Flexpoint Ford to Acquire GeoVera Insurance Group

Flexpoint Ford has agreed to buy GeoVera Insurance Group Holdings. Financial terms weren’t announced. The sellers were Friedman Fleischer & Lowe and Hellman & Friedman. GeoVera provides specialty residential property insurance. Aon Benfield Securities and SFRi provided financial advice to GeoVera.

PRESS RELEASE

GeoVera Insurance Group Holdings, Ltd. (“GeoVera”), a leading provider of specialty residential property insurance, today announced a definitive agreement to be acquired by affiliates of Flexpoint Ford, LLC, a private equity firm focused on the financial services and healthcare sectors. Terms of the transaction were not disclosed. GeoVera is currently owned by affiliates of Friedman Fleischer & Lowe, LLC (“FFL”) and Hellman & Friedman LLC (“H&F”), two leading private equity firms based in San Francisco. Affiliates of FFL and H&F jointly acquired GeoVera from The St. Paul Travelers Companies, Inc. in 2005.

GeoVera is a leading provider of specialty residential property insurance.  Since its formation in 1995, the company has been underwriting innovative insurance products with a focus on markets that are underserved by other insurance carriers.  GeoVera’s primary products include residential earthquake insurance in the Western United States and specialty homeowners insurance in wind-exposed areas across the Southeast United States and Hawaii.

“We believe this latest development speaks to the strength of our customers, agents, brokers and employees who have each contributed to GeoVera’s continued success,” said Kevin Nish, President and CEO of GeoVera. “We have been fortunate to have two excellent financial partners, FFL and H&F, who enabled GeoVera to come into its own as a well-capitalized, independent company. We are excited to partner with Flexpoint Ford whose expertise will further support the company’s future growth.”

Rajat Duggal, Managing Director of FFL said, “GeoVera represented an attractive opportunity to combine the knowledge and the insurance expertise of each of our firms to create value for our investors and GeoVera’s customers. We believe GeoVera has a strong future as it continues to serve an important segment of the insurance industry.”

“We have had a tremendously successful partnership with the entire GeoVera team and FFL,” added David Tunnell, Managing Director of H&F. “We are proud of the company’s performance and believe it is well positioned for the future.”

The acquisition is expected to close in the summer of 2012, subject to customary regulatory approvals. Following the close of the transaction, GeoVera will continue to operate as an independent company.

Aon Benfield Securities, Inc. and SFRi LLC acted as financial advisors and Simpson Thacher & Bartlett LLP acted as legal counsel to GeoVera in connection with the transaction. Kirkland & Ellis LLP acted as legal advisor to Flexpoint Ford in connection with the transaction.

About GeoVera Insurance Group Holdings, Ltd.
GeoVera is a provider of specialty residential property insurance in markets that are underserved by other insurance carriers due to their exposure to certain perils, such as hurricanes or earthquakes.

GeoVera offers specialty homeowners products primarily on a non-admitted, or excess and surplus line, basis in wind-exposed areas in the Southeast United States and Hawaii, and residential earthquake products primarily on an admitted basis in the Western United States.  GeoVera distributes specialty homeowners’ products through a network of approximately 33 wholesale surplus lines brokers and residential earthquake products through approximately 2,800 independent brokers and agents.  GeoVera and its subsidiaries maintain a Financial Strength Rating of “A” (Excellent) from A.M. Best.   For more information about GeoVera, please visit www.geovera.com.

About Flexpoint Ford, LLC
Flexpoint Ford, LLC is a private equity firm dedicated to the financial services and healthcare sectors.  Flexpoint Ford seeks to build relationships with executives and companies who look for Flexpoint Ford to be a value-added partner.  Flexpoint Ford currently manages approximately $1 billion in committed capital on behalf of its limited partners.  For more information about Flexpoint Ford, please visit www.flexpointford.com.

About FFL
Friedman Fleischer & Lowe, LLC is a San Francisco-based private equity firm with approximately $2.5 billion under management that is focused on investing in U.S. middle-market companies. Formed in 1997, FFL’s strategy is to invest in market-leading companies that generate high returns on invested capital and that have strong, defensible competitive positions, attractive growth prospects and outstanding management. Representative investments include: Tempur-Pedic International, Milestone AV Technologies, Korn/Ferry International, and Discovery Foods. For more information on FFL, visit www.fflpartners.com.

About Hellman & Friedman LLC
Hellman & Friedman LLC is a leading private equity investment firm with offices in San Francisco, New York and London. Since its founding in 1984, H&F has raised and, through its affiliated funds, managed over $25 billion of committed capital. The Firm focuses on investing in superior business franchises and serving as a value-added partner to management in select industries including internet & digital media, software, business & marketing services, financial services, insurance, media, healthcare and energy & industrials. For more information on H&F, visit www.hf.com.

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