Everspan Group, the fronting carrier platform owned by Octave Specialty Group, has agreed to sell Providence Washington Insurance Company (PWIC) to Rhode Island-based Falvey Insurance Group.
Terms of the deal, which still need regulatory approval, were not disclosed.
PWIC is a Rhode Island-domiciled admitted insurer that Everspan acquired in 2021. It is one of Everspan’s five property and casualty carriers, and Everspan describes it as a redundant shell. Everspan expects the sale to increase its tangible book value by about $11 million.
“This transaction reduces our operating costs without diminishing our capabilities,” said Darwin Lucas, Everspan’s president. He said Falvey sees strategic value in PWIC’s Rhode Island roots, licenses and capabilities.
The sale is part of Octave’s broader restructuring. The company, formerly Ambac Financial Group, sold its legacy financial guarantee business to funds managed by Oaktree Capital Management in September 2025, and rebranded as Octave Specialty Group in November. It now focuses on building and buying MGAs across the US, UK and Bermuda.
Everspan works as a hybrid fronting carrier, supporting Octave’s MGAs and outside programs. According to Octave’s proxy filing, its carriers hold an A- (Excellent) rating from AM Best, which was affirmed in July 2025. Selling a carrier it doesn’t need reduces compliance and administration costs without affecting its capacity to write programs through its remaining four carriers.
For Falvey, the deal could be a significant step. Owning an admitted carrier with existing licenses gives a specialty insurance group its own paper, which reduces its reliance on third-party carriers for some of its business. Buying a licensed shell is usually faster than applying for new licenses state by state.
For MGAs and program administrators, the sale shows the value of licensed carrier entities as more distribution businesses look to take on risk themselves. Fronting carriers such as Everspan, on the other hand, are focusing on efficiency. Fewer, better-used carriers make sense when the business model depends on fees and reinsurance rather than retaining risk.
Agents and MGAs that work with Everspan should see no change, as the company says the sale won’t reduce its capabilities.
