Preservation Capital invests in US MGA Cove Programs post Ascent deal
Mid-market private equity firm Preservation Capital Partners, which last year acquired Ascent Underwriting, has made another strategic investment in a US-based specialist managing general agent.
The PE firm has invested in US construction-focused MGA Cove Programs. Together the businesses will manage in excess of $200 million GWP, the company said.
David Umbers, who is to become executive chairman of the combined group, said: “Joining with Cove will give us important critical mass. Like Ascent, Cove Programs are innovators; by driving forward together we will have greater breadth and resources to serve our brokers and clients. It will also extend each companies’ distribution, both inwards and outwards. We are excited by the combination and growth opportunity that lies ahead of us, and together will focus on continued organic growth with the objective of significantly scaling the business.”
Kevin Hastings, who will become chief executive of the combined group, said: “We are uniting at a corporate level, however there will be no change in who does what from day to day. Instead we will realise synergies between our two entirely complementary businesses. Together we have no business overlap; only opportunity. For example, Cove’s clients include over 60 top US homebuilders and 70 top commercial general contractors. Ascent’s cyber insurance products will be extremely valuable to them.”
Jatender Aujla, a partner of Preservation Capital, said: “Ascent has made significant progress since our initial investment just over a year ago, particularly in the areas of product development and distribution. Cove is an extremely impressive business with a focus on highly specialised niches generating superior underwriting and insurance placement results.
"The companies have highly respected brands, the loyalty of brokers and customers, and incredibly experienced management teams supported by industry-leading specialists. Together they comprise a very strong business possessing all the ingredients for controlled, successful growth focused on generating superior underwriting results while serving the broad needs of their brokers and clients.”
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