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IDIG acquires ownership stake in Risk Transfer

Dowling Capital Partners’ and insurance provider The Capacity Group’s joint venture, Insurance Distribution Investing Group, has acquired a 50 percent ownership stake in Risk Transfer, an insurance program manager specializing in difficult-to-place risks. No financial terms were disclosed.

PRESS RELEASE

ORLANDO, Fla., Oct. 24, 2014 /PRNewswire/ — Insurance Distribution Investing Group, LLC (IDIG), a joint venture formed in June of this year and backed by the insurance industry executives of The Capacity Group and by Dowling Capital Partners, announced the close of their previously announced transaction by acquiring a 50% ownership stake in Risk Transfer and affiliated companies of Risk Transfer.

Risk Transfer, an innovative insurance program manager specializing in difficult-to-place risks, Libertate, its small traditional commercial and personal lines provider, as well as RiskAware™ LLC, its loss control and claim advocacy division are all included in the transaction.

RiskMD® LLC, Risk Transfer’s patent-pending technology company is also included in the transaction with a future option for IDIG to purchase a greater equity stake.

IDIG was founded to bring together industry experts and professionals in all insurance disciplines and to support owners and managers with a focus on innovation, products, and relationships. RiskMD technology paired with the industry expertise of IDIG will bring unprecedented capabilities and efficiencies to the Dowling/Capacity universe. “We’re excited to achieve this type of partnership and begin to see it flourish,” IDIG’s Managing Partner, Gary S. Maier, stated. “Risk Transfer’s standing in their chosen industry is quite impressive.

Their level of commitment and innovation to their customers and trading partners is a major differentiator. IDIG will further enhance and expand on their model by improving market and product positioning, and offering ways to further differentiate on expertise and customer innovation.”

Paul Hughes, CEO of Risk Transfer, commented, “On so many levels, partnering with IDIG is a home run. They believe as we do that the PEO model is an important part of the future of insurance distribution. Besides the traditional market relationships we can leverage with our partners from Capacity and Dowling Capital, they are anything from traditional in their focus on helping us to better the PEO model to make it even more impactful for American business. Our “Money Ball” approach to underwriting insurance allows us to value an insurance transaction utilizing the most credible data available in the most efficient manner possible. The speed at which we have credible, available information will help the new Risk Transfer to make the smartest decisions faster.

This partnership will allow more time towards the creation of new solutions for Risk Transfer’s clients. Carl Gerson, COO of The Capacity Group, said, “We’re in a unique position to expand on our already growing relationship with Dowling Capital. I’m thrilled Paul Hughes and his talented team are joining us and we’re excited about the combination of Risk Transfer’s innovation with the exceptional trading partners Capacity can bring to this market segment. There will be more exciting news that we plan to share in the coming months too.”

About Risk Transfer
Started in May of 2000 as a retail brokerage, Risk Transfer has always focused on risks that required a more sophisticated understanding of the client’s business, and broader insurance solutions and cost containment structures. Risk Transfer Programs (fka Lighthouse Programs) was formed in 2003 to be the underwriting company for the group. Risk Transfer’s brokerage/consultancy still remain as the flagship operating companies of the group. Risk Aware (outsourced underwriting platforms/cost containment programs) provides comprehensive risk management analytics. Risk Aware was formed in 2007 to focus on customer advocacy and cost containment for our clients. Lastly, RiskMD was formed in 2008 to provide the “art and science” of risk management. The scientific or process portion of RiskMD currently is patent-pending by the being reviewed by the US Patent Office and should receive a final utilization application. RiskMD is the first platform to introduce data vault technology to the insurance industry and is poised to provide services to a myriad of players within the insurance space. http://risktransfer.com/

About Capacity Group
The Capacity Group of Companies offers an expansive range of standard and customized insurance and financial products, while providing superior customer service for all types of businesses, industries, and individuals. The Capacity Group has a diversified insurance distribution and product platform in Retail, Wholesale and Specialty Program business, as well as all types of personal, commercial, specialty and benefits lines of business. The Capacity Group is located in Mahwah, NJ and has 14 offices nationwide. The Capacity Group has grown to become one of the 100 largest insurance brokerage firms in the U.S. It is currently ranked number 43 by Business Insurance magazine, and is among the Top 25 privately held brokerage firms in the U.S. by Insurance Journal magazine. http://www.capcoverage.com/images/top100HR.pdf

About Dowling Capital Partners
Dowling Capital Partners (DCP) is a private equity firm that invests exclusively in the insurance industry. Investments are focused on the three main sectors of the industry – underwriting, distribution and technology/services. DCP was formed in 2011 by insurance industry veterans with senior level industry experience, including insurance-related private equity investment management, investment banking, industry research and operational and board-level roles within major insurance, reinsurance and brokerage companies. DCP’s investors include highly regarded insurance industry organizations and professionals. DCP provides its portfolio companies and co-investors with industry expertise, broad relationships and operating experience. For additional information, please visit www.dowlingcapitalpartners.com.