August 3, 2021

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Truist/CRC Adds Major Wholesale Insurance Clout with Constellation Acquisition

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Truist Insurance Holdings and its wholesale insurance subsidiary CRC Group have closed on the acquisition of Constellation Affiliated Partners, an insurance distribution platform operating seven managing general agents (MGAs) and program managers.

The transaction, first announced in May, will add approximately $160 million of annual revenue to Truist Insurance Holdings’ wholesale division. Truist acquired Constellation from RedBird Capital Partners. Financial terms were not disclosed

The addition of Constellation Affiliated Partners more than doubles the size of the premium placement of CRC Group’s Specialty Programs Division and creates one of the largest program managers in North America. CRC Group’s new Specialty Programs Division now places more than $2.4 billion in premium across more than 10 industry and specialty segments.

The Constellation Affiliated Partners businesses will be combined into Truist Insurance Holdings’ CRC Group.

The seven MGAs that are part of Constellation are Allstar Financial Group, Norman Spencer, American Team Managers Insurance Services, RMA, Trinity Transportation Solutions, Coastal Insurance Underwriters and InsureTrust.

Bill Goldstein, who joined CRC Group from Constellation, will serve as CEO of CRC Group’s Specialty Programs Division.

Additionally, Nicholas Bozzo from CRC Programs and Brian Norman from Constellation have been appointed co-presidents of the Specialty Programs Division.

“We see the combined programs platform as a growth engine for the future,” said Goldstein. “We will be bringing new programs and products to market, expanding capacity relationships, and continuing our focus on and commitment to data, analytics, and technology.

He said CRC will also continue to seek strategic acquisitions.

“The world of risk is getting more complex, and both our customers and capital partners are seeking specialists to underwrite and distribute insurance solutions,” said Dave Obenauer, CEO of CRC Group. “Our new expanded Specialty Programs Division will help us meet that growing need in today’s difficult insurance marketplace.”

This transaction is CRC Group’s eighth acquisition in the last 18 months.

Truist Insurance Holdings operates more than 240 offices through its subsidiaries: McGriff Insurance Services, Inc.; CRC Insurance Services; Crump Life Insurance Services; AmRisc; and its premium finance companies (AFCO Credit Corp., Prime Rate Premium Finance Corp., and CAFO).

RBC Capital Markets and Truist Securities served as financial advisors, and Willkie Farr & Gallagher served as legal counsel to Truist in this transaction. Evercore served as financial advisor, and Fried, Frank, Harris, Shriver & Jacobson served as legal counsel to Constellation Affiliated Partners.

Topics
Mergers
Insurance Wholesale

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