Bain Capital Insurance coverage has introduced a capital funding in 1970 Group, a New York-based specialised threat financing supplier to the insurance coverage business.
1970 Group gives experience in structured financing, credit score help and threat administration. The corporate pioneered the idea of Insurance coverage Collateral Funding (ICF), which permits firms to switch their insurance coverage collateral necessities off their stability sheets, giving them extra capital to deploy to enterprise operations and funding alternatives.
Monetary phrases of the Bain Capital funding weren’t disclosed.
1970 Group’s insurance coverage, funding, and authorized specialists work with insurance coverage consumers and threat managers, insurance coverage brokers, carriers, and banks to ship threat financing and threat administration companies to their firms advert purchasers.
The corporate says ICF was created to assist firms using loss delicate staff’ compensation, basic legal responsibility, business auto, and medical skilled legal responsibility insurance coverage packages cope with collateral necessities that may impair stability sheets The corporate supplies an alternative choice to holding money in escrow or signing letters of credit score with banks; each of which it says can considerably scale back the quantity of working capital obtainable to an organization.
“The chance for companies may be huge, as collateral necessities can usually tie up a major proportion of an organization’s obtainable financing traces,” the agency states on its web site.
Bain Capital Insurance coverage is the devoted insurance coverage investing enterprise of Bain Capital, a world non-public funding agency with roughly $185 billion below administration.
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