Benchmark Holding Company, a subsidiary of newly-floated Trean Insurance Group, has announced the acquisition of 7710 Insurance Company, a workers compensation program manager run by former Carvill and CNA Re executive Bill Adamson.
Summerton, South Carolina-based 7710 was incorporated in 2014 and underwrites workers comp for the fire and emergency services industry.
It is licensed and admitted in 8 states with the ability to write business in a total of 43 states through an arrangement with AM Best A rated Benchmark Insurance Company acting as issuing carrier.
7710 had $20.5mn in gross written premium in 2019.
The deal includes associated program manager 7710 Service Company and agency Creekwood Insurance Agency.
“We believe that being part of Trean uniquely positions 7710 to be the nationwide ‘go to’ workers compensation insurance partner for the emergency services industry,” said Adamson, CEO of 7710 Insurance Company.
Adamson has been with 7710 since 2015 after working as a (re)insurance consultant and expert witness since leaving Carvill America in 2008. At Carvill he was responsible for overseeing production for the group’s three US offices, Bermuda and the group’s analytical subsidiary, ReAdvisory.
He was at CNA Re for 27 years before that, where he was CEO from 1995 until his departure in 2002.
7710 Insurance Company will join other Trean-affiliated insurance companies American Liberty Insurance Company and Benchmark Insurance Company.
Trean floated on the Nasdaq yesterday (16 July), raising $161mn from offering 10.7mn of common stock at $15.00 a share. The share price closed at $15.50 on its first day of trading.
The Wayzata, Minnesota-based program carrier/MGA said the funds from the IPO would help support several areas of its strategy, including strengthening and harnessing the “strong and growing capital base” of its insurance carrier platform.
Trean was founded in 1996 by CEO Andrew O’Brien, a former EW Blanch executive vice president and director.
As of the end of December, it had 17 program partners that it had worked with for more than two years – with an average duration of eight years – as well as five partners added in the previous two years.
Terms of the 7710 transaction were not disclosed. Oppenheimer served as exclusive financial advisor to 7710.