Private equity firm Preservation Capital Partners has made a strategic investment in construction-focused MGA Cove Programs. Last year, Preservation Capital acquired an interest in Ascent Underwriting, a cyber and specialty lines MGA.
The business will manage in excess of $200 million in gross written premium, making it one of the largest independently owned emerging risk and specialty lines MGAs. Ascent and Cove will continue to operate under their respective brands. However, senior management will work together.
“Joining with Cove will give us important critical mass,” said David Umbers, who will be executive chairman of the combined group. “Like Ascent, Cove Programs are innovators; by driving forward together we will have greater breadth and resources to serve our brokers and clients. It will also extend each company’s distribution, both inwards and outwards. We are excited by the combination and growth opportunity that lies ahead of us, and together will focus on continued organic growth with the objective of significantly scaling the business.”
“We are uniting at a corporate level; however, there will be no change in who does what from day to day,” said Kevin Hastings, who will be the chief executive of the combined group. “Instead we will realize synergies between our two entirely complementary businesses. Together we have no business overlap – only opportunity. For example, Cove’s clients include over 60 top US homebuilders and 70 top commercial general contractors. Ascent’s cyber insurance products will be extremely valuable to them.”
“Ascent has made significant progress since our initial investment just over a year ago, particularly in the areas of product development and distribution,” said Jatender Aujla, a partner at Preservation Capital. “Cove is an extremely impressive business with a focus on highly specialized niches generating superior underwriting and insurance placement results. The companies have highly respected brands, the loyalty of brokers and customers, and incredibly experienced management teams supported by industry-leading specialists. Together they comprise a very strong business possessing all the ingredients for controlled, successful growth focused on generating superior underwriting results while serving the broad needs of their brokers and clients.”