Gallatin Point Capital has teamed up with American Family Insurance Group to acquire a majority stake in the attorney-in-fact for TRUE.
Set up in 2020 by American Family Insurance Group, TRUE is a reciprocal insurer that caters to homeowners in storm-prone US regions including Florida.
Go deeper with GlobalData
As part of the partnership, Gallatin Point will invest more than $1.25bn in TRUE to facilitate its expansion across the US.
TRUE will leverage a partnership distribution model through new as well as current partnerships.
American Family will continue to hold a minority ownership in TRUE, while supporting it by providing essential distribution and client services including claims handling and customer support.
To spearhead TRUE’s growth, Gallatin Point has appointed former American Family Direct president and Homesite Insurance CEO Fabian Fondriest as TRUE’s executive chairman.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataTony Scavongelli, who previously served as American Family Partnerships head, will be the CEO of TRUE.
The deal, which completed on 31 December 2023, is expected to allow a smooth transition for TRUE’s clients and staff.
Howden Tiger Capital Markets & Advisory and Kirkland & Ellis provided financial and legal advisory services to Gallatin Point, respectively, while Willkie Farr and Gallagher served as American Family’s legal counsel.
Gallatin Point co-founder and managing partner Matthew Botein 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.”
