Novatae Risk Group has announced the purchase of trucking managing general agency (MGA) Specialized Program Solutions (SPS). It is the second trucking MGA deal to close on the same day this summer, even though some carriers have trimmed limits and reduced their appetite for long-haul trucking.
Novatae announced the deal on October 1, saying it had closed its purchase of the assets of SPS, based in Chester, New Jersey, on August 1, 2026. Federated Mutual Insurance Company completed its acquisition of High Definition Vehicle Insurance (HDVI) on the same day. Neither buyer disclosed financial terms.
HDVI, a full-stack MGA founded in 2018, underwrites trucking fleets using telematics data, and more than 100 agencies and 500 producers write business through it.
Read more: MGA consolidation reaches trucking insurtech HDVI
Novatae houses the wholesale operations of World Insurance Associates and operates as a wholesale brokerage, MGA and program manager.
SPS was founded in 2022 and handles underwriting, marketing and program administration for long-haul trucking risks across the US. The company describes its model as a modern approach to commercial trucking insurance, built on a proprietary technology platform, data-driven underwriting and responsive management of its book.
According to its website, SPS requires electronic logging device (ELD) integrations and uses telematics and proprietary scoring models to evaluate risk throughout the policy term. Its programs cover for-hire trucking operations, along with private fleets hauling non-hazardous property across the continental US.
Christopher Daggett, chief executive officer of SPS, said the company set out to change how the class is underwritten.
"Since launching SPS, our goal has been to transform the way trucking insurance is underwritten by combining industry-leading technology, real-time comprehensive data and strict underwriting discipline," he said.
Some insurers have trimmed limits, raised attachment points or reduced their appetite for volatile segments such as long-haul trucking. Howden launched a dedicated US trucking practice in April, designed to use data and safety technology to influence how underwriters view fleets.
The pullback is visible in umbrella towers. Brian Pierce, chief underwriting officer at Victor US, has said that where businesses once bought $25 million umbrella policies, many can now secure only $10 million, as reinsurers have responded to rising losses by cutting umbrella limits.
Verdicts in trucking cases continue to climb. The median nuclear verdict in trucking cases reached $51 million in 2024, up from $44 million in 2023 and $21 million in 2020, according to Marathon Strategies.
Read more: Insurance costs outpace revenue at America's biggest trucking fleets
Large fleets are paying more for coverage. A Demotech analysis of SEC filings found that insurance and claims spending at the 10 largest US trucking companies rose 54.4% between 2021 and 2025, from $992 million to $1.53 billion, while their revenue grew 9.95%.
Lawmakers have started to respond. The Forum Accountability and Integrity in Roadway (FAIR) Trucking Act, introduced in September 2025, would route large interstate trucking cases into federal courts, where median awards run lower than in state courts. Florida's 2023 tort reforms moved the state from No. 2 to No. 10 nationally for nuclear verdicts.
The two deals close in a delegated authority market facing closer scrutiny. AM Best has revised its outlook for the MGA segment from positive to stable, citing moderate growth, tighter renewal economics and increased partner scrutiny. US MGA premium rose 12% in 2025 to $102.6 billion, according to statutory filings.
According to HDVI, its products have been underwritten by Spinnaker Insurance Company under a fronting arrangement, and HDVI has not said whether the Federated deal changes that structure. HDVI will operate as a largely autonomous subsidiary, and its agency relationships continue without renegotiation.
Novatae's announcement did not name the carrier that provides capacity for SPS. It also did not say whether SPS will keep its brand, its Chester office or its current leadership.
Josh Taylor, managing director at Novatae, said the SPS team had built its platform "in a short period of time". He cited the MGA's "technology-driven approach to underwriting" and said the deal would add depth to Novatae's transportation and specialty program offerings.
Daggett said joining Novatae would allow SPS to "accelerate that vision" while the MGA continues to serve its agents and insureds.
For agents placing trucking risks through either MGA, the open question is the paper. Until Novatae names SPS's carrier and HDVI confirms whether its fronting arrangement continues, agents should check with both MGAs which carrier will be on renewals, and whether the security behind them has changed.
