M&A rebound brings alternatives for transaction legal responsibility insurance coverage

A bunch of transaction legal responsibility insurance coverage (TLI) specialists has launched Sands Level Threat, a managing basic agent (MGA) that caters to purchasers navigating threat exposures arising from mergers and acquisitions (M&A), tax therapies, and litigation.

CEO Dennis Kearns (pictured) stated the MGA’s launch comes at a turning level for M&A.

“There was somewhat little bit of the market slowdown in 2023, however our hope is that there’s a rebound,” Kearns advised Insurance coverage Enterprise.

“Our need is to realize market timing to current these alternatives. We really feel very strongly in regards to the market, significantly as we see the primary quarter and second quarter coming into form.”

MGA Sands Level launched with personal fairness backing

Kearns, who based and operated the transaction options program at DUAL North America, has assembled a staff of extremely profitable and skilled professionals, backed by Avesi Companions to higher service transaction dangers within the M&A market.

The management staff at Sands Level has intensive expertise in TLI, collectively underwriting hundreds of transactions involving strategic and personal fairness consumers and sellers throughout numerous industries. They embrace Patrick Darragh, govt vice chairman; Dan Simnowitz, govt vice chairman; and JoAnna Conte, chief working officer.

Kearns boasts over 25 years of experience in underwriting, product improvement, coverage drafting, and claims. Throughout his tenure, the transaction options program at DUAL achieved a complete gross written premium exceeding $600 million.

“We’re seeking to construct a chance within the insurance coverage house, and we had a imaginative and prescient for what an MGA would appear like within the house that gives alternatives for monetary strains and for conventional property-casualty strains,” Kearns stated.

He stated that “alignment” with Stamford, CT-based Avesi Companions helped seal the chance.

“Having them as an funding associate allowed us to convey this imaginative and prescient to actuality as a result of they share the identical viewpoints on how we might run [an MGA]. A associate that desires to create the identical enterprise mannequin makes our relationship very robust and offers us a variety of confidence going ahead,” Kearns added. “It made us each see that this can be a good alternative and match for each groups.”

What’s forward for Sands Level?

Sands Level’s expertise has excelled in serving small- to middle-market purchasers, in keeping with Kearns, which is the place the MGA’s “candy spot” will lie.

“The important thing differentiator for us as a staff is ensuring our service element is greatest in school,” the CEO stated. “As underwriters, we all know the right way to service the wants of that buyer base. It’s additionally an area that acknowledges our underwriting expertise and our capabilities.”

Having launched in the beginning of the yr, Sands Level will spend the following few months constructing underwriting alternatives and carving its place out there.

Kearns stated the purpose is “to be acknowledged in our house as having an providing that’s engaging to our buyer base, that’s engaging to future expertise and to insurance coverage firms.”

“I feel a profitable yr sees us having a major providing for transactional legal responsibility, but in addition being recognized as an rising MGA house providing alternatives for future underwriters who share related imaginative and prescient,” he advised Insurance coverage Enterprise. “We additionally wish to be seen as a trusted associate for insurance coverage firms that wish to think about us as an agent.”

Past transaction legal responsibility, Sands Level additionally intends to develop its platform to different specialised insurance coverage strains.

“Transactional legal responsibility is actually our flagship, however the purpose is to construct a full-service MGA,” Kearns stated.

“We wish to be the place the place we are able to entice the suitable expertise and, from an underwriting perspective, the place the place we are able to entice potential insurer companions. We wish to have a chance to think about different strains of insurance coverage, to spherical out an providing that’s dedicated to property and casualty alternatives in addition to monetary strains.”

What are your ideas on Sands Level Threat and the potential rebound of the M&A market this yr? Please share them within the feedback.