Ambac Subsidiary Beat Capital Partners Launches Fallow Grove Insurance Services with A+ Rated Capacity, Specializing in Commercial Middle Market Property

Rhea-AI Summary

Ambac Financial Group's subsidiary, Beat Capital Partners, has launched Fallow Grove Insurance Services, a U.S.-based company specializing in commercial middle market property insurance. Led by industry veteran Brett Dupre, Fallow Grove offers excess and surplus lines technical and general commercial property insurance with A+ rated capacity.

The company focuses on addressing complex risks and exposures faced by businesses across the United States. Fallow Grove's product lineup includes industrial, flood, builder's risk, and general property risks, distributed exclusively through wholesale brokers. The launch aligns with Ambac's organic growth strategy, aiming to establish 8-10 new MGAs over multiple years.

Positive

• Launch of Fallow Grove Insurance Services, expanding Ambac's market presence
• A+ rated capacity backing Fallow Grove's operations
• Experienced leadership with Brett Dupre as CEO, bringing 35+ years of industry expertise
• Specialized focus on middle market property insurance, addressing complex risks
• Alignment with Ambac's organic growth strategy to launch 8-10 new MGAs

Negative

• None.

Insights

Insurance Industry Analyst

The launch of Fallow Grove Insurance Services marks a significant strategic move for Ambac's subsidiary Beat Capital Partners. This new venture targets the lucrative commercial middle market property sector, leveraging A+ rated capacity and expert leadership. The focus on excess and surplus lines for complex risks positions Fallow Grove to capture a high-value segment of the market. Brett Dupre's extensive experience, particularly in technical underwriting, adds credibility to the operation. The exclusive distribution through wholesale brokers suggests a targeted approach to market penetration. This launch aligns with Ambac's broader strategy of organic growth through MGA development, potentially diversifying revenue streams and enhancing long-term value. However, success will depend on market conditions, underwriting performance and effective execution of the business plan.

Financial Analyst

This development is strategically positive for Ambac (NYSE: AMBC), potentially enhancing its revenue diversification and growth prospects. The commercial property insurance market, especially in the middle market segment, often offers higher margins and more stable returns compared to other insurance lines. Fallow Grove's focus on technical and complex risks could lead to premium pricing power. The backing of A+ rated capacity, likely including Beat Syndicate 4242 at Lloyd's, provides financial strength and credibility. Ambac's goal of launching 8-10 new MGAs over multiple years indicates a clear growth strategy that could significantly impact future earnings. However, investors should monitor the performance and scale-up of these new ventures, as they will take time to materially contribute to Ambac's bottom line. The success of this strategy could positively influence Ambac's valuation over the medium to long term.

CHARLOTTE, N.C.--(BUSINESS WIRE)-- Beat Capital Partners (“Beat”), a London-based incubator of underwriting franchises and a subsidiary of Ambac Financial Group, Inc. (“Ambac”) (NYSE: AMBC), has partnered with former CrossCover executive Brett Dupre to launch U.S.-based Fallow Grove Insurance Services (“Fallow Grove”). Dupre has more than 35 years of industry experience and was also a former executive at AmRisc Group and FM Global.

The Fallow Grove product offering is focused on excess and surplus lines technical and general commercial property insurance, designed to address the complex risks, exposures and challenges faced by businesses across the United States.

Dupre, president and chief executive officer of Fallow Grove, emphasized the company’s strategic approach, stating, “Our core mission at Fallow Grove is to serve the unique needs of the middle market property space with a level of precision, expertise and service that is unmatched in the industry. Our partnership with Beat and an excellent, knowledgeable panel of capacity partners enhances our ability to deliver top-tier commercial property products tailored to the diverse requirements of our clients.”

Backed by A+ rated capacity, Fallow Grove writes on behalf of a consortium led by Beat Syndicate 4242 at Lloyd’s and offers a robust line of property products, including industrial, flood, builder’s risk and general property risks. Its products will be distributed exclusively through wholesale brokers.

John Cavanagh, chairman of Beat, added, “We are excited about the potential of Fallow Grove to be a top-tier underwriter in the commercial property insurance landscape with market-leading underwriting returns. With Brett’s leadership and our collective team of experts, we are poised to provide innovative solutions that are effective, tailored and in high demand.”

Claude LeBlanc, president and chief executive officer of Ambac, stated, “We are excited to welcome Brett Dupre, whose extensive technical underwriting background, prior leadership roles, and proven track record of building similar, successful businesses will continue the trend of developing future value for the group. The launch furthers a core component of our organic growth strategy, with our multiyear goal being to launch eight to 10 new MGAs.”

About Fallow Grove Insurance Services

Fallow Grove Insurance Services specializes in commercial property insurance for the middle market, offering a suite of products that cover the technical and general commercial property insurance marketplaces. With the backing of highly rated capacity and plans to bring on a team of seasoned industry professionals, Fallow Grove is committed to excellence and innovation in meeting the insurance needs of its clients by helping them deal with the ever evolving property risk landscape accompanied by market leading service for its distribution partners.

About Ambac

Ambac Financial Group, Inc. (“Ambac”) is an insurance holding company headquartered in New York City. Ambac’s core business is a growing specialty P&C distribution and underwriting platform. Ambac’s common stock trades on the New York Stock Exchange under the symbol “AMBC”. For more information, please visit www.ambac.com.

Beat Capital Partners

Beat Capital Partners is a London-based incubator of underwriting franchises which offers select individuals and teams' infrastructure, risk capital, and highly rated paper, alongside experienced guidance and support from its seasoned management team. Beat has launched a broad portfolio of specialty underwriting businesses since its founding in 2017 and services Lloyd’s Syndicates 4242/1416. Beat is a subsidiary of Ambac Financial Group, Inc. (NYSE: AMBC). For more information, see www.beatcapital.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241017563803/en/

Investors:

Charles J. Sebaski

Managing Director, Investor Relations

csebaski@ambac.com

Media:

Kate Smith

Director, Corporate Communications

ksmith@ambac.com

David Haggie

Haggie Partners

david@haggiepartners.com

Olivia Thomson

Haggie Partners

Olivia.Thomson@haggiepartners.com

Source: Ambac Financial Group, Inc.

FAQ

What is Fallow Grove Insurance Services and how is it related to Ambac (AMBC)?

Fallow Grove Insurance Services is a newly launched U.S.-based insurance company specializing in commercial middle market property insurance. It is a venture of Beat Capital Partners, which is a subsidiary of Ambac Financial Group, Inc. (NYSE: AMBC).

What types of insurance products does Fallow Grove offer?

Fallow Grove offers excess and surplus lines technical and general commercial property insurance, including industrial, flood, builder's risk, and general property risks.

Who is leading Fallow Grove Insurance Services?

Brett Dupre, a former CrossCover executive with over 35 years of industry experience, is leading Fallow Grove Insurance Services as its president and chief executive officer.

How does the launch of Fallow Grove align with Ambac's (AMBC) strategy?

The launch of Fallow Grove aligns with Ambac's organic growth strategy, which aims to launch 8-10 new MGAs over multiple years, potentially creating future value for the group.

What is the financial strength rating of Fallow Grove's insurance capacity?

Fallow Grove Insurance Services is backed by A+ rated capacity, with a consortium led by Beat Syndicate 4242 at Lloyd's.