16 March 2016Actuarial & underwriting

Coverys acquires interest in captive management firm

Coverys, provider of medical professional liability insurance, has made a strategic acquisition of a minority interest in captive management firm Strategic Risk Solutions (SRS).  As part of the agreement, Coverys will have a representative welcomed to the SRS board. Coverys will have no day-to-day operational involvement in SRS however.  Since 2002, SRS has been owned by its senior management team and is the largest of the few independently owned firms among the leading captive managers. The addition of Coverys as a strategic shareholder provides SRS with an opportunity to expand its growing client base while adhering to the independent captive management model. Brady Young, president and chief executive officer (CEO) of SRS, said: “Remaining independent is paramount to our business for both staff and clients alike. Coverys’ investment provides us with not only an effective option to perpetuate our independence but a tremendous opportunity to build on what we have developed.“Like SRS, Coverys has a long-term perspective and is very focused on building strong relationships with its clients.” Gregg Hanson, president and CEO, Coverys, added: “We are excited to have an ownership stake in SRS which we view as the premier captive management firm. Our investment will ensure continued access to SRS’ expertise for Coverys clients interested in using captive insurance options as part of their overall risk financing strategy.”