Expansive PE-backed consolidator platform Constellation Affiliated Partners has agreed a deal to buy Florida-based MGU and program administrator Coastal Insurance Underwriters (CIU), The Insurer can reveal.
According to sources the transaction is working its way through the regulatory process and is expected to close by the end of the year.
Constellation is the Bill Goldstein-led vehicle backed by RedBird Capital Partners that is actively acquiring MGUs, program administrators and wholesalers.
Ponte Vedra Beach-headquartered CIU is a Lloyd’s coverholder that was launched by Chuck Bushong in 2007 initially to provide exclusive community association insurance products distributed online to a select group of retail agents throughout the US.
It has since grown to become one of the largest MGUs in the US focused on the segment, with over 8,000 homeowner and condo associations currently insured.
Financials of CIU are not known but sources said it writes premiums north of $100mn.
It offers a range of programs across commercial and personal lines including condominium association package in several states, DIC wrap, large limit commercial umbrella, specialty homeowners, personal umbrella, products tailored to golf and country clubs and monoline D&O.
States its products are available in include Alabama, California, Florida, Georgia, Tennessee and Texas.
It provides agents with a web-based single entry platform automation as well as its professional underwriting team.
Bushong is a former Nationwide and Brown & Brown executive.
$1bn+ premium volume on platform
CIU is the latest acquisition for Constellation and follows its deal to buy Trinity Transportation Services and Global Claims Services last month.
At the time Goldstein said that transaction offered the opportunity to partner with a leading MGA in the towing and recovery insurance marketplace.
Constellation completed its biggest deal to date this summer, when it bought into Atlanta-based MGA and wholesale broking platform Allstar Financial.
It is thought that factoring in all its 2020 acquisitions the Constellation platform now represents in excess of $1bn of premium volume and $50mn of Ebitda.
The platform was officially launched earlier this year by CEO Goldstein (pictured above) and is understood to have already concluded several transactions as it targets specialty MGAs, program administrators and wholesalers.
It is thought the start-up will not look to fully integrate the companies it acquires but has been building an integrated common technology platform that MGAs, program administrators and wholesalers will operate from.