Orion180 Group Inc. Raises Additional $42.5 Million of Capital

Rhea-AI Summary

Orion180 has successfully secured a $42.5 million senior secured credit facility, led by Regions Bank, aimed at enhancing its capital base for two insurance carriers: Orion180 Insurance Co. and Orion180 Select Insurance Co.. This investment supports underwriting growth and geographic expansion beyond their current operations in the Southeast and Midwest. Orion180 Insurance Co. had $20 million in equity prior to this investment. The company aims to leverage the new capital for competitive pricing and expanded service offerings in an increasingly challenging insurance market, where many competitors are scaling back.

Positive

• Secured $42.5 million credit facility to strengthen capital base.
• New funding supports underwriting and geographic expansion beyond Southeast and Midwest.
• Orion180 Insurance Co. had $20 million in equity prior to capital investment, enhancing financial strength.
• Positioned to offer competitive pricing and coverage amid market contraction.

Negative

• None.

Investment Builds Balance Sheet for Two Full-Stack Carriers

MELBOURNE, Fla.--(BUSINESS WIRE)-- Orion180, a premier provider of insurance solutions founded in 2016 to enhance the way agents and consumers purchase and manage insurance, has closed on an inaugural $42.5 million senior secured credit facility led by Regions Bank.

The senior secured credit facility will add to the capital base of both of Orion180’s carriers: Orion180 Insurance Co., an excess-and-surplus lines insurance carrier that underwrites non-admitted homeowners insurance in the Southeast, and Orion180 Select Insurance Co., formed to provide insurance solutions on an admitted basis throughout the Southeast and Midwest. Orion180 Insurance Co., formed in 2022, had $20 million of equity capital prior to the new capital investment.

The Indiana-domiciled insurers will use their broader capital base for underwriting growth and product line expansion, as well as geographic expansion beyond their current footprints. Orion180 Insurance Co. holds approvals to do business in Alabama, Indiana, Mississippi, North Carolina and South Carolina, and has approvals filed in Georgia and Tennessee.

“This significant new investment into Orion180 enables us to build on our market presence as an insurance firm that provides outstanding customer experience, competitive product offerings and strong agent relationships,” says Kenneth Gregg, CEO and founder of Orion180. “The new capital supports Orion180’s business strategy, which has already yielded positive revenue and customer growth.”

“This new capital significantly enhances Orion180’s brand, financial position, management and agent distribution strategy,” adds Gregg. “This fresh capital comes at a time when many insurance competitors are cutting back on underwriting capacity and technology investment. It allows us to continue offering competitive pricing and coverage in homeowners and other lines through our agent business partners.”

Leo Loughead, head of the Financial Services Group at Regions Bank, said the bank’s support reflects Regions’ strategic and consultative approach toward client service.

“At Regions Bank, our relationship approach to service provides clients with industry-specific advice and capital-raising solutions to serve and grow their business,” Loughead said. “Our service model helps clients meet their financial goals and business objectives. The team of bankers is committed to providing strategic support that is tailored to clients’ success.”

Orion180 Insurance Services, LLC, an affiliate of Orion180 Insurance Co., as a managing general underwriter produced approximately $145 million in written premium in 2022 while providing more than 80,000 policyholders throughout the southeast with valuable, sought-after protection.

About Orion180

Orion180 is a people-focused, technology-driven insurance brand that offers proprietary technology, real-time data, and straightforward underwriting enabling independent insurance agents to provide their customers a premier insurance experience.

Orion180’s operating companies are:

• Orion180 Insurance Co., a surplus lines (non-admitted) insurance company domiciled in Indiana.
• Orion180 Select Insurance Co., an Admitted insurance company domiciled in Indiana.
• Orion180 Insurance Services LLC, a managing general underwriter that partners with carriers and reinsurers to deliver homeowners insurance and other insurance solutions.

Orion180 has developed its own proprietary mobile application and technology platform, MY180, while also supporting third-party data integrations with insurance industry partners.

Orion180’s vision is to enhance the way consumers purchase and manage their insurance needs. Innovation in technology enables us to do MORE as we harness the power of our cutting-edge proprietary technology. Innovation in service is the catalyst allowing us to give MORE and achieve the highest level of customer care. Our innovation in culture fosters an environment that empowers us to be MORE. This innovation-focused ecosystem enables our customers to expect MORE.

Orion180.com

About Regions Financial Corporation

Regions Financial Corporation (NYSE:RF), with $155 billion in assets, is a member of the S&P 500 Index and is one of the nation’s largest full-service providers of consumer and commercial banking, wealth management, and mortgage products and services. Regions serves customers across the South, Midwest and Texas, and through its subsidiary, Regions Bank, operates approximately 1,300 banking offices and more than 2,000 ATMs. Regions Bank is an Equal Housing Lender and Member FDIC. Additional information about Regions and its full line of products and services can be found at www.regions.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230405005032/en/

Orion180, Junie Lopez

321.294.5992, jlopez@orion180.com

Source: Orion180

FAQ

What is the amount of the credit facility secured by Orion180?

Orion180 secured a $42.5 million senior secured credit facility.

Who led the credit facility for Orion180?

Regions Bank led the $42.5 million credit facility for Orion180.

What will the new capital from the credit facility be used for?

The new capital will be used for underwriting growth, product line expansion, and geographic expansion.

How much equity capital did Orion180 Insurance Co. have prior to the investment?

Orion180 Insurance Co. had $20 million of equity capital before the new investment.

In which regions does Orion180 operate?

Orion180 operates in the Southeast and Midwest regions, with approvals in several states.