Revau expands with addition of two Texas MGAs

Revau has expanded with a deal to merge Texas-based managing general agents (MGAs) Brazos Specialty Risk Insurance and Twenty Mile Insurance Services into its network.

Financial terms of the cash and equity deal remain undisclosed.

The integration is said to enhance Revau's foothold in the specialty insurance sector in North America.

This marks the insurer's eighth transaction and the largest since its partnership with investment firm Novacap in 2020.

Brazos is a provider of specialty trucking insurance, while Twenty Mile offers liability solutions for the construction industry.

Revau's contribution includes its data-analytics capabilities, capital base and digital infrastructure, which are anticipated to streamline product and service delivery.

By leveraging the underwriting expertise of Brazos and Twenty Mile with Revau's analytics platform, the combined group aims to establish an “end-to-end” data capability.

This platform will enable the identification of patterns in risk, customer behaviour and market trends to facilitate decision-making.

Revau said that the leadership of the acquired entities, including Brazos president Tom Spitalny and Christopher Polk, Twenty Mile president and the CEO of both companies, will remain with the combined group.

They, along with their teams, are already engaged in integration efforts across various business functions including underwriting, claims handling and technology.

The leadership teams from Brazos and Twenty Mile have become shareholders in Revau.

Revau secured legal counsel from Fasken Martineau DuMoulin and Willkie Farr & Gallagher, with Howden Capital Markets & Advisory serving as the financial advisor to Brazos and Twenty Mile.

Covington Burling offered legal advice to Brazos and Twenty Mile.

Revau president and CEO Jean-François Raymond said: "This is an incredible milestone for Revau, marking our evolution from a small regional MGA with ambitious goals to an industry leader expanding beyond Canada.

“We are thrilled to collaborate with such an experienced and talented group, building a strong partnership model that delivers value for all stakeholders and sets the stage for future success."

In 2023, Revau purchased the surety division from Canadian operator Echelon Insurance.

"Revau expands with addition of two Texas MGAs " was originally created and published by Life Insurance International, a GlobalData owned brand.

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