Buckle secures Demotech rating for recapitalised Gateway unit

Demotech has assigned a financial stability rating of A (Exceptional) to auto insurtech Buckle’s licensed carrier Gateway Insurance, which it acquired from Atlas Financial Holdings in June and recapitalised.

Gateway has 47 state insurance licenses. Since the acquisition, Buckle has expanded its insurance coverage to include transportation network companies, traditional taxi, limo, and livery businesses using Lyft, Uber, and other apps.

“A Demotech rating enables us to continue the rapid advance of our digital insurance strategies in new and exciting ways,” said Marty Young, co-founder of Buckle. 

“We purchased, capitalised, seasoned, and relaunched Gateway all in one day. Two months later, we are successfully writing taxi and limo policies in 33 states with our partner, Anchor Group Management Inc. and plan to expand into a total of 40 in the near term.”

Buckle recapitalised Gateway with financing from funds managed by Hudson Structured Capital Management (HSCM).

The insurtech followed up that deal by buying two more indirect subsidiaries of Atlas Financial last month, while also closing a $31mn series A funding round co-led by HSCM and venture capital firm Eos Venture Partners.

Chicago-based commercial auto specialist Atlas Financial was today suspended from the Nasdaq Capital Market and has begun trading on the Pink Open Market, which is operated by OTC Markets Group.

The company was plunged into crisis in early 2019 when it revealed reserving issues that led to a delay in filing statutory reports.

Atlas Financial today said that it has made substantial progress in connection with its strategic transition toward an asset-light MGA business model.