ReAlign completes $7.5mn capital raise to fuel growth plans

ReAlign Insurance Holdings’ surplus lines carrier Summit Specialty Insurance Company has completed a $7.5mn capital raise that will support the program-focused platform’s growth plans.

The raise was secured via a surplus note with Owatonna, Minnesota-based Federated Life Insurance Company, an affiliate of AM Best A+ rated Federated Mutual Insurance Company.

Summit Specialty was advised on the transaction by boutique capital advisory and reinsurance intermediary Stonybrook Capital.

In a statement, Stonybrook said the newly completed surplus note “gives ReAlign and its insurance companies, including Summit Specialty, the ability to continue to further expand into profitable specialty P&C programs”.

ReAlign unveiled Summit Specialty in October 2020. The Nebraska-domiciled operation secured an A rating from AM Best in January 2021, and is now licensed to write E&S business in 50 states.

According to statutory filings reported by S&P Capital IQ, Summit Specialty generated $32.2mn of net premiums written in 2021. Its capital and surplus at year-end 2021 was $108.6mn.

Summit Specialty is led by former Ironshore and AIG specialty casualty executive Timothy McAuliffe, who also heads up ReAlign’s insurance operations.

Alongside Summit Specialty, ReAlign’s insurance businesses include National Summit Insurance Company, formerly known as National Lloyds, and American Summit. ReAlign acquired the two entities from Align Financial in July 2020.

Talking to The Insurer in November, McAuliffe said ReAlign expected its carrier subsidiaries to substantially grow their collective premium volume in 2022, supported by a pipeline of deals that will double the number of programs in its portfolio.

McAuliffe at the time said ReAlign already has five programs on its books – its initial homeowners and manufactured home offering, and four others focused on umbrella/excess, California earthquake, builders’ risk and commercial auto that it acquired through the purchase of National Lloyds and American Summit.