Heritage | November 29, 2021
Heritage Insurance Holdings, Inc. (NYSE: HRTG) ("Heritage" or the "Company"), a super-regional property and casualty insurance holding company, announced today that it has entered into a strategic partnership with Slide, a startup InsurTech P&C carrier led by Bruce Lucas, Heritage's former Chairman and CEO, providing it with enhanced technological capabilities and allowing it to participate in the InsurTech sector's upside.
Partnership provides Heritage with the opportunity to:
Leverage Slide's InsurTech capabilities to improve underwriting and rating decisions.
Further capitalize on strong agency relationships by generating commission income on policies that don't meet Heritage's underwriting criteria (e.g., due to geographic concentration).
Participate in the InsurTech sector without potentially significant capital requirements to develop similar capabilities internally.
Based on current publicly traded InsurTech valuations, potential to generate a meaningful capital gain, which, if realized, could provide additional funds for share buybacks or debt retirement.
Terms of the partnership
Heritage will receive:
Approximately 6% equity stake in Slide, an InsurTech P&C carrier with an estimated $250 million post-money valuation, and warrants allowing it to purchase an additional equity interest at Slide's pre-money valuation.
Perpetual, royalty free license to certain aspects of Slide's software.
Transfer ownership of Pawtucket, a dormant P&C carrier licensed in Rhode Island.
Transfer ownership of First Access Insurance Group, a Florida-licensed MGA with minimal earnings.
Provide access to historical claims and underwriting data.
Ernie Garateix, Heritage's CEO, said, "We're excited to partner with Slide and our former colleague on this win-win opportunity. We believe this partnership will significantly accelerate development of our InsurTech capabilities, while providing us with an equity stake in an impressive startup that is developing cutting edge technology."
Financial information, including material announcements about Heritage, is routinely posted on investors.heritagepci.com.
Heritage Insurance Holdings, Inc. is a super-regional property and casualty insurance holding company. Through its insurance subsidiaries and a large network of experienced agents, the Company writes approximately $1.2 billion of gross personal and commercial residential premiums across its multi-state footprint.
Cision PR Newswire | September 21, 2020
Thoma Bravo, L.P, a leading private equity firm focused on the software and technology-enabled services sectors, today announced that it has completed the acquisition of Majesco, a global leader of cloud insurance software solutions for insurance business transformation. As previously announced on August 8, 2020, under the terms of an amended and restated definitive merger agreement, Thoma Bravo agreed to acquire all of the issued and outstanding shares of Majesco common stock for $16.00 per share in cash.
In conjunction with the closing, Majesco's common stock will cease trading before the market opens on Tuesday, September 22, 2020 and the Company will no longer be listed on the Nasdaq stock exchange. Majesco will operate as a privately-held company.
National Flood Services | May 06, 2020
NFS has emerged with a technology platform called Trident that enables end-to-end quoting, applications, policy management, and claims.
NFS launched Trident, which presents a stark contrast to how flood insurance has traditionally been quoted, sold and managed.
NFS has also aimed to make understanding the flood insurance industry easier for agents and policyholders to navigate by supplementing the new application process.
The flood insurance market has historically lagged behind other lines of business when it comes to customer simplicity, agent experience, and innovation. There has been limited progress in terms of operations and workflows within companies, the way in which agents are educated, and how the product is sold. However, one flood solutions provider that boasts a 35-year history and deep expertise in this marketplace is driving innovation and modernization into the flood insurance industry.
National Flood Services (NFS), the #1 provider of flood solutions in the US, has been on a journey over the past two years to reinvent the flood insurance business and transform access to the flood product for agents and customers. Following a major acquisition, NFS has emerged with a technology platform called Trident that enables end-to-end quoting, applications, policy management, and claims, in addition to a wealth of educational resources that serve agents and policyholders.
The transformation of the company began when PEAK6 Investments acquired NFS from Aon in 2018. At that point, the flood insurance market had lacked some of the innovation seen in other fintech sectors, creating a tremendous opportunity and need to transform the customer experience in flood. As part of the company’s reinvention, NFS launched Trident, which presents a stark contrast to how flood insurance has traditionally been quoted, sold and managed.
Within the application, the specific questions that property owners need to answer depend on the property and will vary between customers, making the process often challenging to understand for typical agents, especially if they’re not writing flood frequently.
- Ralph Blust, CEO of NFS.
NFS determined that the quoting, application and policy management process could be significantly simplified using technology to promote a more intuitive and responsive workflow based on the initial responses of an insured. Using Trident, 85% of property owners in the United States – those of the population that are eligible for the lower-risk PRP policy – will be guided through seven questions and provided an instant quote. The platform also integrates third-party data, historical analytics, and optical character recognition (OCR) as a means of simplifying data entry to shorten the process for agent and policyholder.
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“We are solving the complexity of obtaining a quote by streamlining the process and guiding the agent and the policyholder on some of the more intricate application requirements,” said Blust. “As of today, Trident is delivering immediate quotes to two out of three risks, with our goal to be at 95% of all risks getting quoted with us on an immediate basis.”
NFS has also aimed to make understanding the flood insurance industry easier for agents and policyholders to navigate by supplementing the new application process with modern training and education programs to build knowledge and expertise in flood.
On the NFS website today, agents will find over 140 videos that range from one-minute to three-minutes in length and are designed to answer specific questions that an agent or consumer might have about flood insurance. Those include how to file a claim, how to buy insurance, and whether a homeowner needs insurance, alongside many other key topics. Agents can also find longer training webinars that dive deeper into flood-related subjects, such as deciphering various policy types, the different risks that cause flood and specific requirements within the application process.
Another exciting feature on the NFS website is the library of documents available for agents to use when selling flood. “We’ve also given agents a digital library of promotional and marketing material that they can use in order to better solicit flood,” said Blust. “Most agents historically have been hesitant in quoting the flood product and our [mission] has been that if we educate the agent properly and make it easy for the agent to sell the product, more will do that.”
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Since the acquisition of NFS by PEAK6, the flood solutions provider has become a technology and service provider, an advocate of flood insurance, and an education resource on the peril of flood. Being an expert across these services uniquely positions NFS because there’s no other enterprise that’s integrating all three solutions to the insurance community and to consumers.
The education component aimed at agents has been especially successful. Over a six-month period, NFS ran an integrated digital program to 13,000 agents to increase knowledge and awareness of flood. Over that time, the agents that participated in the e-learning program saw a 20% increase in policy growth all over the country, beyond just areas where flood has traditionally been sold. Considering that structures in the US today are three times more likely to have a flood than a fire over the 30-year course of a mortgage, yet only 12% of all homes are insured today for flood, promoting flood insurance education has never been more important.
This shows that if you train agents and create awareness of the exposures that are associated [with flood], the coverage options, and how to complete an application, which is a key denominator in our platform, you can help facilitate the government’s mission to cover every structure that’s exposed to flood, And that’s what we’re here to do, is to support that effort.
- Ralph Blust, CEO of NFS.
AboutNational Flood Services
National Flood Services (NFS) is to make a difference in people’s lives by helping protect what’s important. As a leading flood insurance vendor, we service more than 2.4 million flood policies and $2 billion flood insurance premiums each year. We take pride in knowing that flood insurance provides a critical protection against the world’s most catastrophic and costly natural disasters and is essential to helping rebuild lives devastated by flood. Our 550 colleagues across the U.S. are passionate about building valued partnerships with the industry’s largest Write-Your-Own (WYO) carriers, educating insurance agents through the complexities of flood insurance, and providing innovative solutions to meet the changing needs of today’s property owners.