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Transverse acquisition by MS&AD completes


The acquisition of hybrid P&C program, fronting and risk transformation company, Transverse Insurance Group, by MS&AD Holdings, through its Mitsui Sumitomo Insurance unit, has been completed, with the pair now targeting growth through this relationship.

transverse-insurance-mitsui-sumitomoThis news had been reported by our sister publication Reinsurance News, with a $400 million price tag said to be the cost to Mitsui Sumitomo.

Sources suggested the rumoured amount was in the right ball-park for Transverse, but this still hasn’t been confirmed publicly.

We then explained that, Mitsui Sumitomo’s attraction to Transverse shows an interest in becoming a connector, in the insurance risk to reinsurance capital value-chain, an increasingly important role in the industry.

The acquisition was then confirmed by the parties involved, with Mitsui Sumitomo Insurance set to buy-out the New Jersey headquartered Transverse from its current owners Virgo Investment Group.

Transverse adopts a hybrid approach to its program P&C business, also providing fronting and risk transformation services.

The company interacts with many sources of reinsurance capital, including alternative markets such as insurance-linked securities (ILS) specialists, and has always pitched itself as an underwriting platform with risk capital access, helping to connect underwriters to capacity and capacity, or investors, to risk.

Transverse has always stated an aim to help facilitate access to risk for insurance-linked securities (ILS) funds and investors, as well as for traditional reinsurance capital sources.

Today, the acquisition has completed, with all necessary approvals now received, Transverse said today.

The deal provides a platform for growth for both parties, with Transverse’s reach extended and MS&AD gaining expanded access to North American markets, a key target for diversifying growth for the group.

“We are proud to finalize this acquisition which will allow Transverse to continue delivering best in class fronting capacity to the program and reinsurance markets,” explained Erik Matson, Co-Founder, CEO, and Chairman of the Board of Transverse. “The global reach of MS&AD and Transverse’s pipeline will propel the business forward in 2023 and beyond.”

President and Co-Founder of Transverse, Dave Paulsson added, “Our team is excited about the future ahead with MS&AD and clearly sees how well the Transverse model fits within the MS&AD family of companies. We look forward to working hand-in-hand with the MS&AD team to bring the best fronting solution to the market. This acquisition is a testament to the team’s hard work building a business that achieved attraction from one of the largest and most prominent insurance carriers in the world.”

Transverse said that in 2022 it has expanded some existing MGA relationships, as well as added new ones.

In addition, the company said that since the acquisition deal was announced, Transverse is experiencing “exceptional demand from high quality MGA partners”.

Also read: MS&AD’s interest in Transverse shows importance of being a connector.

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