Gallatin Point investing $1.25B in American Family's TRUE

Gallatin Point Capital LLC will acquire a majority stake in the attorney-in-fact for Trusted Resource Underwriters Exchange (TRUE), investing over $1.25 billion.

The target is a reciprocal insurer established by American Family Insurance Group in 2020 to serve homeowners in storm-prone regions of Florida and other parts of the US.

Gallatin Point said the investment provides underwriting capacity in Florida at a "crucial time" and allows TRUE to strategically expand its footprint nationally. TRUE will utilize a partnership distribution model through new and existing partnerships.

"The regulatory changes in Florida present a unique opportunity for us to contribute to the stability of the market and provide crucial support to homeowners in the region," said Matthew Botein, co-founder and managing partner of Gallatin Point, expressing confidence "in the prospect of TRUE supporting homeowners as a fully national insurance company over time."

American Family will remain a minority owner in the attorney-in-fact and continue providing distribution and client services such as claims handling and call center support. The transaction closed Dec. 31, 2023.

Howden Tiger Capital Markets & Advisory was financial adviser and Kirkland & Ellis LLP was legal counsel to Gallatin Point. Willkie Farr and Gallagher LLP was legal counsel to American Family.