KKR to acquire majority stake in Integrated Specialty Coverages
Global investment firm KKR has agreed to acquire a majority stake in Integrated Specialty Coverages (ISC), a multi-line insurance distributor that builds end-to-end insurance products using artificial intelligence (AI) engineering and data analytics.
Sightway Capital, a private equity business owned by Two Sigma, is divesting its majority stake in the US-based insurtech company. However, Sightway Capital will hold a minority stake in Integrated Specialty Coverages.
The financial terms of the deal were not disclosed.
Integrated Specialty Coverages was established in 2017 by Matt Grossberg, an insurance veteran.
The insurance distributor is said to connect a network of insurance markets and retail/wholesale distribution channels by using artificial intelligence, its proprietary technology and data analytics to provide tailored insurance programs for agents, carriers, brokers, and reinsurers.
Chris Harrington – KKR Partner said: “ISC stands out within the specialty insurance market because of its innovative technology platform, thoughtful product design and deep relationships across the value chain.
“We are thrilled to be working with Matt and ISC’s talented team as they continue to build on their mission of delivering technology-enabled insurance solutions to more customers and new end markets.”
In 2018, Integrated Specialty Coverages joined forces with Sightway Capital to further scale its technology platform and grow its suite of end-to-end insurance products.
Presently, Integrated Specialty Coverages writes nearly $300 million of specialty premium annually across various industries such as property, construction, hospitality, and transportation.
Matt Grossberg said: “The insurance model is expanding and evolving. Speed, flexibility and technology are rapidly becoming ‘must-have’ capabilities.
“ISC combines those attributes with the tried-and-true traditional areas of focus such as personal relationships, solid underwriting and loyal dedication to our partners. Our team is glad to be a contributor to the ongoing technology evolution in the insurance industry and is proud of the success our platform and our industry partners have experienced.
“We are thankful for the close partnership with Sightway Capital and look forward to our next phase of growth with KKR as we continue to build great insurance products and bring our technology to bear across new verticals.”