New York-based investment firm Altaris said it has agreed to acquire the remaining 53% of stock in specialty insurance company Trean Insurance Group, Inc. that it does not already own for $6.15 in cash per share. The transaction will result in Trean becoming a private firm and its common stock (TIG) will no longer be traded on the NASDAQ.
The transaction, which implies total equity value for the company of approximately $316 million, is expected to close during the first half of 2023.
Trean underwrites workers’ compensation and specialty casualty insurance products through its producers, program partners and its owned managing general agencies. Trean also provides its program partners with a variety of services including issuing carrier services, claims administration and reinsurance brokerage. Trean is licensed to write business across 49 states and the District of Columbia.
Following the closing of the transaction, Julie Baron will remain president and chief executive officer of Trean and Andrew O’Brien, the founder of Trean and executive chairman of the board, will continue to serve on the board.
The company is expected to maintain its headquarters in Wayzata, Minnesota.
Trean Insurance Group is the ultimate parent of the following companies:
. provides workers’ compensation insurance for fire and emergency services operations through independent retail agents.
o. is a Utah-domiciled stock insurer licensed in 39 states. American Liberty, through an affiliated managing general agent, offers workers’ compensation and employers’ liability insurance produced through independent retail and wholesale agencies.
is a claims third-party administrator providing workers’ compensation and employers’ liability claims handling services for affiliated and unaffiliated insurers. Headquartered in Ontario, Benchmark Administrators specializes in workers’ compensation and employers’ liability claims.
. is a multi-line stock insurer admitted in 49 states and the District of Columbia. Benchmark is domiciled in Kansas and commercially domiciled in California. Benchmark provides admitted insurance products and services focused on specialty casualty lines as a full-service issuing carrier for insurance organizations. \
As a result of the proposed acquisition, AM Best said it anticipates that the Long-Term Issuer Credit Rating (Long-Term ICR) of “bbb” (Good) of Trean will be remain unchanged. Additionally, the Financial Strength Rating of A (Excellent) and Long-Term ICR of “a” (Excellent) of Benchmark Insurance Group members will also remain unchanged. AM Best said it expects that BIG’s risk-adjusted capital, financial leverage, operating performance and reserve adequacy measures will remain within acceptable ranges to support its current ratings.
Topics Mergers & Acquisitions Liability
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