ASIC enters into strategic capital partnership with Veritex Bank

Dallas-domiciled surplus lines insurance carrier, AM Specialty Insurance Company (ASIC), has entered a strategic capital partnership with Veritex Bank by obtaining a $20 million senior secured loan facility through a private placement with Veritex Community Bank.

In the initial phase of the senior secured loan facility, the agreement includes a multimillion-dollar capital provision to bolster ASIC’s surplus and position the company for continued growth in the specialty insurance marketplace.

Additionally, the capital partnership will provide increased financial flexibility, allowing ASIC to expand its underwriting capacity, and invest in innovative insurance programmes.

ASIC’s focus remains on delivering specialised insurance solutions with an emphasis on low-limit, non-catastrophic risks, ensuring its partners and clients experience less volatile and more predictable results.

Shevawn Barder, Chief Executive Officer (CEO) of ASIC, commented, “We are excited to enter into this strategic relationship with Veritex Bank. This partnership reflects our commitment to maintaining a strong and resilient business model, enabling us to offer even more stable and predictable risk solutions for the specialty market.

“The longer-term nature of this partnership means that as we continue to achieve our targets, this capital infusion will continue to empower us to better serve the market and expand our product offerings.”

Paul Haney, Executive Vice President, Managing Director of Insurance Banking at Veritex Bank, added, “We are thrilled to partner with AM Specialty Insurance Company, a leader in the excess and surplus market.

“This transaction underscores our deep commitment to the insurance industry, and we look forward to supporting AM Specialty as they continue to grow and innovate. Our team provides tailored financial solutions that meet the unique needs of companies like AM Specialty, and this partnership highlights our ongoing focus on fostering long-term relationships within the sector.”

The transaction was facilitated by Stonybrook Capital, ASIC’s exclusive financial advisor, advising on connection with the debt issuance.

Barder further added, “We are thrilled to have secured this capital partnership with Veritex Bank, which will help us to strengthen our financial position and fuel our future growth.

“This transaction, expertly advised by Stonybrook, is a key step in our long-term strategy to expand our capabilities and better serve our partners and clients in the specialty insurance market.”

Joe Scheerer, CEO, Stonybrook, concluded, “We could not be any more pleased to have served as ASIC’s advisor on this very important transaction. ASIC is a fantastic company and is growing rapidly. Stonybrook is proud to be their advisor on this and many more to come.”

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