In a recent
Insurance Business reader poll, a vast majority of respondents said that when faced with the choice to sell their business or remain independent, they would likely choose the former.
Trisura Guarantee Insurance Company, a specialty lines carrier with over $100 million in annual revenue, appears to be an anomaly to this popular opinion. Although the insurer only started from scratch a decade ago, it has already become the target of more than two dozen potential acquirers.
“We have had over 30 inquiries from both insurers and private equity as to whether Trisura would possibly be for sale,” said Trisura CEO Mike George.
George attributes this heightened interest to favorable market conditions, as well as the insurer’s success in differentiating itself from competitors.
“I believe this is due to the mergers and acquisition frenzy that has gripped the insurance world on a global scale, and the fact that we are attractive because we are relatively modest in size, highly specialized in what we do, with a great broker distribution network and a fantastic team,” George said.
While he admits that the industry can be “uber-competitive and changing rapidly,” the leadership team declined every proposal out of confidence that their best days remain ahead. In particular, it believes Trisura is “extremely well-positioned to capitalize upon opportunities in the future.”
Moreover, it may lose its biggest asset if it did ever consolidate with a larger firm.
“Plus, we do not want to lose what we feel is a huge competitive advantage – our culture,” George said.
For now, the insurer hopes to grow by expanding its product and service line, but George says no options are off the table just yet.
“In fact, we may actually look to become the hunter, and will consider acquisition opportunities ourselves when they present themselves and make sense to us,” he said.
