B.P. Marsh & Partners announced that XPT Group, in which the Group owns a 35% shareholding, has acquired 100% of a New York City based MGA and Lloyd's Coverholder, SVA Underwriting Services.
SVA was founded in August 2013 by its President, Steven Vallejo. SVA specialises in Physical Damage and Cargo cover for the Trucking Insurance sector and will provide geographic expansion for XPT into the Northeast and Midwest.
As part of the acquisition, the Company agreed to provide XPT with further funding of $3,220,000 (c. £2,500,000) by way of newly issued redeemable preference shares.
XPT’s acquisition of SVA is its third since it was established in June 2017. The acquisition of Western Security Surplus Insurance Brokers, Inc. (“WSS”) was announced by the Group in November 2017 and the acquisition of trucking specialist WE Love & Associates, Inc (“WE Love”) in January 2018.
As per XPT’s two previous acquisitions, the purchase of SVA is part of XPT’s plan to develop a wholesale insurance broking and underwriting agency platform across the U.S. Specialty Insurance Sector. This acquisition continues to demonstrate that XPT can take advantage of the consolidation opportunities in the small-to-medium-sized wholesale space in the U.S. while adding operational expertise to organically grow the businesses at high rates.
Dan Topping, B.P. Marsh’s Chief Investment Officer and the Company’s representative at XPT, commented: “We are delighted that XPT has undertaken its third acquisition with the conclusion of the deal with SVA. This acquisition, alongside the previous two, embodies what XPT is doing to develop its synergistic presence in the U.S. specialty insurance market”.
Commenting on the acquisition, XPT’s CEO Tom Ruggieri stated: “Steven Vallejo’s expertise in trucking and his business, SVA, is a perfect complement to our Trucking business increasing our specialisation in Physical Damage and Cargo coverages while supporting Retail Agencies in new geographies. Furthermore, his long-term profitable relationship with the London market strengthens our product portfolio.”
Source: Company Press Release