18 December 2023

Integrated Specialty Coverages (ISC) is lining up capacity for a new US allied health program led by Chantelle Burton, while the AI and data analytics-driven MGA is poised to finish the year at around $600mn of premium, representing a doubling in size since KKR’s 2021 buy-in, Program Manager can reveal.

The Matt Grossberg-led firm has grown top line and Ebitda organically by almost 75 percent since the KKR deal, building out its portfolio to over 40 programs that have expanded at pace as well as adding to the platform with select M&A transactions.

The growth trajectory this year has been significant, climbing from around $450mn of premium volume in 2022 and $325mn in 2021.

The proposed launch of an allied health program is the latest by the company and follows the recent addition of an accident and health program in the UK.

Houston-based Burton was most recently at CNA, and has held previous underwriting roles at Skyward Specialty, Everest and ProAssurance, as well as broker positions at US Risk and Amwins.

The program is expected to operate on a binder basis with London capacity and is on course for a 1 January launch.

The allied health program will be offered on an E&S basis, in line with almost all of the programs on the ISC platform, which has a strong focus on the wholesale distribution channel.

Speaking to this publication, Grossberg said around 30 percent of the MGA platform’s business is on a binding authority basis, and that when dealing with London it typically does so with binders.

Around 15 percent of its programs are direct with an insurer, and the rest are supported by panels of reinsurers on a quota share basis behind a hybrid fronting carrier.

ISC moved quickly in the summer to successfully replace Vesttoo-related capacity fronted by Clear Blue on its commercial trucking MGA Paramount.

Commenting on traction at ISC in the two and a half years since the KKR deal, Grossberg said: “We’re doing well. We’ve had significant success building out our programs and getting them all to profitability, which has been fantastic.

“We have not only hit our stride organically, there’s been movement on the M&A side,” he continued.

M&A pipeline and technology

The main focus of ISC has been on growing its business organically, including through the launch of new programs, which have generated a significant return on investment.

Typically, the firm has viewed the M&A market as challenging, particularly as interest rates have gone up but Ebitda multiple MGA valuations even for small deals have not adjusted down.

However, ISC is working on a number of M&A opportunities and is optimistic it will close deals in the first quarter of 2024.

It will usually target potential acquisitions where there is value from synergies that it can work into the equation, including through the application of its AI and data technology.

ISC was launched by Grossberg in 2016 with Two Sigma’s private equity business Sightway Capital coming in as its majority investor in 2017. The firm retained a minority interest following the KKR deal.

From the outset ISC has had a heavy focus on technology, with an end-to-end insurance platform that combines efficient proprietary processing and back-office functions with AI and data analytics to drive down expense ratios and loss ratios for its insurer and reinsurer providers.

“Our technology has advanced to the point where we have almost every program on the platform, including our machine learning and AI capabilities that allow us to quote, bind and issue with automated underwriting,” said Grossberg.

The platform allows for efficiency drivers such as automated surplus lines filings and billing.

View this article here: https://www.program-manager.com/news/isc-set-to-launch-allied-health-program-as-premiums-head-to-600mn/ 

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