Genstar Capital has formed Confie Seguros, an acquisition platform focused on insurance brokerages, primarily focused on the Hispanic consumer. It has $75 million in committed capital from Genstar, platform management and a bank facility. The future capacity is expected to exceed $200 million. In related news, Confie Seguros has made its first acquisition: Westline Corp., an insurance brokerage firm serving California.
Genstar Capital, LLC, a middle market private equity firm that focuses on investments in selected segments of the life sciences and healthcare services, industrial technology, business services and software services, today announced that it has partnered with experienced insurance industry executives and Westline Corporation to establish Confie Seguros, a platform company to consolidate insurance brokerages primarily focused on the Hispanic consumer. Concurrent with the formation of this new entity, Confie Seguros announced that it has completed its first investment in Westline, an insurance brokerage firm serving California.
In the next three years, Genstar and the Confie Seguros management team, led by experienced insurance brokerage CEO John Addeo, look to build a national distribution company with revenues exceeding $300 million, focusing on key markets including, but not limited to, California, Arizona, Florida, Texas, Georgia, and Nevada. Funding for future acquisitions will be provided by a commitment from Genstar and management of $75 million and a bank facility with expected capacity in excess of $200 million.
Mr. Addeo has successfully led two consolidations of middle-market property and casualty brokerages. Most recently, he was President and CEO of Alliant Resources Group, a company he founded and built to over $200 million of revenues through 12 acquisitions. Prior to that, he was President and COO of USI Insurance Services, where he acquired 90 insurance brokerages and built USI into the sixth largest brokerage firm in the U.S.
Mr. Addeo is joined by an accomplished and seasoned executive team. Mordy Rothberg, Founder and President of Confie Seguros, has significant business development experience from his tenure as an executive at IDT Corp and Net2phone, and will lead Business Development and Strategy; Stephen Provenzano, Executive Vice President & CFO, has over 25 years of finance and operations experience in multi-unit retail businesses; and Andre Urena, Senior Vice President of Business Development, joins with over 20 years of experience in the Hispanic insurance market and is the CEO and founder of the Latin American Agents Association.
“The attractive growth dynamics of this market and the new business opportunities will enable us to build the first national insurance brokerage with an emphasis on Hispanic consumers. Confie Seguros will also position us to bring a variety of other insurance and financial services products to the underserved Hispanic community,” said Confie Seguros CEO John Addeo. “We look forward to our new partnership with Westline and Genstar, whose financial support and experience building businesses will be instrumental as we accelerate our growth.”
Westline, based in Cypress, California, is of one the largest distributors of non-standard auto insurance products operating from 29 retail branches throughout California. Westline offers its products through three brokerage operations: South Coast Auto Insurance, Solo Insurance, and Freeway Insurance. Westline will serve as the operating platform to build out the California region for Confie Seguros. “Westline has successfully integrated several brokerage acquisitions over the last five years, and we have developed a proven operational model for these agencies,” said John Klaeb, founder and CEO of Westline, who with COO Joe Waked, will continue to lead operations and acquisitions in California. “We are excited about partnering with the Confie Seguros team and Genstar Capital to continue to provide valuable insurance products to the community.” John Klaeb will serve as a member of Confie Seguros’ board of directors in addition to his role as CEO of Westline.
“This new investment is consistent with our strategy of partnering with high caliber management teams and investing in quality platform companies that operate in attractive markets with consolidation opportunities to build strong companies,” said J. Ryan Clark, a Vice President of Genstar. “We have been working with the management teams of Confie Seguros and Westline to refine the business plan and ensure that the company is properly structured and capitalized to achieve our strategic objectives. We look forward to working with John and his team, and the successful principals of Westline as we build Confie Seguros.”
Earlier in 2007, Genstar invested in another insurance-related company, 21st Services, a Minneapolis-based company that is a leading provider of life expectancy information that is currently used in the life settlement industry, the secondary market for life insurance. 21st Services currently supplies life expectancy estimates on seniors to brokers, providers and investors, as they determine the valuation for a policy.
About Genstar Capital, LLC
Based in San Francisco, Genstar Capital (www.gencap.com) is a leading private equity investment firm that makes leveraged investments in quality middle-market companies. Genstar Capital works in partnership with management to transform its portfolio companies into industry-leading businesses. With more than $3 billion of committed capital under management and significant experience investing in businesses, Genstar focuses on selected segments of life science and healthcare services, industrial technology, business services and software services.