Novel Financial Holdings, a diversified insurance underwriting and services company, has received an investment from private equity firm Crestview Partners. The investment will support Novel’s continued expansion across insurance underwriting and services and broaden its ownership base. The financial terms of the transaction were not disclosed.
Novel operates through a combination of policyholder-owned reciprocal exchanges and traditional stock insurance companies. Its business model combines fee-based revenue from insurance management and attorney-in-fact entities with underwriting results from its owned insurance carriers.
The company plans to continue partnering with established underwriting organizations including SageSure and other managing general agents. It also aims to develop its own individual risk underwriting capabilities and expand into additional specialty and casualty insurance markets.
Rob Bredahl, Chief Executive Officer of Novel, said, “As we continue to scale and diversify Novel, we are excited to partner with Crestview, a firm that has been investing across insurance and reinsurance for two decades and has backed insurance businesses through full market cycles. Crestview brings not only flexible capital but also meaningful sector expertise and relationships that will support our growth for years to come.”
Dan Kilpatrick, Partner and Head of Financial Services at Crestview noted, “We are thrilled to be partnering with Rob and the terrific team at Novel. We believe Novel has assembled a unique and compelling set of capabilities combining insurance underwriting, reciprocal exchange management, and specialized insurance services that positions it to thrive in today’s fast evolving insurance market. We are excited to help the organization drive further growth.”
Novel’s portfolio includes Forza Insurance Holdings, which owns the attorney-in-fact entities managing SureChoice Underwriters Reciprocal Exchange (SURE) and Elevate Reciprocal Exchange. Its portfolio also includes the GeoVera Nova group of companies, whose insurance entities hold an AM Best “A” (Excellent) rating.
Novel said GeoVera Nova provides a platform for building additional specialty and casualty underwriting teams. Across its businesses, the company currently supports approximately $2 billion in annual gross written premiums.
Crestview Partners, founded in 2004, has invested across financial services, with a focus on insurance and reinsurance. Novel expects to benefit from Crestview’s industry expertise, relationships and capital to support its growth.
Howden Capital Markets & Advisory served as Novel’s exclusive financial advisor on the transaction. Novel is also backed by Flexpoint Ford.
