Flexpoint Ford announced the closing of a single-asset continuation vehicle for SageSure, one of the largest managing general underwriters focused on catastrophe-exposed markets. The vehicle closed with total commitments of more than $460 million, including commitments from the general partner and rollover investors.
The transaction enables Flexpoint to extend its ownership of SageSure while giving existing investors the option to realize liquidity or continue their investment alongside the firm. The continuation vehicle was led by Lexington Partners, with participation from Barings and Round2 Investment Partners.
Founded in 2009, SageSure has grown into one of the largest property MGUs in the U.S. The company has $3.2 billion in written premium and protects more than 970,000 policyholders across 16 states.
Since Flexpoint’s original investment in May 2023, SageSure has continued to expand its carrier and distribution relationships. The company has also broadened its product capabilities and completed strategic acquisitions of GeoVera and Olympus.
GeoVera is a residential earthquake MGU. Olympus is a mass-affluent residential property MGU focused on Florida.
Flexpoint said SageSure has demonstrated the ability to deliver innovative property insurance solutions in coastal markets while maintaining underwriting discipline. The firm believes SageSure remains well positioned to bring its underwriting capabilities to additional markets and policyholders.
The transaction also brings in new capital partners that share Flexpoint’s view of SageSure’s long-term growth opportunity. SageSure said the continued partnership with Flexpoint provides a stable foundation for its next phase of expansion.
Jefferies served as financial advisor to Flexpoint on the transaction. Kirkland & Ellis served as legal advisor to Flexpoint, and Simpson Thacher & Bartlett served as legal advisor to Lexington.
Flexpoint Ford is a specialist private equity firm focused on financial services and adjacent verticals. Founded in 2005, the firm manages approximately $9 billion in assets and has completed more than 100 investments.
SageSure provides residential and commercial insurance solutions, service and claims management, and buying experiences for producers and carrier partners. Lexington Partners is a secondary private equity and co-investment manager with more than $84 billion of total capitalization.
KEY QUOTES:
“SageSure’s ability to deliver innovative property insurance solutions in coastal markets while maintaining underwriting discipline has resulted in a company that is admired by a diverse group of stakeholders, including policyholders, insurance agents, carrier partners, and reinsurance markets.”
Dominic Hood, Managing Director at Flexpoint
“We are excited to continue our partnership with the SageSure management team and believe the company is well-positioned to bring its differentiated underwriting capabilities to more markets and policyholders over the coming years. This transaction has allowed Flexpoint to provide the option of liquidity to our existing investors in a high-performing company while welcoming a new group of partners who share our conviction in SageSure’s future prospects.”
Chris Ackerman, CEO of Flexpoint
“Our continued partnership with Flexpoint provides a stable foundation for SageSure’s next phase of expansion, and we’re grateful for the momentum we’ve built together over the past three years. As we continue to scale, we look forward to welcoming new capital partners who share our commitment to bringing innovation and stability to the markets that need it most.”
Terrence McLean, President and CEO of SageSure
“We are pleased to lead the investor group in this continuation vehicle and to partner with Flexpoint and SageSure. SageSure’s track record of both organic growth and disciplined M&A combined with Flexpoint’s deep expertise in the insurance industry have resulted in a compelling long-term investment opportunity, and we look forward to supporting the platform’s continued growth.”
Jeff Bloom, Partner at Lexington
