KKR has agreed to acquire a majority interest in Integrated Specialty Coverages, which uses technology to connect a growing network of insurance markets and retail/wholesale distribution channels. Goldman Sachs is advising KKR, while Morgan Stanley & Co is advising ICS.
NEW YORK & CARLSBAD, CA – March 4, 2021 – Integrated Specialty Coverages (“ISC” or the “Company”), a leading, multi-line insurance distributor that builds end-to-end insurance products utilizing advanced artificial intelligence (AI) engineering and data analytics, today announced that leading global investment firm KKR will be acquiring a majority interest in the Company. Sightway Capital, a Two Sigma private equity business, is selling its majority position and will continue to hold a stake in the Company as a minority shareholder. Financial terms of the transaction were not disclosed.
Founded in 2017 by insurance veteran Matt Grossberg, ISC connects a growing network of insurance markets and retail/wholesale distribution channels through sophisticated artificial intelligence, proprietary technology and data analytics to deliver customized insurance programs for agents, brokers, carriers and reinsurers. In 2018, the Company partnered with Sightway Capital to further scale its technology platform and expand its suite of end-to-end insurance products. ISC currently writes approximately $300 million of specialty premium annually across a growing number of industries, including Property, Construction, Transportation, and Hospitality (Bars & Taverns).
Over the past four years, the Company has grown its platform through strategic acquisitions and partnerships with over 5,000 insurance agencies and brokers. With plans to leverage KKR’s deep experience in the insurance sector as well as its global network and resources, ISC will continue to strengthen its presence within its core lines of business while expanding its platform to new markets. Mr. Grossberg will continue in his role as Chief Executive Officer and the ISC management team will also remain in place.
“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,” commented Mr. Grossberg. “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.”
“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,” said Chris Harrington, KKR Partner who leads KKR’s Financial Services investment team.
“Just a few years ago, we partnered with Matt and the ISC team with the goal of building a market-leading insurtech business and we are incredibly proud of the success the Company has achieved in a short period of time,” said Michael Gross, Co-Head of Investments at Sightway Capital. “ISC is an investment consistent with our defined strategy of identifying promising businesses that have the potential to succeed through the creation and implementation of differentiated technology and data insights. ISC is well-positioned in the evolving insurtech industry. We continue to believe in the business and its growth prospects and look forward to the Company’s future success.”
KKR is making its investment in ISC through its Americas XII Fund. The investment adds to KKR’s experience of investing in leading companies in the property and casualty insurance market, including investments in USI, Alliant Insurance Services, Sedgwick and PURE.
Goldman Sachs is acting as financial advisor to KKR, with Kirkland & Ellis acting as legal advisor. Morgan Stanley & Co. LLC is acting as financial advisor to ISC, with Lowenstein Sandler acting as legal advisor on the transaction.
About Integrated Specialty Coverages
Integrated Specialty Coverages (ISC) is a leading, multi-line insurance distributor dedicated to underwriting excellence, client service, and customer experience. ISC has built an end-to-end insurance platform by connecting a broad network of insurance markets and distribution channels with proprietary data analytics capabilities. The firm uses sophisticated technology and analytics to revolutionize how complex programs are underwritten and operated. They are joined by experienced professionals from all spheres of the insurance ecosystem. ISC’s strategy is focused on a combination of strategic M&A, data-driven decision making, as well as an innovative means of delivery. ISC provides its partners with high-quality service, competitive commission, and creative product delivery options to help expand their footprint in any desired line or class of business. Please visit: https://iscmga.com/
KKR is a leading global investment firm that offers alternative asset management and capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life and reinsurance products under the management of The Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com and on Twitter @KKR_Co.
About Sightway Capital
Sightway Capital, a Two Sigma private equity business, focuses on supporting companies alongside experienced operators. Sightway looks for opportunities in data rich industries, such as financial services and real assets, and seeks to leverage Two Sigma’s strengths in data science and technology to help our portfolio companies, enhance our investment processes, and develop data-driven investment opportunities. For more information, please visit www.sightwaycapital.com.