The initial phase of the senior secured loan facility agreement includes a multimillion-dollar capital provision that will help bolster surplus and position it for continued growth in the specialty insurance marketplace.
The overall capital commitment of up to $20m is expected to increase over time, subject to the achievement of key milestones agreed upon by both parties.
ASIC said that the capital partnership, facilitated by its exclusive financial advisor Stonybrook, will provide increased financial flexibility, allowing it to expand its underwriting capacity, invest in innovative insurance programs, and further solidify its reputation as an E&S carrier partner.
“This partnership reflects our commitment to maintaining a strong and resilient business model, enabling us to offer even more stable and predictable risk solutions for the specialty market,” said Shevawn Barder, CEO of AM Specialty Insurance Group.
She added: “The longer-term nature of this partnership means that as we continue to achieve our targets, this capital infusion will continue to empower us to better serve the market and expand our product offerings.”
Paul Haney, executive vice president, managing director of insurance banking at Dallas-based Veritex, said the transaction “underscores our deep commitment to the insurance industry, and we look forward to supporting AM Specialty as they continue to grow and innovate”.
ASIC said that its focus remains on delivering specialised insurance solutions with an emphasis on low limit, non-catastrophic risks, ensuring its partners and clients experience less volatile and more predictable results.
E&S lines carrier and accredited reinsurer ASIC was launched by AM Holding Co in 2022. AM Holding Co is also the holding company for AM RE Syndicate and AM Star Claims Co.
AM Best A- rated ASIC writes various specialty lines such as commercial and niche property, casualty, transportation, ocean and inland marine, cyber and miscellaneous specialty lines as a non-admitted carrier.
Program Manager revealed in June that AM Specialty Insurance Group had acquired US MGA Pinpoint Insurance Solutions, as well as launching a London-based underwriting platform led by former Allied World executive Darren Powell.
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