The private equity firm has announced the signing of a definitive agreement to purchase the insurer.
Flexpoint Ford has just announced that it will be acquiring the California insurance company, GeoVera from the affiliates of Friedman Fleischer & Lowe, LLC, and Hellman & Friedman LLC.
The financial details have not yet been disclosed, and the transaction is dependent on the completion of certain typical regulatory approvals and closing conditions, which should be finished by this summer.
The private equity firm of Flexpoint Ford has a special focus on the healthcare and financial services sectors.
On the other hand, GeoVera is a top provider of specialty residential property coverage such as earthquake insurance in the Western United States. It has been underwriting innovative forms of coverage products since it was first created in 1995. It has held a special focus on niche areas of the marketplace that have been left underserved by other insurers. The main products in its offerings include such items as specialty homeowners insurance in Hawaii and the Southeastern United States for those with a high wind exposure.
According to the GeoVera president and CEO, Kevin Nish, “We are excited to partner with Flexpoint Ford. The firm’s deep knowledge and expertise in the property and casualty insurance industry will enable GeoVera to continue to provide protection to homeowners in dislocated and underserved markets.”
Equally, the Flexpoint Ford principal, Chris Ackerman stated that the ability of GeoVera to spot unique opportunities within the marketplace and use a careful risk management and underwriting approach makes it an attractive form of investment.
Moreover, he said that the management team of the company is very solid and has shown itself to be highly capable of leveraging their expertise in best-in-class underwriting for the specialty residential California insurance marketplace to create appealing risk-adjusted returns.
Legal counsel for Flexpoint Ford was from Kirkland & Ellis LLP for this acquisition. GeoVera’s financial advisors were SFRi LLC and Aon Benfield Securities, Inc., with legal counsel from Simpson Thacher & Bartlett LLP.
Once the deal is closed, GeoVera will maintain its operation as an independent company and will keep up its focus on being able to provide stability in the marketplace for its specialty and earthquake insurance policyholders as well as its distribution partners.