Cornell Capital, HSCM to acquire majority stake in insurance provider Vault

Cornell Capital and Hudson Structured Capital Management (HSCM) have agreed to acquire majority stake in Vault Holdings, a provider of personal insurance to high-net-worth clients in the US, from Allied World Assurance.

While Cornell Capital is a private equity firm, Hudson Structured Capital Management does its re/insurance business as HSCM Bermuda, which is an asset manager focused on alternative investments.

The financial terms of the deal were not disclosed.

Scott Carmilani – Co-Founder of Vault and former Chairman and CEO of Allied World Assurance said: “The market demand for premium personal insurance is growing rapidly.

“There are more than 12 million U.S. households in our target market, up from 6.8 million in 2009, and nearly 80% of them do not currently utilize the services of a high-net-worth insurance specialist, presenting Vault with a large addressable market. With the investment by Cornell Capital and HSCM, we see significant growth potential for Vault in the underserved high-net-worth insurance market.”

Established in 2017, Vault is said to give a modern insurance experience that brings together an advanced technology platform and customized concierge service designed to address the requirements of affluent clients.

Cornell Capital, HSCM to acquire majority stake in high-net-worth insurance provider Vault.

Vault is said to operate under a hybrid business model, by serving as a reciprocal insurance exchange, managing general agent, and also as an excess-surplus insurance provider.

The company provides customizable services and policies for insuring high-value homes and cars, and also collections of art, jewelry, antiques, memorabilia, and wine.

Vault’s insurance products are distributed exclusively via a national network of appointed agents and brokers.

Henry Cornell – Founder and Senior Partner of Cornell Capital said: “In less than three years, Vault has progressed from a dynamic startup to a fast-growing disruptor.

“Our team brings significant experience partnering with and growing leading insurance companies, and we look forward to working closely with Scott, Charles, and the Vault team to execute on our shared vision for continued growth.

“Moving forward, Vault has the potential to become an even stronger, more nimble competitor, capable of reshaping the sector, attracting and retaining top talent, and achieving market leadership in high-net-worth personal insurance.”