Aquiline substantially contributed in building our business. Unlike other private equity firms, I always felt like I was talking to my partners. Eleven years post IPO and I still speak with Chris Watson and Jeff Greenberg regularly.

Aquiline has a good blend of senior operating partners who had deep experience in our industry, coupled with smart financial minds and expertise. They also focused on not just the right financial outcome for them, but the right ultimate outcome for the management team and wider staff. 

I am not sure if another private equity firm would have had the capability to buy ERS from IAG back in 2013. It was only the combination of Aquiline's deep sector knowledge, combined with their partners' experience of actually running companies, that enabled it to get comfortable with the value creation thesis and the relative risk / reward in the investment.

Partnering with a firm that has a focus on, and deep roots in, financial technology is invaluable when transforming a business in a changing environment. Aquiline truly understands the marketplace and the opportunities for value creation and it has been a pleasure to be on this journey with them.

Having spent months researching our space prior to their first call, Aquiline had a very specific plan and theory about what they would like to do to help us recognize greater value. They have done exactly what they said they were going to do, and much more.

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Our private equity strategy is centered around businesses that are well established in their niche but could be much more. We look at the broader financial economy and the plumbing behind it for assets that may not be glamorous but are important. As partners, we let those organizations take a more ambitious tack, supporting aggressive growth initiatives and other paths to equity value creation.

We want partners who draw value from our financial services reach, and look for them in business services, software, and healthcare as well as the financial sector.

The private equity team seeks to invest thematically, looking at industry trends and then zeroing in on niches of interest. 

Investments tend to be $20-200 million, either funded all at once or over time. We move quickly and generally do not shy away from tough carve-outs and other complicated transaction types.

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Our venture team invests in early and growth-stage technology and services companies with transformative potential for insurance and other financial services sectors. Drawing insights from our portfolio companies and much larger financial institutions in our industry network, we look for promising new technologies matched to the industry’s pain points.

We aim to bend the curve, leveraging our relationships to get entrepreneurs in front of the corporate decisionmakers who can bring step changes as potential clients or partners.

The venture team looks at the bottlenecks and inefficiencies experienced by insurers, asset managers, and other traditional financial institutions to understand market needs and corresponding opportunities for emerging fintech, insuretech, and enterprise technology.

Typical investments range from $3-25 million in companies with at least $1 million in annual recurring revenue. ATG can be the first institutional capital or participate in later rounds as a lead or co-lead investor.

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NMBS

ST. LOUIS, Feb. 3, 2021 /PRNewswire/ -- National Medical Billing Services, an industry leading healthcare revenue cycle management company serving the ambulatory surgery center ("ASC") market, today announced it has entered into a strategic partnership with Aquiline Capital Partners, a private investment firm based in New York and London with $5.6 billion in assets under management. Aquiline is committed to investing in technology, analytics and business development, which will provide significant operational and financial value for National Medical's ASC clients while also further accelerating the Company's growth.

Founded in 2003, National Medical provides revenue cycle outsourcing services to ambulatory surgery centers across the nation. The Company's market leadership has been achieved because of its combination of deep industry expertise, proprietary intelligent workflow technologies, best practice processes, and insightful analytics and advice, all of which lead to exceptional financial results for its ASC clients.

"At National Medical, we have always prided ourselves on creating significant financial value for our clients, and we recognize that the ASC market is rapidly evolving and growing because of high acuity procedures migrating to the ASC setting," said Nader Samii, CEO of National Medical. "Given this significant shift in the market, we are thrilled to be partnering with Aquiline because of its experience across healthcare, insurance and technology. Aquiline is the ideal partner to help us accelerate our key growth initiatives, and I look forward to working with them as we chart the next stage in our evolution."

"The team at National Medical has built an impressive business that serves as a trusted advisor helping their clients navigate the increasing complexity of the healthcare system," said Jeff Greenberg, Chairman and CEO of Aquiline Capital Partners. "We are excited to partner with National Medical, where we can employ our experience at the intersection of healthcare and insurance to help the Company continue innovating to further enhance and expand its business and operations."

Cain Brothers, a division of KeyBanc Capital Markets, served as the exclusive financial advisor to National Medical for this transaction and Neal, Gerber & Eisenberg served as legal counsel to the Company. Ropes & Gray LLP served as legal counsel to Aquiline.

About National Medical Billing Services

National Medical Billing Services is a leading provider of revenue cycle outsourcing solutions to the ambulatory surgery center market. National Medical's combination of ASC expertise, analytics, insightful advice, highly skilled and experienced revenue cycle experts, and attention to detail allow the Company to deliver industry leading results for its clients. For more information on National Medical, please visit nationalASCbilling.com. 

About Aquiline Capital Partners LLC

Aquiline Capital Partners, founded in 2005, is a private investment firm based in New York and London investing in businesses across the financial services sector in financial technology, insurance, investment management, business services, credit and healthcare. The firm has $5.6 billion in assets under management as of September 30, 2020. For more information about Aquiline, its investment professionals, and its portfolio companies, please visit aquiline.com.


National Medical Announces Investment from Aquiline Capital Partners

NEWPORT BEACH (January 5, 2021) – SageView Advisory Group (“SageView”), a trusted advisor in retirement planning and wealth management, today announced a strategic investment from Aquiline Capital Partners. Randy Long, SageView Founder and Managing Principal, and Jon Upham, Principal, will retain a significant equity stake and continue to lead the firm.

“This investment provides us with the capital for continued growth in the institutional retirement and wealth management arenas, as well as expanded ownership among our advisors and key associates at SageView,” said Randy Long. “We have created a unique culture that is of great value to us, which made Aquiline the right choice for a capital partner. Aquiline shares in our vision for the future and is committed to independence, our people and technology. Partnering with Aquiline will help us better serve our clients and grow our business for the long-term.”

“The retirement plan consulting industry has continued to transform over recent years, and we have seen incredible opportunities arise. This partnership with Aquiline will help to drive further growth and will benefit our firm and clients. We could not be more excited for the future of SageView,” added Jon Upham.

SageView has over 100 employees and 25 offices in 17 states, with more than $119 billion in assets under advisement as of September 30, 2020. A large number of SageView’s employees will become equity holders as part of this partnership.

Jeff Greenberg, Chairman and Chief Executive Officer of Aquiline Capital Partners, said: “We welcome the opportunity to partner with Randy and Jon and their colleagues as they continue to build SageView, one of the leading retirement-focused RIAs in a consolidating industry. We see a substantial opportunity for SageView to serve its clients as wealth management and retirement services converge, and to expand its financial wellness offering.”

Jefferies served as exclusive financial advisor and Burr Forman, LLP served as legal counsel to SageView during the process. 

Ardea Partners LP served as exclusive financial advisor to Aquiline. Willkie Farr & Gallagher LLP served as legal counsel to Aquiline during the process. Wise Rhino also advised Aquiline.

About SageView Advisory Group

SageView Advisory Group is an SEC Registered Investment Advisory firm (RIA) serving retirement plan sponsors and individuals throughout the United States since 1989. SageView advises on 401(k), 403(b), 457, defined benefit and deferred compensation plans. SageView is headquartered in Newport Beach, California with 25 offices nationwide.

SageView Advisory Group, LLC is a Registered Investment Advisor. Advisory services are only offered to clients or prospective clients where SageView Advisory Group, LLC and its representatives are properly licensed or exempt from licensure. Past performance is no guarantee of future results. No advice may be rendered by SageView Advisory Group, LLC unless a client service agreement is in place.

For more information about SageView, visit www.sageviewadvisory.com or call (800) 814-8742.

About Aquiline Capital Partners LLC

Aquiline Capital Partners, founded in 2005, is a private investment firm based in New York and London investing in businesses across the financial services sector in financial technology, insurance, investment management, business services, credit and healthcare.  The firm has $5.3 billion in assets under management as of December 31, 2019. 

For more information about Aquiline, its investment professionals, and its portfolio companies, please visit: www.aquiline.com.


SageView Engages in Strategic Partnership with Investment from Aquiline Capital Partners

Validus

__Jeff Consolino and Ed Noonan want to take the attitude, culture and philosophy that powered Validus and apply them in a new context to make new launch Core Specialty the "greatest specialty insurance company in the US market".__

Speaking to Inside P&C, the two executives repeatedly anchored their thinking around their new venture to what had driven success at Validus, a business that earned early investors 5x-6x their money by the time it was sold to AIG in 2018 for $5.6bn at a valuation of 1.8x tangible book.

"Validus was a fantastic experience – we accomplished so much with the business," Consolino told this publication. "What motivates us is the chance to do it again – albeit in a different form and with a different focus."

The former Validus president and CFO, who then was AFG CFO for eight years, was speaking after the $900mn recapitalization of StarStone US closed after markets yesterday, paving the way for its relaunch as Core Specialty.

This time the founding executive team at serial acquirer Validus are in different seats, with Consolino – then president and CFO – now taking the reins as president and CEO, while Validus chairman and CEO Ed Noonan is working in the guise of executive chairman.

![ownership-of-core-specialty-ipc-dec-1-2020-v2jpg 72095](//images.ctfassets.net/56w7ng2k44w0/6JTN7sRtxeDgdng5tWjSYK/805ecb29c2929e586cfb89eb3f19c184/ownership-of-core-specialty-ipc-dec-1-2020-v2jpg_72095.jpg)

The formal launch, which follows months of pre-closing work, comes against a backdrop of significant interest in the US E&S market from private equity capital keen to capitalize on the twin tail winds of rapidly rising rates and increased submission flow.

__Moving decisively__

In addressing what distinguished Validus, Consolino said: "The company's success was really down to the attitude of 'anything can be done'. We acted with celerity, we acted decisively," pointing to its rapid move to acquire Talbot ahead of other Bermudians, willingness to pursue unsolicited takeovers and its swift progress to an IPO that allowed it to get ahead of the financial crisis.

Noonan said the philosophy also stressed the importance of hiring the right talent, completely aligning it to shareholders and then challenging unit leaders on their business plan before allowing them to execute without being second-guessed.

"We also embedded from day one that the sole purpose of an insurance company is to make underwriting profit," he noted. "So if you're not getting paid to take the risk, you put your pen down."

Consolino added that at Validus they looked for inspiration to leading Bermudian RenaissanceRe, and then set out to eclipse what it had achieved.

"Now we look in the same way at companies like WR Berkley, American Financial Group, Markel and RLI – and we make no apology for setting out to emulate them" he said.

"We admire these companies for their underwriting cultures, longevity and success in compounding their capital. Our goal is to be the very best primary specialty insurance business there is."

Consolino also stressed the importance of the "architecture" of the business, and specifically what he described as its "business unit philosophy".

The Core CEO stressed that a central tenet of the business was empowering the leaders of the firm's business units, allowing them to set a go-to-market strategy, make key decisions around distribution and determine reinsurance buying.

Oversight will be exercised through business plan scrutiny, with alignment around targets based on delivering strong accident-year underwriting results and a target return on capital for shareholders.

__Business unit philosophy__

Questioned about parallels in the market with the likes of WR Berkley, Consolino said the model "is consistent with how some other companies including AFG and Berkley run their businesses".

"We make no apology adapting those things that we think are good, appropriate and positive in other people's businesses. But this isn't new – it's also effectively how Validus was run, but with a different business unit configuration."

Post-close, Core Specialty has over $900mn of equity capital and writes around $450mn of business. Pressed on whether the business had critical mass on scale, Consolino replied: "There is a great body of work for commercial P&C that says there is no indication that scale corresponds with underwriting profitability."

He continued: "This is not a life insurance or auto insurance business where driving unit costs down is the most important success factor."

Consolino explained that the right size for business units is one where "you are large enough to make a difference, but not so large you are stuck with the market result".

Nevertheless, the Core CEO stressed that there was significant runway for growth for the business, with $900mn of capital relative to its premium base providing a "war chest" for growth.

He also pointed to scope for Core to move into new areas. "If you look at Berkley with over 50 niche businesses and Great American with 35 niche businesses – those are both rounded figures – we have a lot of room to add niches, and we are hard at work to do that."

StarStone US had five business units – excess casualty, workers’ comp, MPL, healthcare and marine – with a sixth created focusing on property under former Nephila underwriter Alison Oliphant since the recap was announced in June.

__The inevitability of M&A__

Validus won a reputation as the P&C player with the sharpest M&A strategy and execution, with six franchise-building acquisitions in 12 years before an expertly managed exit to AIG – and then there was its notorious break-up of the Allied World-TransRe deal, ahead of the reinsurer's ultimate acquisition by Alleghany.

![validus-table-dec-2020-ipcjpg 72088](//images.ctfassets.net/56w7ng2k44w0/5Drg76rAJF0gJC0Jg8ESGD/3abade8fd2311310c6a444db2b90c2f6/validus-table-dec-2020-ipcjpg_72088.jpg)

As well as the deal-making track record of the two executives at Validus, in a past life Consolino was a senior deal banker at what was then Merrill Lynch, and subsequently helped execute a number of deals at AFG including the well-timed move on workers' comp specialist Summit, as well as commercial auto deals National Interstate and Atlas.

Asked on the role which M&A will play in Core's future, Consolino said: "It's inevitable it is going to play a part in strategy – but we won’t be injudicious. We know that M&A is fraught with peril."

However, he stressed that 25% owner Enstar could help them to limit the reserving risk related to deals, and pointed to a sustained track record of successful execution.

"In an industry littered with terrible acquisitions, I think our track record is really second to none because I don't think you can find executives in this industry who have been as acquisitive as we have without stumbling," he said.

Perhaps reflecting the tendency to want to under-promise and over-deliver, which tends to characterize management communication around M&A, Noonan added that early deals were likely to be about adding "complementary pieces to our puzzle".

Enstar, which has effectively increased its investment via its swap deal with Stone Point, is likely to play an important role in deal origination with scope for the two to collaborate around transactions.

Consolino was also forthright in stressing that Core's future includes a listing, with such a move giving the company access to currency that can be used in M&A amongst other advantages.

"We want this company to be public when it makes sense," he said. "Ed and I both thrive in a public company environment."

__An arms race on talent__

Consolino and Noonan stressed the critical importance of talent acquisition throughout the business, with new hires including erstwhile Validus exec Rob Kuzloski, who becomes general counsel, and incoming CFO William Vens, an AFG and Merrill Lynch alumnus.

But they emphasized the centrality of the composition of the board to their "arms race" on talent.

Former Great American president Don Larson and recently retired Everest Re group CEO Dom Addesso have both been named to the board. They join alongside long-time AmWins CEO Steve DeCarlo, the founders of PE backers SkyKnight (Matthew Ebbel) and Dragoneer (Marc Stad) and Aquiline's co-head of insurance Chris Watson, who helped found Validus.

Enstar's representatives include group president Paul O'Shea, with Robert Campbell also in place.

![core-specialty-board-dec-2020-ipc-tablejpg 72087](//images.ctfassets.net/56w7ng2k44w0/7ghQNWFFVePTSwfQ832U3H/e967071039a8e71457c1066152636510/core-specialty-board-dec-2020-ipc-tablejpg_72087.jpg)

Consolino said this is about wanting to be surrounded by the smartest people, and argued that the quality of the board "can't really be matched anywhere", with every member of the board an experienced business builder.

Noonan said the board were not just dialling in for board meetings, stressing that they were helping to vet talent, actively identify opportunities and work on developing systems.

"It's day in day out – they are part of the circle of smart people trying to build a company," the former American Re CEO said.

__Overlooked opportunity__

Both Consolino and Noonan stressed that the platform which was being acquired was under-rated by the marketplace, with the former Validus CEO arguing that the US had been "overlooked" by others based on the issues with the international business.

Consolino pointed to the remedial work that had already been undertaken at StarStone during the recent period when former Validus executive John Hendrickson had been CEO and Noonan had briefly served as chairman, with another former colleague Robert Livingston running the US.

"The company already had a Validus imprint in its turnaround phase – a lot of the Validus diaspora was intensively involved in getting this right," he said, with this playing a role in pushing them towards pulling the trigger on this opportunity.

Consolino pointed to a nine-month combined ratio of 94% as evidence of the amount of ground made already on the turnaround.

Noonan said further progress has been made since June in reorientating the culture of the company.

"You can feel the culture changing," he noted. "Creating an environment of confidence is very important – just making people feel that management has their backs."

He added that some of what they were trying to do was as simple as people "getting more comfortable with it being fun".

"It's that 10 minutes of pointless digression in every call or Zoom meeting that helps people get comfortable and relaxed.”

------------

*Originally published by Adam McNestrie via Insurance Insider & here republished with permission*

Core Specialty: Validus reincarnated as a US specialty insurance company

NEW YORK, Oct. 2, 2020 /PRNewswire/ -- Aquiline Capital Partners today announced the signing of definitive agreements in which it will merge Insurance Claims Management, Inc., which operates under the CodeBlue brand, and FV Holdings, LLC dba MADSKY Managed Repair Program (MADSKY). The combination will bring together two industry-leading providers, offering a unique and unified interior and exterior emergency services and direct repair capability. Hunter Powell, currently CEO of MADSKY, will become CEO of the combined business.

CodeBlue is a rapidly growing provider of property claims outsourcing solutions for the insurance industry, using proven science and industry-leading technology to generate superior service and cost outcomes. The company was founded by Paul Gross with the introduction of a revolutionary water damage mitigation solution. It has since expanded to provide a "whole home" set of property claims outsourcing solutions, including First Notice of Loss, Water Mitigation, Direct Property Repair, Desk Repair and Contents Valuation for a multitude of insurance companies.

MADSKY is revolutionizing the handling of roofing and exterior restoration needs in the insurance claims and broader property management space.  MADSKY combines a claims concierge service with a network of vetted and highly qualified contractors. The firm offers a revolutionary program that simplifies the property restoration process and helps homeowners get back to their lives faster than ever before. In addition, leveraging its strong base of experienced roofing professionals, MADSKY offers several proprietary expert services aimed at aligning claim outcomes across stakeholders and decreasing loss severity.

"Both CodeBlue and MADSKY utilize technology-enabled claims delivery models that benefit insureds, insurance carriers and contractors," stated Jeff Greenberg, Chairman and Chief Executive Officer of Aquiline Capital Partners.  "We are excited to back Hunter, Paul and the combined leadership team as they further their market leadership in water mitigation and roofing while also entering compelling new areas where we will provide expertise and capital to support their growth."

"Combining CodeBlue and MADSKY brings together the leaders in managing interior and exterior damage assessment and repair. The combined entity will offer unique, value-added and mutually beneficial solutions to insurance carriers, property managers and individual property owners," said Hunter Powell. "Both firms share a purpose-driven ethos and a people-centric mentality, and together will bring unmatched focus and capabilities to delivering industry-leading services that blend results and performance with care and compassion. It is an incredible privilege to lead this organization."  

"Aquiline Capital Partners has tremendous expertise in insurance, insurance claims outsourcing and financial technology," said Paul Gross. "Together we will continue to expand our property claim solutions offerings, extend the combined company's technology platform and market leadership position and develop deeper carrier partnerships."

About Insurance Claims Management (ICM)
Headquartered in Springfield, Ohio with additional offices in Hudson, Ohio and Eau Claire, Wisconsin, ICM, operating under the CodeBlue brand, provides independent First Notice of Loss, Water Mitigation, Direct Repair, Desk Repair and Contents Valuation outsourcing solutions to insurance carriers throughout the United States and Canada. Leveraging proprietary technology during FNOL, CodeBlue captures live videos created by policyholders and contractors get the claim assessed, initiated, approved, and finished more quickly while reducing traditional expense. The platform facilitates CodeBlue contractor management and facilitates communication and business processes for insurance carriers, ICM, network service providers and policyholders. For more information, visit www.codeblue360.com.

About MADSKY

MADSKY is headquartered in Englewood, Colorado and provides insurance carriers and homeowners with the largest network of skilled trade professionals across the U.S. to repair roof and exterior damage following a hail or wind event. MADSKY is the trusted, go-to partner for managing the entire roof restoration process. MADSKY's network of skilled roofing contractors, general contractors, independent adjusters, suppliers, manufacturers, and more are responsible for doing the restoration work. Learn more at www.MADSKYmrp.com.

About Aquiline Capital Partners

Aquiline Capital Partners, founded in 2005, is a private investment firm based in New York and London investing in businesses across the financial services sector in financial technology, insurance, investment management, business services, credit and healthcare. The firm has $5.3 billion in assets under management as of December 31, 2019. For more information about Aquiline, its investment professionals, and its portfolio companies, please visit: www.aquiline.com.


Aquiline Capital Partners To Lead The Merger Of CodeBlue And MADSKY

Quintes

NEW YORK, NY and Culemborg The Netherlands. – July 20, 2020 – Aquiline Capital Partners, a global private investment firm specializing in financial services and technology, today announced that it has closed its investment in Quintes Holding, one of the largest independent insurance brokers in the Netherlands. Since its founding in 2012, Quintes has built a national footprint of brokers with a focus on serving the Dutch SME sector. 

The Company will maintain its corporate headquarters in Culemborg under the continued leadership of the existing management including CEO Gijsbert van de Nieuwegiessen and CFO Alex Klooster.

“The Dutch insurance market presents significant opportunities for continued growth, M&A activity and the need for a dedicated, technology-enabled SME broker,” said Jeff Greenberg, Chairman and Chief Executive Officer of Aquiline. “We are excited to back Gijsbert and his team as they continue to extend the Quintes proposition into new classes, customer segments and regions of the Netherlands.” 

“Quintes has worked hard to build its position in the Dutch market, and we are proud of what our 360 employees have helped build for our 100,000 customers,” said Gijsbert van de Nieuwegiessen, Chief Executive Officer, Quintes Holding. “As we continue on our aim to develop our footprint across the country, we are excited to partner with Aquiline, whose deep network in insurance and technology and commitment to our mission will help to expand our portfolio, drive innovation and build on our relationships with the SME customers and carriers who have brought us this far.”

No financial terms were disclosed. KPMG served as financial advisor to Quintes in this transaction, and De Brauw Blackstone Westbroek served as legal counsel. ING served as financial advisor to Aquiline in this transaction, and Stibbe served as legal counsel. 

About Aquiline Capital Partners LLC

Aquiline Capital Partners, founded in 2005, is a private investment firm based in New York and London investing in businesses across the financial services sector in financial technology, insurance, investment management, business services, credit and healthcare. The firm has $5.3 billion in assets under management as of December 31, 2019. For more information about Aquiline, its investment professionals, and its portfolio companies, please visit: www.aquiline.com.


Expertise focused
on management goals.

Opportunity with
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Insight for
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Expertise focused on management goals.

Opportunity with every connection.

Insight for further reach.