Cove was advised by Aon Securities, RPC, PKF Littlejohn and Deloitte.