Gallatin Point Acquired Trusted Resource Underwriters (“TRU”) and Raised Over $1.25bn of Capital Commitments for Trusted Resource Underwriters Exchange (“TRUE”)

Transaction Overview

Gallatin Point Capital, LLC (“Gallatin”) has acquired a majority stake in attorney-in-fact Trusted Resource Underwriters, LLC (“TRU”) and has raised over $1.25bn of capital commitments for TRU’s affiliated reciprocal exchange, Trusted Resource Underwriters Exchange (“TRUE”)

  • TRUE is a reciprocal insurer established by American Family in 2020 to serve homeowners in storm-prone regions of Florida and other parts of the country
    • American Family will continue to be invested in TRU as a minority owner

Gallatin Point’s investment will allow TRUE to strategically expand its footprint nationally

  • Gallatin / TRU will dedicate significant resources to building out underwriting capabilities, enhancing technology, growing headcount, and developing distribution partnerships to further serve homeowners in storm-prone regions of Florida and other parts of the country

TRUE will be led by Executive Chairman Fabian Fondriest and CEO Anthony Scavongelli; industry veterans with significant leadership experience

  • Fabian Fondriest is the former American Family Direct President, and former Chairman and CEO of Homesite Insurance, and Tony Scavongelli is the former Head of Partnerships at American Family

Gallatin is a financial-services oriented private investment firm founded in 2017 by Matt Botein and Lee Sachs

  • Gallatin’s founders have 6 decades of combined financial services experience, and have both led and built their careers in some of the world’s prominent public and private sector institutions
  • Current insurance related investments include Bowhead, Tower Hill Insurance Exchange, Victor Exchange and Canopius, among others
  • With the commitment to TRUE, Gallatin has ~$5bn of assets under management

Howden Tiger Capital Markets & Advisory Role

HTCMA acted as exclusive financial advisor to Gallatin in its acquisition of TRU; key roles and responsibilities included:

  • Assistance in preparing TRUE’s business plan
  • Due diligence and investor education support
  • A detailed review of financial projections and underwriting performance of TRUE
  • Financial modeling and analysis including a detailed review of alternative return scenarios
  • Significant analytical work and insights on the TRUE portfolio and reinsurance structure
  • Rating agency consultation / oversight including assistance in preparing regulatory and rating agency presentations
  • Offering insights around transaction structuring
  • Providing objective advice and acting as a confidant to Gallatin throughout the process

Holistically engaged Howden Tiger experts on reinsurance, analytics, strategic advisory and rating agency advisory to offer domain expertise

Transaction further solidifies HTCMA as the market leader on all capital markets transactions relating to reciprocal exchanges

  • Including M&A advisory and structuring, formation and capital raising