The Baldwin Group signs $110m note purchase agreement for insurance exchange

The Baldwin Group’s reciprocal insurance exchange, Builder Reciprocal Insurance Exchange (BRIE), has entered into a note purchase agreement to raise $110 million of surplus financing through the issuance of surplus debentures (the notes).

BRIE, Baldwin’s soon-to-launch reciprocal insurance exchange, will reportedly focus on providing capacity for the firm’s builder-sourced homeowners book of business, enabling Baldwin’s affiliated managing general agency (MSI) to accelerate the transition from its existing carrier partner.

$95 million of the notes will be funded by an affiliate of Gallatin Point Capital LLC, with the remainder funded by affiliates of Baldwin.

Baldwin has suggested that the closing of the note purchase agreement and funding of the notes is expected to occur in the second quarter of 2025, subject to customary closing conditions, including applicable regulatory approvals.

“An affiliate of Baldwin will serve as the attorney-in-fact (AIF) of BRIE. Baldwin does not expect to consolidate BRIE’s or the AIF’s financial results. As such, the Notes would not represent additional debt of Baldwin or its affiliates,” Baldwin explained.

Insurance Advisory Partners LLC acted as exclusive financial advisor to Baldwin and placement agent for the notes.

Meanwhile, Troutman Pepper Locke LLP served as legal counsel to Baldwin, and Morgan, Lewis & Bockius LLP served as legal counsel to Gallatin Point.

Trevor Baldwin, Chief Executive Officer of The Baldwin Group, commented, “We are extremely excited about the signing of the note purchase agreement with Gallatin Point, a leading financial services investor, which will enable the successful launch of BRIE with $110 million in committed surplus notes.

“Launching BRIE represents a meaningful milestone in our continued journey to vertically integrate across the value chain and bring innovative, third-party risk capital solutions to market in support of more efficient risk transfer outcomes for our clients.”

Matthew Botein, Co-Founder and Managing Partner of Gallatin Point, added, “We are thrilled to be partnering with Baldwin on the launch of BRIE. Baldwin’s growth over the past decade has been remarkable, and we are excited to be able to support them through our capital investment as they continue to create innovative insurance solutions for their clients and further grow their builder-sourced homeowners book of business.”

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