'Connected' Headline of the Day
Insurance broker Hub valued at $29 billion in fresh investment round | Reuters
Hub International has raised nearly $1.6 billion in a funding round that valued the Hellman & Friedman-backed insurance broker at $29 billion and was led by T Rowe Price, Alpha Wave Global and Singapore's state investor Temasek.
The investment, however, could push back any plans for a potential return to the public market, underscoring a trend where several companies are delaying their flotations to avoid regulatory demands with the help of ample private capital.
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Such deals allow buyout firms to retain their portfolio companies longer while widening the investor base. Hub, acquired by H&F in a $4.4 billion deal in 2013, said on Monday it does not expect to use the proceeds to meet redemption requests for investors. The $29 billion is the largest enterprise value for a private insurance broker, it said.
"A $29 billion valuation in this environment tells you investors are betting on future consolidation and growth. It also puts Hub in a strong position if they decide to revisit public markets," said NMS Capital Group CEO Trevor Saliba.
The Chicago, Illinois-based insurance brokerage was valued at $23 billion in 2023. Formed in 1998 by merging 11 Canadian brokerages, Hub listed on the Toronto Stock Exchange in 1999 and the New York Stock Exchange in 2002, before being taken private in 2007.
InsurTech/M&A/Financeđ°/Collaboration
M&A Hits 5-Year First-Quarter Low But Big Deals Loom M&A Hits 5-Year First-Quarter Low But Big Deals Loom
Mergers and acquisition insurance sector deals dropped 15% to 141 in the first quarter of 2025, a decline from 166 in the first quarter of 2024.here were 141 announced insurance agency mergers and acquisitions in the first quarter of 2025, down 15% from 166 in the same period in 2024, according to a report from OPTIS Partners, an investment banking and financial consulting firm specializing in the insurance industry.
This marks the slowest quarter since the second quarter of 2020 and nine consecutive quarters where M&A activity has fallen below the long-term trend line. In 2024, brokerage mergers and acquisitions were down 10% from 2023. Yet, the number of deals was still above pre-pandemic levels.
Nearly three-quartersâ73%âof all transactions were private-equity backed. Property & casualty agency sales accounted for 68% of transactions in the first quarter.
Despite the lull in deals, experts suggest that deal activity is likely to increase again later this year. âWe think the pace will ultimately pick up this year because of the large number of active buyers in the market, although current economic uncertainties may cause a bit of a delay," said Steve Germundson, a partner at OPTIS Partners.
Further, 2025 should bring more mega-deals, following on the heels of Aon's acquisition of NFP and Marsh McLennan's acquisition of McGriff Insurance Services last year. Several private equity-backed firms are getting ready to put themselves on the market or recapitalize, according to Timothy J. Cunningham, managing partner, OPTIS.
âWe also expect more large privately owned agencies will be sold this year," he added. âThe sale of San Francisco-based Woodruff-Sawyer, with $268 million in estimated revenues, points to further mega-deals this year."
Aquiline launches Avondale Risk, a National Platform for Leading Boutique TPAs and Managed Care Providers
[Ed. Note: Not Aquiline's first venture into TPA consolidation. Aquiline Capital Partners sold Alacrity Solutions to Kohlberg & Company in 2019. Kohlberg subsequently put Alacrity up for sale in 2022. BlackRock Alternatives acquired a majority interest in Alacrity from Kohlberg in 2023. In 2025, a consortium of existing financial partners, including Antares Capital, Blue Owl Capital, and KKR, took over Alacrity in a debt restructuring.]
Aquiline, a private investment firm specializing in financial services and technology, today announced the formation of Avondale Risk, a national platform purpose-built to bring together the country's specialist workers' compensation, liability, and managed care third party administrators (TPAs) and service providers.
Avondale Risk is designed to unite highly specialized regional firms from across the country. By joining Avondale Risk, these firms can maintain their boutique service models while gaining access to enterprise-grade resources, including innovative technology, strategic capital, and shared expert operational support. The result will be stronger outcomes for clients and a national platform with local expertise at its core.
Concurrent with the launch of Avondale Risk, three of California's most trusted boutique firms - Intercare, InterMed, and George Hills - have joined the platform. These organizations bring deep specialization in workers' compensation, liability, and managed care, with long-standing reputations for service, results, and client partnership.
Bestow Raises $120 Million in Oversubscribed Series D Funding Round
Bestow (Dallas), a provider of technology solutions to the life and annuities industry, has closed a $120 million oversubscribed Series D funding round. The round includes both primary and secondary investments and is co-led by Growth Equity at Goldman Sachs Alternatives (London) and Smith Point Capital (San Francisco). The company also secured a $50 million credit facility from TriplePoint Capital (Menlo Park, Calif.).
The funds will support the expansion of Bestowâs enterprise platform and the development of new products and services for life and annuity providers. The company plans to grow its workforce to meet rising customer demand.
âThis investment strengthens Bestowâs position as the preferred partner for life insurance and annuity providers seeking to modernize and scale,â comments Melbourne OâBanion, co-founder and CEO, Bestow. âWe are accelerating product innovation to help the industry stay ahead of market trends, unlock new opportunities, and build lasting competitive advantages through technology.â
News
âDonât Get in My Way,â the New Acting Head of FEMA Warns Staff
The new head of the federal agency tasked with responding to disasters across the country warned staff in a meeting Friday not to try to impede upcoming changes, saying that âI will run right over youâ while also suggesting policy changes that would push more responsibilities to the states.
David Richardson, a former Marine Corps officer who served in Afghanistan, Iraq and Africa, was named acting administrator of the Federal Emergency Management Agency on Thursday just after Cameron Hamilton, whoâd been leading the agency, also in an acting role, was fired.
Richardson has been the Department of Homeland Securityâs assistant secretary for countering weapons of mass destruction. He does not appear to have any experience in managing natural disasters, but in an early morning call with the entire agency staff he said that the agency would stick to its mission and said heâd be the one interpreting any guidance from President Donald Trump.
Prefacing his comments with the words âNow this is the tough part,â Richardson said during the call with staffers across the thousands-strong agency that he understands people can be nervous during times of change. But he had a warning for those who might not like the changes â a group he estimated to be about 20% of any organization.
âDonât get in my way if youâre those 20% of the people,â he said. âI know all the tricks.â
Announcements
Progressive Drives Small Business Forward with $1 Million in Commercial Vehicle Grants
Progressive InsuranceÂź, in cooperation with Hello Alice, today announced the opening of the 2025 Driving Small Business Forward grant application, committing $1 million in grants to empower small businesses across the United States. Twenty recipients will be awarded $50,000 each to go toward the purchase of a commercial vehicle and related expenses.
"Our mission extends beyond simply providing funds; we're investing in the growth of small businesses across the country," stated Karen Bailo, Commercial Lines President at Progressive Insurance. "With $1 million in grants planned to be distributed this year, we'll reach over $2.5M in funding since we started the Driving Small Business Forward fund. We're proud to be a catalyst for their businesses to continue to move forward."
To date, Progressive has distributed $1.5 million in funding to 40 recipients through its collaboration with Hello Alice.
"This grant enabled us to invest in specialized equipment, enhancing the safety and efficiency of our bee removal operations. It also allowed us to expand our Juvenile Hall Beekeeping Program, teaching at-risk youth valuable skills and the importance of pollinator conservation," said Dermot Jones, owner of Jones Family Bee Removal and 2024 grant recipient.
People
Troy Derda joins Solera as Vice President of US Claims Solutions
Claims Leader Alert! Please join us in welcoming Troy Derda to the Solera Holdings, LLC. family as Vice President of US Claims Solutions. đ
With more than 33 years of experience in the technology and insurance space, Troy brings deep expertise in P&C, having worked with the top 25 carriers in the U.S. to reimagine claims processes and operational design.
Prior to joining Solera Holdings, LLC.*, Troy led TAG Marketing and spent over three decades at CCC Intelligent Solutions, as well as roles at ProcessClaims, IBM, Allstate Insurance, and his familyâs collision repair shop in Milwaukee.
Troyâs unique perspectiveâspanning carriers, technology, and the shop floorâmakes him a powerful addition to our mission of transforming claims through innovation and data.
Welcome Troy Derda! Let's go. đ
Financial Results
Kin Reports 35% YoY Revenue Growth in Q1; California Market Expansion Propels Results
Kin, the pioneering, direct-to-consumer, digital home insurance provider, today announced operating results for its first quarter ended March 31, 2025.
"We're starting 2025 with strong results â 35% year-over-year revenue growth and substantial gains in profitability. This performance reinforces our disruptive force in the insurance market," said Kin Founder and CEO Sean Harper. "Our 95% gross profit margin demonstrates the superior efficiency of our direct-to-consumer model, challenging the outdated structures of traditional insurance agencies and distributors."
Kin delivered $47 million in total revenue during the first quarter of 2025, up from $34.9 million in the first quarter of 2024, and generated $13.3 million in baseline operating income that represented a nearly 97% year-over-year increase.
"Typically insurance broker and agent operating margins are in the mid to high 30s. Our equation is distinct because we invest more in technology than a traditional broker and have lower variable costs. This quarter's 42% baseline operating income margin demonstrates the strength of our business model and its ability to generate sustainable profits," said Kin CFO Jerry Fadden.
Commentary/Opinion
A Developerâs Vision for Building Resilient Insurance Platforms
In this post-modern world of insurance technology, Naveen Kondeti, a cloud architect and insurance IT veteran from top to bottom, provides a valuable perspective on how insurance platforms can leverage powerful, revolutionary modern customization and integration strategies.
His latest research outlines a developer-focused approach to scalable innovation. The purpose of the INFRA program shouldnât just be to build big projects, but rather to build the right projects for the right reasons.
Jutroâs Role in Modern Interfaces
At the core of their digital experience creation is the Jutro framework, an industry-centric, dynamic UI platform for the insurance industry. Its component-based architecture is designed to make things easy, with domain-specific components that make it easier to build complex, responsive, accessible apps. Jutro helps development teams cut down redundant coding effort by 43%, enhance performance, and deliver applications that are intuitive across desktops and mobile devices alike.
That kind of responsiveness is key in todayâs insurance world, where agents and adjusters are more dependent on a mobile experience than ever before. With Jutro, insurance carriers have reported not only performance gains but also operational improvementsâsuch as a 28.5% boost in adjuster productivity and a 41% faster learning curve for claims handlersâthanks to uniform design patterns and optimized state management tools.
Tariffs/Insurance
Tariffsâ Effects on Collision Repair, Insurance âVery Volatile, Very Importantâ - Autobody News
During a recent CIECA webinar, Ryan Mandell, director of claims performance for Mitchell International, presented his thoughts on how tariffs will affect the collision industry. In his role, Mandell works frequently on consultancy with industry material damage leaders.
He called the subject of impending tariffs a âvery volatile, very importantâ one âthat really has the potential to disrupt many of our organizations.â
That potential volatility, he said, is driving widespread uncertainty about the economy, and present in that overall feeling are fears about how tariffs will impact collision repair and its intertwined relative, auto insurance. The CEICA audience was on hand to hear about how tariffs will affect the automotive supply chain and the impact that will have on total loss, the cost of parts and more.
Mobility
Waymo Says Its Autonomous Driving System Cuts Pedestrian Injury Crashes by 92% - Autobody News
Waymo's autonomous driving system is proving to be significantly safer than human drivers, particularly in preventing injuries to vulnerable road users, according to newly published research from the company.
The findings, which Waymo said in a blog post are based on more than 56.7 million miles of driving data, show substantial reductions in crash rates involving pedestrians, cyclists and motorcyclists when compared to human-driven vehicles.
According to the study, which is slated for publication in the Traffic Injury Prevention Journal, the Waymo Driver system recorded a 92% decrease in pedestrian injury crashes. Injury crashes involving cyclists and motorcyclists were both reduced by 82%, and intersection-related injury crashes -- one of the leading sources of severe accidents -- dropped by 96%.
The autonomous system also achieved an 85% reduction in crashes involving suspected serious or worse injuries, reinforcing claims that self-driving technology may provide a significant public safety benefit.
âItâs exciting to see the real positive impact that Waymo is making on the streets of America as we continue to expand,â said Mauricio Peña, Waymoâs chief safety officer. âThis research reinforces the growing evidence that the Waymo Driver is playing a crucial role in reducing serious crashes and protecting all road users.â
âItâs encouraging to see real-world data showing Waymo outperforming human drivers when it comes to safety,â said Jonathan Adkins, CEO of the Governors Highway Safety Association. âFewer crashes and fewer injuries -- especially for people walking and biking -- is exactly the kind of progress we want to see from autonomous vehicles.
Recommended Events
Carrier Management announces agenda and speakers for its 2025 InsurTech Summit |Online Event | May 20, 2025
Today, Carrier Management announced the agenda and speakers for The InsurTech Summit 2025. The event is designed for: carrier executives, entrepreneurs and investors, insurance technologists, wholesale and retail agents, and other professionals. Attendees will join top industry leaders on May 20th to explore AI integration, legacy system challenges, legal pitfalls, and the power of insurer-InsurTech collaboration.
To register for this free virtual event and view the complete agenda, visit: The InsurTech Summit 2025
Podcast Sponsor
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