Private investment firm Gallatin Point Capital LLC will acquire a majority stake worth $1.25bn in the attorney-in-fact for Trusted Resource Underwriters Exchange (TRUE).
The deal comes at the closing of a new partnership between Gallatin and American Family Insurance Group – the company which established TRUE in 2020.
As part of the collaboration, Gallatin invested the lofty figure into the firm, enabling it to not only provide underwriting capacity in Florida at a crucial time, but also allow it to strategically expand its footprint nationally.
Going forward, TRUE plans to deploy a partnership distribution model while retaining American Family’s support in distribution and client services.
Gallatin Point has curated a seasoned team of insurance industry leaders to spearhead TRUE.
This accomplished contingent includes Fabian Fondriest, former President of American Family Direct and former Chairman and CEO of Homesite Insurance, who assumes the role of TRUE’s Executive Chairman. Joining him is Tony Scavongelli, previously serving as the Head of Partnerships at American Family, stepping into the position of TRUE’s incoming CEO.
Matthew Botein, co-founder and managing partner at Gallatin Point, said, “We are excited to be part of TRUE’s journey as it enters a new phase of growth, and we believe that our investment aligns perfectly with TRUE’s long-term vision and Gallatin Point’s commitment to the insurance sector.
“The regulatory changes in Florida present a unique opportunity for us to contribute to the stability of the market and provide crucial support to homeowners in the region. With TRUE’s leadership team, combined with the strength of American Family’s industry expertise and our capital investment, we are confident in the prospect of TRUE supporting homeowners as a fully national insurance company over time,” he continued.
TRUE’s incoming CEO, Tony Scavongelli, said, “I am honoured to lead TRUE in this exciting phase of growth. The support from Gallatin Point and their investors is a testament to the confidence in our collective vision and capabilities. We are focused on delivering reliable protection to homeowners and expanding our footprint nationally.”
Michael Lorion, President of American Family Direct and Homesite, added, “This partnership reflects American Family’s commitment to providing high quality insurance options for homeowners nationwide. The ongoing relationship between American Family and TRUE will enable us to serve more customers in catastrophe exposed regions.”
The transaction was finalised on December 31, 2023.
Howden Tiger Capital Markets & Advisory acted as the financial advisor, while Kirkland & Ellis LLP provided legal counsel to Gallatin Point. On the other hand, American Family received legal counsel from Willkie Farr and Gallagher LLP during this transaction.
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