Transverse Insurance Group Completes Q4 2021 Capital Raise
Debt and Equity Raise Closed in December 2021
For immediate release – Princeton, NJ – January 11, 2022 – Transverse Insurance Group (“Transverse”), a niche-focused specialty insurer, announced today that it has raised $48 million of additional capital to support the planned expansion of its hybrid fronting insurance business in 2022 and beyond.
The $48 million raise was comprised of (i) a private placement of $30 million aggregate principal amount of senior unsecured notes (the "Notes") and (ii) $18 million of follow-on equity capital from incumbent investors.
Transverse expects that with this capital infusion, the Group’s insurance subsidiaries will reach A.M. Best Financial Size Category VIII, thereby furthering its ability to capitalize on growth opportunities within its robust pipeline.
President, CIO and Co-Founder of Transverse, Dave Paulsson stated, “we continue to receive strong support from the credit and equity markets which speaks to the quality of our team, business, MGA and reinsurance partners in completing the capital raise.”
The capital raise follows the closing of several new MGA partnerships in 2021, with Transverse now managing a diverse portfolio of insurance risk with annualized premiums in excess of $400 million. “Transverse is experiencing exceptional demand from high quality MGA partners, and this capital raise allows us to provide additional capacity and expand lines of coverage, capitalizing on the attractive market conditions,” commented Erik Matson, Chairman, CEO and Co-Founder of Transverse.
Piper Sandler & Co. served as sole placement agent for the Notes offering.
The Notes have not been registered under the Securities Act of 1933, as amended (“Securities Act”), or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. The Company offered and sold the Senior Notes only to qualified institutional buyers (as defined in Rule 144A under the Securities Act) and institutional accredited investors (as defined in Rule 501(a)(1), (2), (3) or (7) under the Securities Act) in reliance upon the exemption under Section 4(a)(2) of the Securities Act and the provisions of Rule 506(b) of Regulation D promulgated thereunder.
About Transverse Insurance Group (Transverse)
Transverse Insurance Group is a hybrid fronting carrier serving the program, MGA, and reinsurance markets with offices in New York, New Jersey, and Texas. Transverse is backed by Virgo Investment Group and partner investors. Founded in 2018 by Erik Matson, CEO, and Dave Paulsson, President, Transverse is a global facilitator connecting and enabling partners through access to risk capacity and alternative capital on admitted and surplus lines paper. For more information, please visit www.transverseinsurance.com