Founded in 1981, Topa is the parent company of Topa Insurance and Dorchester Insurance Company, the second-largest P&C carrier in the U.S. Virgin Islands.
Altamont Capital Partners (Altamont) and Topa Insurance Group (Topa) are pleased to announce that Altamont has signed a definitive agreement to acquire Topa from its long-time owner, Topa Equities Ltd., subject to customary closing conditions, including receipt of required regulatory approvals. While Altamont will assume majority control, Topa Equities will maintain a minority equity stake in the business following the closing.
Founded in 1981, Topa is the parent company of Topa Insurance Company, an A- A.M. Best rated property and casualty (P&C) insurance carrier, and Dorchester Insurance Company, the second-largest P&C carrier in the U.S. Virgin Islands. Topa wrote over $130M of gross written premium in 2018 across a combination of its internally-managed wholesale channel and third-party managing general agency partners, all with a common theme of focusing on specialty and niche underwriting. These writings are supported by both Topa’s strong capital base and a panel of highly-rated reinsurance partners. Following consummation of the transaction, the strategy for the business will remain largely the same in terms of a focus on specialty P&C lines, but with added support from Altamont to further build the business through acquiring both new capabilities and areas of expertise.
Commenting on the acquisition, William Anderson, Chairman of Topa Equities, noted, “As proud owners of Topa Insurance for over three decades, our family and Board of Directors were most interested in finding the right long-term partner who will continue to grow the business. We believe that Altamont will be an excellent steward of Topa Insurance, and we look forward to collaborating with them in the years to come.”
Sam Gaynor, Principal at Altamont, said: “We are strong proponents of the specialty P&C insurance business and believe that Topa has built a phenomenal platform in the space. We are looking forward to bringing our resources to bear in partnering with Topa’s management team to further build on its franchise and expand into related lines of coverage.” Keoni Schwartz, Managing Director at Altamont, added: “Topa represents our 7th insurance platform investment at Altamont and, including add-on and pending transactions, 19th overall insurance acquisition at Altamont. Topa will serve as our foundational specialty P&C insurance carrier business in the US and we believe our expertise in the space will drive numerous opportunities for growth over the coming years.”
Terms of the transaction were not disclosed. Topa Equities was represented by Drinker Biddle & Reath LLP and Dowling Hales and Altamont was represented by Sidley Austin LLP and RBC Capital Markets.
Source: Company Press Release