New York-based MGA and wholesaler Northeast Coverages is looking to further expand its footprint in the Southwest US after sealing a deal to buy Texas firm AUI.
AUI is a surplus lines MGA focused on small to medium-sized commercial risks, including clients in segments such as convenience store programs, liquor liability, garages, contractors and business lines including excess general liability.
Stonybrook Capital acted as exclusive advisor to Northeast Coverages on the transaction and is also the firm’s exclusive reinsurance broker.
AUI, which is located in Austin, Texas, currently writes around $5mn in annual premiums.
Under its new ownership, led by Northeast Coverages CEO Rob Mangi, the firm is expected to expand significantly over the next three years to around $25mn.
Northeast Coverages currently has annual premium volume of $72mn.
Speaking to The Insurer, Mangi said: “The acquisition helps us plant a footprint in Texas and the Southwest area. We’re going to venture into Arizona, California and Nevada. AUI is a great distribution model to start with that.”
The executive added that Northeast Coverages has a pipeline of deals and is looking to further acquisitions to expand its footprint, particularly in the Southwest.
AUI president Linda Reed will continue in that position under the new ownership, with the firm continuing to operate as a standalone entity.
Northeast Coverages focuses on commercial property and liability risks and has relationships with more than 40 insurers, including Lloyd’s, Zurich, Chubb, AIG and AmTrust.
It has a number of programs including habitational, New York contractors, artisan contractors, workers compensation, homeowners, commercial umbrella and commercial auto.