Ventus was founded in 2016, with the aim of using its proprietary technology to improve automation, efficiency and risk selection
Arch Insurance North America (“Arch”) today announced it has entered into a definitive agreement to acquire Ventus Risk Management (“Ventus”), a technology and analytics-driven managing general underwriter (“MGU”) that specializes in providing coastal commercial property insurance solutions to small and mid-sized enterprises.
Ventus was founded in 2016, with the aim of using its proprietary technology to improve automation, efficiency and risk selection. Ventus has become a trusted MGU for its capacity providers and a respected business partner for its producing brokers. Going forward, integrating Ventus into the Arch platform will enable third-party capital to provide capacity alongside Arch’s product offerings.
“Ventus is an insurtech company that has successfully deployed its offerings to support its underwriters, deliver best-in-class analytics and modeling capabilities and provide a superior customer experience,” said Matt Shulman, CEO of Arch Insurance North America. “When combined with the scale of our E&S property portfolio and breadth of our relationships, we will bring enhanced value to our wholesale distribution partners.”
Ventus’ leaders see this transaction as beneficial to its employees, brokers, customers and carrier partners.
George Reeth, a Ventus co-founder who has announced his retirement with the sale of the company, said, “I’m incredibly proud of what we’ve built at Ventus. By joining the Arch family, our employees will have access to a depth of resources that will allow them to continue to bring robust, creative solutions to the market and develop professionally.”
Co-founder Stuart Mercer, who will become the CEO of Ventus upon the close of the sale, added, “Arch is known for innovative structures that allow third-party capital to access insurance and reinsurance risks behind its strong underwriting expertise. The combined platform will bring broader capabilities and expanded capacity to Arch’s E&S property unit. I’m excited to continue to bring technology driven solutions to the marketplace when our producers and customers need it the most.”
TigerRisk Capital Markets & Advisory acted as exclusive financial advisor to Ventus.
Source: Company Press Release