Mitsui Sumitomo acquires fronting company Transverse Insurance

10-08-2022

Mitsui Sumitomo acquires fronting company Transverse Insurance

Mitsui Sumitomo Insurance has agreed to acquire Transverse Insurance Group, a US-based hybrid fronting company, founded in 2018 by Erik Matson and Dave Paulsson together with Virgo Investment Group.

Mitsui said the acquisition underlines its long-term growth ambitions and is a significant step towards further building out its US presence and generating revenue diversification by accessing the fast-growing specialist managing general agent (MGA), wholesale and other broker-led distribution channels for property, casualty, marine, and specialty business.

Transverse links producers and (re)insurers to underwrite domestic US risks on an admitted or excess and surplus (E&S) lines basis. Its recent growth trajectory and robust pipeline of MGA partners have allowed it to capture a meaningful share of the US fronting market in a short space of time. 

The growth of the US hybrid fronting industry outpaced other segments at 30% during 2016 – 2021, driven by the underlying demand and growth in the E&S markets. This creates substantial growth opportunities for companies like Transverse.

Tamaki Kawate, director, head of International Business of Mitsui Sumitomo Insurance, and Johan Slabbert, chairman & CEO of MS Amlin Distribution, said: “This acquisition marks the start of a new phase for MSI as a market-leading global re/insurance business. It not only demonstrates our commitment to sustainable growth in the US but highlights our differentiated proposition with the stability and financial strength of our parent company. This acquisition will allow Transverse to accelerate its competitive advantage by securing greater access to product lines and new distribution opportunities, serving the evolving and long-term needs of its MGAs and (re)insurer partners more effectively.” 

Erik Matson, chairman, CEO, Co-Founder of Transverse added, “We are all very excited about this development, and what it will mean for our future growth opportunities. This is a significant milestone for everyone involved in our growth journey and we’re delighted to have found a home in MSI. Its balance sheet strength, rating, and international network will exponentially fast-track our development and innovation. This acquisition cements the success of our business and reiterates the value of our hybrid fronting model as a valuable tool that allows our partners to maximise the market cycle.”

Mitsui Sumitomo, acquisition, Transverse Insurance, Erik Matson, Tamaki Kawate, Johan Slabbert, MS Amlin Distribution

Captive International