The acquisition of Gateway includes insurance licenses across 47 states in the US
Buckle completes acquisition of Gateway Insurance. (Credit: Pixabay/Free-Photos.)
Buckle, a digital financial services company, has completed the acquisition of Gateway Insurance from Atlas Financial, after receiving the necessary regulatory and court approvals.
The acquisition of Gateway includes its insurance licenses across 47 US states. Atlas Financial offers auto insurance to the light commercial automobiles market in the US.
The sale of its indirect subsidiary Gateway is part of its Atlas Financial’s strategy that focuses on transitioning business written by Gateway as well as American Country Insurance and American Service Insurance Company to alternative markets, through its subsidiary Anchor Group Management (AGMI).
AGMI is expected to start transition non-paratransit business that meets agreed underwriting criteria as a general agent for Gateway.
The programme will focus on taxi, delivery, limousine and full-time transportation network company drivers.
Buckle re-capitalising Gateway to support Atlas’ AGMI
Gateway is being re-capitalising by Buckle to support Atlas’s AGMI and financing for the re-capitalisation was offered by clients of Hudson Structured Capital Management.
By partnering with Atlas, Buckle will now be able to provide comprehensive auto insurance to the commercial auto market.
The auto insurance is said to offer protection to part-time rideshare and delivery drivers, full-time taxicab and limousine drivers, non-emergency para-transit drivers and transportation network companies (TNCs).
Buckle co-founder Marty Young said: “We believe this deal is a win-win for both TNCs and independent contractor drivers. As this partnership drives down the costs of insurance, we are excited to continue advancing our goal of providing well-deserved support to the mobility ecosystem.
“Every time Buckle sells a policy, its TNC partner’s balance sheet improves as risk is moved from the TNC to the independent contractors.”
Apart from serving as a general agent, Atlas subsidiaries have signed a programme framework agreement to provide other professional services to support Buckle and Gateway.
In addition, Atlas Financial and Buckle are expected to partner in identifying additional opportunities to provide insurance solutions to the gig-economy sector with a focus on transportation network company drivers.