3 Things – 2021 Retrospective, AF Group Acquisition & Newfront Raises $200M – 04/15/2022

Hello Friends!  We hope everyone is ready to enjoy the Easter and Passover holidays this weekend.  This week we are following AM Best’s 2021 Retrospective, an AF Group Acquisition & Newfront raising $200M.   Here are the three things we learned:


2021 for P/C & L/A Carriers Positive                      

AM Best issued retrospective reports for both P&C and Life carriers and as we knew 2021 was a good year for both groups.  P&C carriers increased their net incomes even in a year where there were near-record catastrophe losses.  Life carriers also increased revenue and net income substantially and had their own challenges to deal with in the COVID mortality environment.  It would seem that there are less headwinds in Life going forward as we emerge from COVID and more individuals are buying life insurance than before.  On the other hand P&C is faced with the potential for more catastrophes from the usual weather events but also war, not to mention the 40-year inflation high.


AF Group Acquires AmeriTrust

We have been watching as carriers and MGAs have been putting themselves on the selling block.  One of those dominos fell this week as AmeriTrust (formerly Meadowbrook) was sold to AF Group bringing together two Michigan-based speciality insurers.  AmeriTrust had once fallen into trouble getting downgraded by AM Best but worked their way back with help of outside investment and is now back above A- with a positive outlook review pending.  We should continue to see these types of deals as the year continues.


Newfront Raises $200M at $2.2B Valuation

Modern insurance brokerage Newfront announced a $200M capital raise this week.  This doubles the amount from their last raise in Oct 2020.  They have the capital to continue their growth trajectory and innovate in the brokerage / distribution space.  They didn’t say this publicly but they will probably be eyeing acquisitions to grow.  What targets could they be after?

Thank you for following us, we appreciate your feedback and continued support.  Stay tuned for more info to come.  Until next week… stay safe, stay productive!