Overview of Transaction
- Headquartered in Tennessee, the Appalachian Underwriters family of companies collectively form one of the largest end-to-end specialty insurance distribution and TPA platforms in the country. The Firm underwrites and sells Workers’ Compensation, Commercial Specialty, Personal Lines, and Transactional Wholesale through custom programs, and underwriting facilities. Distribution is on a national basis and supported by numerous domestic carriers and Lloyd’s of London.
- After assessing a variety of strategies, Appalachian Underwriters decided to partner with Acrisure, a top-10 global insurance brokerage based out of Grand Rapids, Michigan.
Significance of Transaction
- The acquisition of Appalachian Underwriters expands Acrisure’s technology capabilities and adds meaningful scale to its distribution footprint.
- The partnership will leverage Appalachian’s deep and broad claims information with Acrisure’s AI strategy to further model, underwrite and package Acrisure’s risk premium for distribution across multiple markets. With investments in machine learning, and data analytics, Acrisure is combining technology and the highest level of tech talent to disrupt the insurance value chain.
- Following the closing of the transaction, the Appalachian family of companies will have strategic new distribution options for its clients, technology, and access to a broad distribution network – paving a long runway for expansion.
Mystic Capital’s Role
- Mystic Capital was engaged by Appalachian Underwriters and its Board of Directors to reposition the Company for the next chapter of its growth. Collectively, several strategies were evaluated before concluding with a sale to Acrisure.
- Having guided Appalachian and Acrisure on previous transactions, Mystic Capital has a long history advising both executive teams to highly favorable outcomes and underscores Mystic’s credo of fostering long-term, value-creating relationships built on trust and results.