Velocity acquires majority stake in builder’s risk MGA
Catastrophic risk insurance underwriter Velocity Holding has acquired its first managing general agent (MGA) to expand its presence in the US.
Velocity HoldCo, the holding company for Velocity Risk Underwriters, Velocity Specialty Insurance Company, and Velocity Claims has acquired a majority stake in Insight Risk Technologies, a loss prevention and technology-driven risk transfer solution provider for builder's risk market, operating on both an admitted and non-admitted basis.
The acquisition is part of the company's strategic expansion and represents its second acquisition and first MGA deal.
Praveen Reddy, chief operating officer and head of business development at Velocity, said: “This marks another exciting milestone in fortifying our position as a leader in the E&S property insurance industry by harnessing the incredible talent and innovative capabilities of the Insight Risk team. We believe that Insight Risk is poised for remarkable growth, and Velocity is thrilled to be a part of their journey. The completion of this acquisition of Insight Risk will infuse growth capital, provide additional capacity for Insight Risk, and provide Velocity with a new diversifying line of business for its expanding specialty insurance platform.”
Chad Hollingsworth, president and co-founder of Insight Risk, said: “Insight Risk was founded with the mission to leverage new technologies and datasets to reduce losses and create a better risk management experience for all of our stakeholders. The rapid adoption of our model over the past twelve months proves that there is tremendous opportunity and appetite for our programs. Partnering with Velocity will supercharge our growth and allow us to scale faster to meet demand for our unique approach to underwriting and loss control.”
John Dempsey, CEO and co-founder of Insight Risk, said: “We are thrilled to join the Velocity team and look forward to the many benefits Velocity’s platform will provide as we scale Insight Risk’s Builder’s Risk offerings across the US. The era of technology-enabled risk management has arrived and is here to stay, creating win-win opportunities for carriers, brokers, and most importantly, the clients we all serve.”
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