Gallatin Point Capital Lands $1.25 Billion Majority Stake in Insurtech TRUE: Kickstarting a Revolution in Home Insurance

In a significant move to bolster its insurance offerings and drive nationwide expansion, private investment firm Gallatin Point Capital LLC has acquired a majority stake worth $1.25 billion in the attorney-in-fact for Trusted Resource Underwriters Exchange (TRUE). The investment will enable TRUE to enhance its underwriting capacity in Florida and strategically expand its presence across the country. With the strong support of Gallatin Point Capital and the continued partnership with American Family, TRUE aims to become a fully national insurance company.

Expanding Underwriting Capacity and National Presence

Gallatin Point’s substantial investment of $1.25 billion into TRUE represents a major milestone for the company. This infusion of funds will provide TRUE with the necessary resources to increase its underwriting capacity in Florida, a key market for the company. Furthermore, with the financial backing of Gallatin Point, TRUE can embark on a strategic expansion plan to establish its presence nationwide, serving homeowners across the United States.

Implementing a Partnership Distribution Model

To achieve its growth objectives, TRUE plans to deploy a partnership distribution model. This model will allow TRUE to leverage its industry expertise while also benefitting from American Family’s continued support in distribution and client services. By collaborating with a network of trusted partners, TRUE aims to broaden its reach and offer its insurance products to a wider customer base.

Leadership Enhancements

TRUE has also made significant leadership enhancements to drive the company’s growth strategy. Fabian Fondriest, formerly the President of American Family Direct and the Chairman and CEO of Homesite Insurance, has assumed the role of TRUE’s Executive Chairman. Fondriest brings a wealth of experience and knowledge to the position, positioning TRUE for success in its expansion efforts. Additionally, Tony Scavongelli, previously Head of Partnerships at American Family, has been appointed as TRUE’s incoming CEO.

Aligning Long-Term Vision and Commitment to the Insurance Sector

Matthew Botein, co-founder and managing partner at Gallatin Point, emphasizes that the investment aligns perfectly with TRUE’s long-term vision and Gallatin Point’s commitment to the insurance sector. TRUE’s focus on delivering high-quality insurance options and its dedication to providing comprehensive coverage resonates with Gallatin Point’s mission to support promising companies in the insurance industry.

Seizing Market Opportunities in Florida

The regulatory changes in Florida present a significant opportunity for TRUE to stabilize the insurance market and support homeowners in the region. With the capacity to provide underwriting services in Florida and leverage its partnership distribution model, TRUE is well-positioned to address the evolving needs of homeowners in the state. By offering competitive insurance products and excellent customer service, TRUE aims to become a trusted provider in the Florida insurance market.

Working Towards Full National Coverage

With the backing of American Family’s industry expertise and Gallatin Point’s substantial investment, TRUE has set its sights on becoming a fully national insurance company over time. By leveraging the synergies between the two partners and building on their respective strengths, TRUE is well-prepared to capture new market opportunities and expand its operations across the country.

Reflecting American Family’s Commitment to Quality Insurance Options

For American Family, this partnership with TRUE reflects its ongoing commitment to providing high-quality insurance options nationwide. Michael Lorion, President of American Family Direct and Homesite, sees the investment as a testament to American Family’s dedication to offering comprehensive coverage and ensuring homeowners have access to trusted insurance products.

Finalization of the Transaction

The transaction between Gallatin Point Capital and TRUE was successfully finalized on December 31, 2023. With the significant investment now in place, TRUE is poised to execute its growth strategy, expand its underwriting capacity, and achieve its vision of becoming a fully national insurance company.

Gallatin Point Capital’s acquisition of a majority stake in TRUE represents a significant investment in the insurance sector. With an infusion of $1.25 billion, TRUE will enhance its underwriting capacity in Florida and embark on an ambitious expansion plan to become a nationwide insurance provider. By leveraging its partnership distribution model, TRUE will capitalize on American Family’s support while accelerating its growth trajectory. With a strong leadership team at the helm and the backing of industry expertise, TRUE is well-positioned to cater to homeowners’ insurance needs across the country, affirming its commitment to providing high-quality insurance options nationwide.

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