Finance

Trusted Resource Underwriters Exchange Gains Exceptional Rating and Strategic Investment

COLUMBUS, Ohio, March 20, 2024 — Demotech, Inc., a pioneering company that evaluates and rates independent regional and specialty Property and Casualty insurance companies, has announced the conferment of an A (Exceptional) Financial Stability Rating® to Trusted Resource Underwriters Exchange (TRUE). This rating signals the dawn of a significant development in the insurance space as Gallatin Point Capital joins forces with American Family Insurance Group, marking the beginning of a robust partnership following Gallatin Point Capital's acquisition of a controlling interest in the attorney-in-fact for TRUE.

Private Investment Spurs Growth in Insurance Market

The recent venture echoes the strategic forethought by private investment force Gallatin Point Capital, which has committed to an investment surpassing $1.25 billion in TRUE. This considerable financial move coincides with American Family Insurance Group bringing to the table its substantial capabilities in distribution, client services, and claim management. This partnership is poised to inject much-needed capacity into Florida’s residential property insurance market and to expand TRUE’s reach across the country, leveraging the expertise of an experienced management team.

Demotech’s President and co-founder, Joseph Petrelli, emphasizes the magnitude of this partnership and the comprehensive financial planning underpinning it. “The moment Gallatin Point Capital—a firm of substantial repute—decides to invest over $1.25 billion in TRUE and joins hands with American Family Insurance Group for unmatched services, it becomes evident that the initiative is grounded in a detailed and robust financial strategy,” Petrelli remarked.

A Team of Professional Excellence at the Helm

“The synergy between the consumers and producers that TRUE will serve is significantly enhanced by a management team that is not just talented, but professional as well,” commented Sharon Romano Petrelli, CPCU, AIAF, ARC, CCP, Vice President and co-founder of Demotech. Sharon highlighted the significance of the leadership within TRUE, noting that Fabian Fondriest is stepping into the role of Executive Chairman, with Tony Scavongelli taking the reins as Chief Executive Officer. These appointments suggest a promising direction for TRUE's future endeavors.

Tony Scavongelli shared his enthusiasm for the upcoming journey, “As I take on the CEO role at Trusted Resources Underwriters, I am filled with anticipation to work alongside Gallatin Point Capital, Fabian Fondriest, our business partners, and the dedicated TRUE team on launching this innovative venture.”

Demotech, Inc.: Analyzing Financial Stability with Precision

Founded in 1985, Demotech, Inc. has carved its niche as a financial analysis firm specialized in assessing the financial solidity of regional and specialty insurers. The firm’s inception introduced a novel and vigorous approach to financial stability ratings (FSRs), distinguishing itself by focusing on the execution of insurers' business models over their financial size. With the rising prominence of Demotech, regional and specialty Property and Casualty insurers received the attention they deserved.

Over the years, Demotech has not only broadened its scope of accreditations but has also rated and reviewed an impressive roster of 460 insurers operating within the United States. As of July 11, 2022, the firm's stature grew with its registration with the U.S. Securities and Exchange Commission as a nationally recognized statistical rating organization (NRSRO) dedicated to the rating category for insurance companies. For more in-depth information about their analytical process and more, visit their website at www.demotech.com.

TRUE: Poised for National Expansion and Enhanced Homeowners Insurance

With its establishment in 2020 by American Family, TRUE emerged as a reciprocal insurer with a clear mission to ameliorate homeowners' insurance services within the storm-prone regions of Florida, as well as to extend its assistance nationally. The recent majority stake acquisition by Gallatin Point Capital in the attorney-in-fact for TRUE, coupled with the procurement of over $1.25 billion of committed capital, reinforces TRUE’s commitment to amplifying underwriting capacity in Florida and intent to scale up its national footprint.

TRUE sets its sights on strategic nationwide growth, emphasizing its homeowners' insurance product offering. It relies on a unique partnership distribution model to bolster its market presence, building on both new and pre-established partnerships. This collaboration and growth strategy signify an invigorated phase of expansion and promise for the end-users.

Meanwhile, American Family upholds its investment in TRUE, retaining a minority ownership stake in the attorney-in-fact and continuing to extend its adept distribution and client services in support of TRUE’s ambitious journey.

A Robust Future with Expert Leadership

With the integration of Gallatin Point Capital's significant capital investment and American Family Insurance Group's deep-rooted support, TRUE is on a trajectory towards reshaping the landscape of home insurance in high-risk areas and beyond. The emphasis on a skilled management team brings into perspective the caliber of expertise and professionalism that is anticipated to guide TRUE's venture into uncharted territories confidently.

The collaboration is a testament to the collective effort and strategic planning that underpins TRUE's business model. It reflects a fundamental understanding of the market dynamics and the expertise required to steer the services towards satisfaction and trust amongst policyholders. The newly appointed executive leadership team, with Fabian Fondriest and Tony Scavongelli at the helm, personifies the dedication and comprehensive industry insight that will propel TRUE forward.

This conjunction of financial potency and leadership acumen sets the stage for TRUE not just to sustain operations in the competitive marketplace but to thrive and create a positive impact for homeowners seeking reliable and robust insurance solutions.

Conclusion

The strategic partnership of Gallatin Point Capital and American Family Insurance Group with TRUE stands as a pivotal moment in the insurance industry. It demonstrates how private investment, when steered with cautious optimism, deep-seated industry knowledge, and a focus on service quality, can bring about uplifting changes in a sector as critical as property and casualty insurance, especially in regions vulnerable to natural disasters.

The robust Financial Stability Rating® assigned by Demotech signifies an assurance of TRUE's reliability and commitment to financial solidity, underpinning consumer trust and market confidence. As TRUE embarks on this new chapter, the emphasis on professional expertise and strategic partnerships will be key to their success in providing homeowners with differentiated insurance services that resonate with the needs of the contemporary market and the evolving expectations of policyholders.

This strategic unfoldment, according to industry analysts, is expected to not only fortify the insurance offerings in Florida but also set a precedent for innovative collaborations in the insurance sector at large. With TRUE's expansion plans and the combined support of its partners, the foundations have been laid for a dynamic shift in the insurance landscape, one where financial stability, dedicated leadership, and customer-centric services merge to redefine the essence of property and casualty insurance for the better.

In conclusion, the partnership between TRUE, Gallatin Point Capital, and American Family Insurance Group, sealed with Demotech's validation, carves out a hopeful and exciting path for stakeholders across the insurance spectrum. It fortifies TRUE's position in the market and sparks a sense of anticipation for the transformative prospects that this collaboration will bring forth, not only for the company but for its clientele and the insurance industry as a whole.

About Demotech, Inc.

For those interested in understanding Demotech's role in this venture and its impact on the insurance industry, more information is available on their official website at www.demotech.com. Their groundbreaking work since their inception has established new benchmarks in financial analysis and provided invaluable insights into the stability and performance of insurance entities, forging a path for others to follow.

SOURCE Demotech, Inc.

About Trusted Resource Underwriters Exchange (TRUE)

Trusted Resource Underwriters Exchange remains steadfast in its commitment to provide comprehensive and reliable insurance services to homeowners across Florida and beyond. For further details about TRUE and its services, stakeholders and interested parties are encouraged to glean more insights into their mission and vision for the future.

This news article includes hyperlinked content for easy navigation and additional context for readers.

This is a developing story and we will continue to provide updates as they become available.