Crestwell Underwriters, LLC, a newly established managing general agent, has begun operations with capital backing from Bain Capital.
The company will focus on delivering insurance solutions for the commercial residential sector, targeting property owners, boards of directors, and property managers overseeing condominium associations in Florida.
At its launch, Crestwell will offer admitted, property-only insurance products specifically for Florida-based condominium associations. The company’s approach is centered on data-driven underwriting and tailored coverage options.
Crestwell will also participate in the assumption of a portfolio of policies from Citizens Property Insurance Company, Florida’s state-backed insurer.
Kathy Cody (pictured above) serves as chief executive officer, while Paul DiFrancesco takes the role of chief underwriting officer. Both executives have more than 30 years of experience in the insurance industry, with backgrounds in property underwriting and leadership roles in the Florida market. Cody was previously CEO of Orchid Insurance, and DiFrancesco most recently led commercial lines at GeoVera.
“Florida’s unique market dynamics have created an incredible advantage to launch Crestwell and provide indispensable AM Best A- rated private insurance capacity to Florida’s commercial residential space,” Cody said.
She added that established carriers in the state face legacy issues that limit their ability to adapt, while Crestwell aims to leverage underwriting experience to offer tailored coverage and manage both Citizens depopulation and open market competition.
Bain Capital’s involvement in Crestwell is part of a broader strategy to expand its presence in the insurance sector. The private equity firm has recently pursued a series of strategic investments and partnerships in the industry, including a multi-billion-dollar investment in Acrisure and an $825 million deal for a 9.9% stake in Lincoln Financial Group.
However, this expansion is not without controversy. Bain Capital Insurance, along with other entities, has recently faced legal scrutiny in Florida regarding alleged unauthorized enrollment and switching of Affordable Care Act market plans.
The Florida condominium association insurance market has seen increased activity from managing general agents.
Coastal Insurance Underwriters, another MGA in the sector, recently formed a partnership with Superior Specialty Insurance Company, a State National Insurance Company surplus lines insurer rated A (Excellent) by AM Best.
“The highly complex nature of Florida’s commercial residential market creates the opportunity for a talented and experienced team of underwriters, like the one that has been assembled at Crestwell, to generate attractive and sustainable underwriting profits over the long-term,” Matt Popoli, partner at Bain Capital said.
Emerald Bay Risk Solutions will act as an initial capacity partner for Crestwell through its admitted carrier, Mainsail Insurance Company, which holds an A- (Excellent) rating from AM Best.
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