Orchid Underwriters Acquires Coastal Agents Alliance
Backed by Gryphon Investors, Orchid and Coastal to Offer Comprehensive Suite of Excess & Surplus Insurance
VERO BEACH, FL — May 5, 2015 – Orchid Underwriters Agency, LLC (Orchid), a leading specialty underwriter of excess & surplus (E&S) insurance focusing on coastal properties, today announced that it has acquired Coastal Agents Alliance (Coastal), a market leading managing general agent (MGA) based in West Atlantic City, New Jersey. Coastal specializes in catastrophic coastal exposed E&S homeowners’ solutions and currently writes in the Northeast and Mid-Atlantic. Terms of the transaction were not disclosed. Orchid was acquired by Gryphon Investors, a San Francisco-based middle market private equity firm, in November 2014.
The acquisition of Coastal expands Orchid’s reach into attractive markets in the Northeast and allows the companies to share best practices in meeting the needs of their customers and carriers. Coastal’s geographic presence is highly complementary with Orchid, which already has a well-established position throughout the South and Gulf Coast regions of the U.S. Tim Byrne will remain President of Coastal and will have a significant ownership stake in Orchid. Byrne will also serve in a Senior Executive capacity for Orchid. All other members of Coastal’s management team will remain with the company, which will continue to be based in West Atlantic City.
“I am thrilled that Orchid is joining forces with Coastal Agents Alliance and the management team led by Tim Byrne,” said Orchid President Brad Emmons. “Coastal has created a strong and loyal following among its clients throughout the Northeast and Mid-Atlantic. Like Orchid, Coastal’s devotion to service, proprietary coastal E&S product solutions, and commitment to relationships is top notch, and we look forward to the benefits this complementary relationship will bring.”
Mr. Byrne added, “I am excited to be part of the Orchid Executive Management Committee. I have known Brad for several years and Orchid Chairman Ken LeStrange for over two decades. Our management team, which also includes Nicole O’Brien and Tim Byrne, Jr., has worked hard to build Coastal Agents into a premier company in the states where we do business. We value the opportunity to work with the Orchid team to enhance the Company’s market leadership position throughout the United States and beyond.”
Mr. LeStrange commented that, “The acquisition of Coastal Agents Alliance is an important step in the growth and geographic expansion of Orchid. I am particularly pleased to have Tim Byrne Sr. join our executive team. He is a well-known and respected leader in the insurance industry and will play a key role in implementing our plans for the future.”
About Orchid Underwriters
Founded in 1998 and based in Vero Beach, FL, Orchid Underwriters specializes in providing specialty insurance products for homeowners and other difficult-to-insure properties throughout the United States and the Caribbean. The Company’s comprehensive product offering provides customers with a “one-stop-shop” for homeowners and condominium property insurance, including umbrella policies, wind and wind only, general and excess flood, earthquake, builder’s risk and others. Orchid only represents well-known A.M. Best A-rated insurance carriers and is a market leader with over $16 billion of insurance in-force.
About Gryphon Investors
Based in San Francisco, Gryphon Investors (www.gryphoninvestors.com) is a leading private equity (PE) firm focused on profitably growing and competitively enhancing middle-market companies in partnership with experienced management. For numerous consecutive quarters and years, Gryphon has been ranked in Preqin’s prestigious quarterly PE report as one of North America’s top-decile firms based on consistency of strong investment returns. With approximately $1.4 billion of cumulative equity commitments, the firm has an extensive track record of leading equity investments of $35 to $100 million per portfolio company with sales ranging from approximately $50 to $400 million. Gryphon prioritizes investment opportunities where it can form proactive partnerships with owners and executives to build leading companies, utilizing Gryphon’s capital, specialized professional resources and operational expertise.
Owen Blicksilver Public Relations