FM Confirms Acquisition of Velocity Specialty Insurance Company
Deal News | Jan 08, 2025 | Re-Insurance News
FM, a prominent commercial property insurer, has announced its acquisition of Velocity Specialty Insurance Company (VSIC), part of the larger $525 million deal where Ryan Specialty is acquiring Velocity Risk Underwriters. This move highlights FM's strategic intent to expand into the excess and surplus (E&S) lines market, which addresses risks traditional insurers might avoid. With secondary perils and emerging risks on the rise, FM is positioning itself to better serve its clients with more comprehensive risk solutions. Malcolm Roberts, FM's Chairman and CEO, emphasizes how VSIC's expertise complements FM’s mission and how this acquisition aims to broaden its product suite. The deal is set to close in the first half of 2025, reinforcing FM's stronghold in the global commercial property insurance sector.
Sectors
- Insurance
- Financial Services
Geography
- United States – The entities involved, FM and VSIC, are primarily operating within the U.S. market, a major hub for the insurance industry.
Industry
- Insurance – The article discusses the acquisition within the insurance sector, specifically focusing on excess and surplus (E&S) lines.
- Financial Services – The acquisition activity involves significant financial investment and strategic alignment within the financial services industry.
Financials
- $525 million – The amount Ryan Specialty paid to acquire Velocity Risk Underwriters as part of the larger acquisition deal.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| FM | Acquirer | Company | A commercial property insurer seeking to expand its offerings in the E&S insurance market through the acquisition of VSIC. |
| Velocity Specialty Insurance Company (VSIC) | Target Company | Company | A wholly owned E&S insurance carrier of Velocity, acquired by FM to enhance its risk management capabilities. |
| Ryan Specialty | Bidding Company | Company | The company acquiring Velocity Risk Underwriters for $525 million, within which VSIC forms part of FM's acquisition. |
| Malcolm Roberts | Chairman and CEO of FM | Person | Key executive leader driving FM's strategic acquisition of VSIC to bolster insurance offerings. |