Ambac has continued its three-pronged strategy as it builds out its fronting carrier and MGU platform with a strategic partnership that sees it take a minority stake in tech-driven specialty commercial insurance and surety underwriter Embrace Partners.

Ambac

The MGU is led by industry veteran and former AIG, The St Paul Companies and Travelers executive David Cayemitte, who will remain the majority owner. The Embrace platform also includes a diversity, equity and inclusion consulting firm.

“David Cayemitte is both a visionary and a tactician, having launched The Cayemitte Group, an insurance brokerage MBE [minority business enterprise], in 2005,” Ambac CEO Claude LeBlanc said.

“He is a well-respected thought leader, dedicated partner and active participant in the MBE marketplace. We are excited about this strategic partnership and investment in Embrace and proud to support this mission-driven company.”

The MGU will offer educational services through the Minority Business Development Institute, which has trained contractors that have been used by companies and government agencies that require diverse spend for development projects, including the Dormitory Authority of the State of New York (DASNY).

Michael Clay, senior director of the opportunity programs group and co-leader of procurement for DASNY, said Cayemitte and his team help underserved populations including minority and women-owned businesses and disabled veteran-owned businesses participate in the construction industry.

“They provide the training, capital access and bonding needed in order to bid on projects as a primary contractor, which is a game-changer. Partnering with Ambac will enable Embrace to offer these crucial programs to contractors across the nation,” he said.

Cayemitte added: “Diversity has become a top priority for leading organisations both in the public and private sectors. Insurance procurement and DE&I-focused programs are formidable mediums for firms to advance their ESG commitments.

“The Embrace platform offers the opportunity to spend responsibly in exchange for excellent products and services.”

As previously reported, Ambac is executing its underwriting and distribution strategy across three pillars: participatory fronting platform Everspan, the build-out of an MGA/MGU platform and making minority investments in businesses that are synergistic to pillars one and two.

Earlier this year it completed the acquisition of three admitted carriers as it continued to build out its AM Best A- rated Everspan participatory fronting business, which has been actively onboarding programs since its launch last year.

It has also been actively pursuing MGA acquisitions after initially buying an 80 percent interest in Xchange Benefits and Xchange Affinity Underwriting Agency in late 2020.

And in June this year Ambac partnered with former GuideOne executive Penny Parisoff to create a new human services-focused MGA offering professional and general liability insurance.