The transaction closed on December 31st, 2023, with post-transaction transitions expected to be seamless for current TRUE customers and employees.
Under the agreement, funds managed by Gallatin Point will acquire a majority stake in the attorney-in-fact for Trusted Resource Underwriters Exchange (TRUE). Established by American Family in 2020, TRUE operates as a reciprocal insurer, catering to homeowners in storm-prone areas of Florida and other parts of the country.
Gallatin Point’s investment of over US$1.25 billion into TRUE marks a substantial commitment to the venture, with American Family retaining a minority ownership role. The insurer will continue providing crucial services such as distribution, claims handling, and call centre support.
The injected funds will play a pivotal role for TRUE, enabling it to bolster underwriting capacity in Florida during a critical period and strategically expand its national presence. TRUE aims to leverage the partnership distribution model, fostering new and existing collaborations.
Matthew Botein, Co-Founder and Managing Partner at Gallatin Point, expressed enthusiasm about joining TRUE’s journey during this transformative growth phase. He said: “We are excited to be part of TRUE’s journey as it enters a new phase of growth, and we believe that our investment aligns perfectly with TRUE’s long-term vision and Gallatin Point’s commitment to the insurance sector. The regulatory changes in Florida present a unique opportunity for us to contribute to the stability of the market and provide crucial support to homeowners in the region.“
With TRUE’s leadership team, combined with the strength of American Family’s industry expertise and our capital investment, we are confident in the prospect of TRUE supporting homeowners as a fully national insurance company over time.”
Gallatin Point has assembled a team of seasoned professionals from the insurance industry to lead this initiative. This team includes Fabian Fondriest, the former President of American Family Direct and former Chairman and CEO of Homesite Insurance, who will take on the role of TRUE’s Executive Chairman. Additionally, Tony Scavongelli, formerly the Head of Partnerships at American Family, is set to assume the position of TRUE’s incoming Chief Executive Officer.
Michael Lorion, President of American Family Direct and Homesite, said, “This partnership reflects American Family’s commitment to providing high-quality insurance options for homeowners nationwide. The ongoing relationship between American Family and TRUE will enable us to serve more customers in catastrophe-exposed regions.”
Scavongelli added, “I am honoured to lead TRUE in this exciting phase of growth. The support from Gallatin Point and their investors is a testament to the confidence in our collective vision and capabilities. We are focused on delivering reliable protection to homeowners and expanding our footprint nationally.”
