M&A rebound brings alternatives for transaction legal responsibility insurance coverage

A gaggle of transaction legal responsibility insurance coverage (TLI) specialists has launched Sands Level Threat, a managing basic agent (MGA) that caters to purchasers navigating danger exposures arising from mergers and acquisitions (M&A), tax therapies, and litigation.

CEO Dennis Kearns (pictured) mentioned the MGA’s launch comes at a turning level for M&A.

“There was just a little little bit of the market slowdown in 2023, however our hope is that there’s a rebound,” Kearns informed Insurance coverage Enterprise.

“Our want is to realize market timing to current these alternatives. We really feel very strongly concerning the market, notably as we see the primary quarter and second quarter coming into form.”

MGA Sands Level launched with non-public fairness backing

Kearns, who based and operated the transaction options program at DUAL North America, has assembled a group of extremely profitable and skilled professionals, backed by Avesi Companions to raised service transaction dangers within the M&A market.

The management group at Sands Level has in depth expertise in TLI, collectively underwriting hundreds of transactions involving strategic and personal fairness patrons and sellers throughout varied industries. They embrace Patrick Darragh, govt vp; Dan Simnowitz, govt vp; and JoAnna Conte, chief working officer.

Kearns boasts over 25 years of experience in underwriting, product improvement, coverage drafting, and claims. Throughout his tenure, the transaction options program at DUAL achieved a complete gross written premium exceeding $600 million.

“We’re trying to construct a possibility within the insurance coverage house, and we had a imaginative and prescient for what an MGA would appear to be within the house that gives alternatives for monetary traces and for conventional property-casualty traces,” Kearns mentioned.

He mentioned that “alignment” with Stamford, CT-based Avesi Companions helped seal the chance.

“Having them as an funding companion allowed us to carry this imaginative and prescient to actuality as a result of they share the identical viewpoints on how we might run [an MGA]. A companion that wishes to create the identical enterprise mannequin makes our relationship very sturdy and provides us lots of confidence going ahead,” Kearns added. “It made us each see that this can be a good alternative and a superb match for each groups.”

What’s forward for Sands Level?

Sands Level’s expertise has excelled in serving small- to middle-market purchasers, in response to Kearns, which is the place the MGA’s “candy spot” will lie.

“The important thing differentiator for us as a group is ensuring our service part is greatest at school,” the CEO mentioned. “As underwriters, we all know tips on how to service the wants of that buyer base. It’s additionally an area that acknowledges our underwriting expertise and our capabilities.”

Having launched at first of the 12 months, Sands Level will spend the following few months constructing underwriting alternatives and carving its place available in the market.

Kearns mentioned the objective is “to be acknowledged in our house as having an providing that’s enticing to our buyer base, that’s enticing to future expertise and to insurance coverage firms.”

“I feel a profitable 12 months sees us having a big providing for transactional legal responsibility, but in addition being recognized as an rising MGA house providing alternatives for future underwriters who share comparable imaginative and prescient,” he informed Insurance coverage Enterprise. “We additionally wish to be seen as a trusted companion for insurance coverage firms that wish to think about us as an agent.”

Past transaction legal responsibility, Sands Level additionally intends to increase its platform to different specialised insurance coverage traces.

“Transactional legal responsibility is definitely our flagship, however the objective is to construct a full-service MGA,” Kearns mentioned.

“We wish to be the place the place we are able to appeal to the suitable expertise and, from an underwriting perspective, the place the place we are able to appeal to potential insurer companions. We wish to have a possibility to think about different traces of insurance coverage, to spherical out an providing that’s dedicated to property and casualty alternatives in addition to monetary traces.”

What are your ideas on Sands Level Threat and the potential rebound of the M&A market this 12 months? Please share them within the feedback.