Core Specialty has agreed to make a minority investment in Gramercy Risk Holdings, a New York-based insurance management and risk-financing platform.
The undisclosed investment aims to support growth initiatives within Gramercy and its subsidiaries, enhancing their specialty, property and casualty business offerings.
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Gramercy manages programmes on its own balance sheet and extends professional services to capital providers, third-party insurance companies, as well as managing general agents and brokers.
The collaboration between Core Specialty and Gramercy will also see Core Specialty’s insurance subsidiaries become the exclusive policy-issuing carriers for Gramercy’s products.
As part of the agreement, Core Specialty will introduce two new members to Gramercy’s board of directors.
Chris Watson, who has been a part of Core Specialty’s board since its recapitalisation in November 2020, and Scott Snyder, president of fronted programmes at Core Specialty, will join Gramercy’s board.
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By GlobalDataThe deal is expected to complete in the second quarter of 2024, subject to regulatory clearances.
Core Specialty founder, president and CEO Jeff Consolino said: “We are delighted to announce our investment in Gramercy and to become the exclusive capacity provider for Gramercy’s insurance products.
“Bill Fishlinger, Gramercy’s chairman and CEO, has a strong track record of successful development and ongoing management of insurance companies, consistently producing combined ratios that outperformed the property and casualty industry for over 30 years.”
Gramercy CEO Matt Fishlinger said: “Our partnership with Core enhances Gramercy’s ability to deliver best-in-class specialty programmes to our brokers and insureds, positioning us well for future growth.”
This investment follows Core Specialty’s recent foray into the mortgage reinsurance business through a partnership with Enact in August 2023.
Core Specialty will offer excess of loss reinsurance on selected mortgages backed by Freddie Mac and Fannie Mae.
