ReAlign Insurance Holdings expects to see premium volume at its carrier subsidiaries grow substantially as it addresses a strong pipeline that will more than double the number of programs in its portfolio next year, The Insurer can reveal.

Timothy McAuliffe - ReAlign Capital Strategies

ReAlign was launched last year with backing from ReAlign Capital Strategies (RCS) and Nebraska-based private equity firm McCarthy Capital to build a vertically aligned, specialty program insurance platform.

RCS was itself formed by Align Financial and RockBrook and has Grant Lippincott, Kieran Sweeney, Andy Swindall, Tim McAuliffe; Doug Goode and Kristina Castle as partners.

ReAlign bought Texas-based admitted carriers National Lloyds and American Summit from Align Financial in July 2020 after the Sweeney-led platform – since bought by Howden’s Dual for $800mn – had acquired them from Hilltop Holdings together with MGA operations it retained.

The two acquired carriers at the time operated in six states with about $140mn in homeowners and manufactured home business.

National Lloyds has since been renamed National Summit Insurance Company after converting from a Texas Lloyds Plan to a capital stock company, while ReAlign has added to its carrier platform with the launch of non-admitted carrier Summit Specialty Insurance Company in October 2020.

Licensing has been expanded to 49 states for the E&S subsidiary.  The admitted companies are able to write in a total of 61 states currently and continue to expand capabilities.

McAuliffe – who is president of ReAlign’s insurance operations – told this publication that by the end of next year the carrier platform should more than double the amount of programs currently partnering with the carriers.

The underwriting teams and claims teams from the carrier acquisitions are now housed in an MGA and third-party administrator (TPA) respectively.

ReAlign already has five programs on its books, with the initial homeowners and manufactured home business as well as four programs from Align Financial, including umbrella/excess, California quake, builders risk and commercial auto deals.

Risk taking program carrier

Although ReAlign and Align Financial are not directly affiliated the close ties between them mean that McAuliffe believes the Dual transaction will provide opportunities to significantly grow the programs portfolio.

Sweeney is now chairman of Dual and former Align president John Johnson leads its North America operations, which have a $450mn book of business, adding to the $630mn managed by Align.

ReAlign also has relationships with third party MGAs and program administrators and is in various stages of due diligence and onboarding with six programs from that source.

Potential programs in the pipeline include a crisis response product recall offering and a security guards general liability deal.

McAuliffe said the ReAlign model is not the same as the variations on a theme deployed by the new class of hybrid fronting carriers that have entered the market.

“They have a place in the market but that’s not our play – we’re a risk taker. As we build out our portfolio we’ll take on more risk,” he commented.

The former Ironshore Programs president said that ReAlign has core relationships with reinsurers, while MGAs it works with also bring their reinsurance relationships to bear.

McAuliffe said that after spending the last year building out licenses and starting the E&S carrier, the focus is now on growing the portfolio.

He added that as well as hiring program managers and underwriters, ReAlign is looking to staff up in areas like data science, modelling and analytics, and will at some point look to add a CUO and CFO as it grows.