Insurity, backed by GA, TA and Genstar, goes on the block

Insurity, a provider of insurance software that’s backed by a trio of PE firms, is up for sale, five sources said.

Lazard is advising on the process, the people said.

Founded in 1971, Insurity is the Hartford, Connecticut, provider of policy administration software for the P&C insurance industry. Customers include CAT Financial, Chubb, Nationwide and Arch. Insurity acquired Valen Analytics in January 2017, PitchBook said.

Insurity is expected to sell for $1.2 billion to $1.5 billion, two of the sources said.

PE helped launch Insurity. In 2011, Genstar Capital bought the insurance software business of LexisNexis and called the unit Insurity. Jeff Glazer, Insurity’s founder, served as CEO until 2018, his LinkedIn profile said. Chris Giglio, ex-CEO of Aderant, is currently chief executive of Insurity.

Genstar sold part of its stake in Insurity to TA Associates in 2014. Two years later, in 2016, General Atlantic came on board when it invested.

Private equity has long been an investor in insurers. Insurtech, which refers to the use of technology to transform the insurance industry, has generated lots of buzz.

Most companies are still too early for PE. Instead, venture capital and growth firms have provided the majority of funding for insurtech companies.

Venture funding for insurance and insurtech startups raised more than $2.5 billion in 2018, according to Crunchbase. The biggest insurtech deal in 2018 was Cambridge Mobile Telematics, which secured a $500 million investment from SoftBank, according to Accenture.

Genstar and General Atlantic declined comment. Executives for Insurity, Lazard and TA Associates could not be reached for comment.

Milana Vinn contributed to this report

Action Item: Read Accenture’s report on the Top 10 Insurtech Deals of 2018 here.