K2 Insurance Services Sponsors the Launch of American Mobile Insurance Exchange, a New Reciprocal Exchange That Will Provide Mobile Homeowners Insurance Coverage in Florida
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SAN DIEGO, Feb. 2, 2021 /PRNewswire/ -- K2 Insurance Services, LLC ("K2"), an insurance services holding company, and New York based private equity firm Lee Equity Partners ("Lee"), announced today the formation of American Mobile Insurance Exchange ("AMIE"), a new reciprocal exchange that will protect mobile homeowners in Florida. AMIE is headquartered in St Petersburg, Florida and has received additional financial support from Hudson Structured Capital Management Ltd., doing its re/insurance business as HSCM Bermuda ("HSCM"), a leading asset manager focused on the re/insurance industry. AMIE has earned a Financial Stability Rating® ("FSR") of A Exceptional from Demotech. Inc., a leading rating agency that assigns FSRs and monitors insurance companies for financial stability.
AMIE will focus on writing mobile homeowners and mobile homeowner dwelling fire insurance coverages for manufactured homeowners, largely in Adult Parks, across the State of Florida. "AMIE is focused on providing superior protection and exceptional customer service to its subscribers (policyholders) in Florida," said Jeff LeGare, President of American Mobile Risk Management, LLC ("AMRM") and former consultant assisting K2 with the formation of AMIE. "With strong financial backing, comprehensive coverage offerings and a commitment to providing an exceptional customer experience, AMIE will offer affordable insurance solutions to a market that historically has been underserved."
LeGare's experience in the Florida property market covers almost 30 years and for most of his career, he has focused on catastrophe exposed property markets like Florida, developing a keen awareness of the issues that face companies that are focused on writing personal and commercial lines property insurance.
"We are thrilled to announce the launch of AMIE in partnership with Jeff LeGare and HSCM. AMIE's unique structure as a policyholder-owned reciprocal exchange positions the Company to meet the underserved needs of the Florida mobile home market," said Robert Kimmel, Chairman of AMRM's board of managers and CEO of K2.
As President of AMRM, LeGare will lead the day-to-day operations of the exchange. He also serves on its board of managers along with executives of K2. Collectively, the board of managers will oversee the strategic direction of the exchange. Further, AMRM will have a close association with K2, utilizing the organization's wide range of knowledge and experience in the manufactured home niche to assist in the daily oversight of the business. K2 and its subsidiaries have developed a distinctive approach to producing, underwriting, and adjudicating claims in the manufactured home business and its association will allow AMRM to leverage K2's deep institutional knowledge.
Kimmel added further, "AMIE will be able to provide a truly differentiated approach to the market given the ability to leverage the 40 plus years of experience providing highly innovative and successful mobile home products to the market through our Aegis General subsidiary."
K2 and Lee equity served as sponsors for the formation of AMIE, leading an initial tranche of surplus notes that included investment from AMRM management as well as strategic partners. HSCM is partnering with AMIE to fund additional surplus notes that round out the capitalization of the exchange.
"We are excited to work with K2 and AMIE as they apply their wealth of experience to the lower-value dwelling Florida market," commented Edouard von Herberstein, Partner and Chief Underwriting Officer – HSCM Bermuda. "We believe the timing of the launch is excellent as the underwriting environment begins to improve in the Florida personal lines space."
AMIE's organizational structure as a reciprocal insurance exchange aligns its interests with its members, ensuring that its focus remains with its customers. A reciprocal insurance exchange is an unincorporated association owned by its policyholder-members who exchange insurance policies to spread risk by pooling their money together. There are no shareholders. The day-to-day operations of the exchange are managed by an attorney-in-fact ("AIF"), which, for AMIE, will be Florida-based American Mobile Risk Management, LLC.
"Customers want an insurer that is a partner, providing them with a fast, friendly and fair claims experience, which is a high priority for us," said LeGare. "AMIE will have access to the K2 organization's extensive, time-tested claims handling resources in the event of catastrophic events, allowing our customers to complete repairs and return to their homes as quickly as possible."
TigerRisk Capital Markets & Advisory acted as sole transaction advisor to K2 and placement agent to AMIE.
About K2 Insurance Services
K2 Insurance Services (K2) is an insurance services holding company, which owns and controls a diverse set of specialty program administrators. Through its MGAs, K2 markets, underwrites, and services over $1 billion annually in niche commercial and personal insurance premiums. From workers' compensation for high hazard exposures such as commercial transportation to personal lines coverage for manufactured homes, K2 helps insure clients across a diverse array of risks and industries. K2 is headquartered in San Diego, California and is a privately held company. For more information about K2, its people and products, please visit www.k2ins.com.
About Equity Partners
Lee Equity Partners is a New York-based private equity firm that partners with successful management teams to build companies with strong growth potential. Lee Equity targets equity investments of $50 million to $100 million in middle-market control buyouts and growth capital financings in companies with enterprise values of $100 million to $500 million that are located primarily in the United States. The firm invests in a range of industries where the team has deep relationships developed over decades, including business services, financial services, and healthcare services. For more information, please visit www.LeeEquity.com.
About Hudson Structured Capital Management Ltd.
Hudson Structured Capital Management Ltd. – doing its re/insurance business as HSCM Bermuda Management Company - is an asset manager focused on alternative investments seeking mezzanine level returns. HSCM focuses on the Re/Insurance and Transportation sectors. HSCM launched in 2016, and as of January 1, 2021 had more than $3.0 billion in assets under management and committed capital. HSCM focuses on core economic sectors that are likely to outgrow global GDP, offer low correlations with broader markets, and are experiencing a shift from balance sheet and to market financing. For more information, please visit www.hscm.com.
Media Contact: Nathan Hunter firstname.lastname@example.org 858-866-8967
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SOURCE K2 Insurance Services, LLC
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