Benchmark Holding Company Announces Agreement to Acquire 7710 Insurance Company

Rhea-AI Summary

Benchmark Holding Company has announced its agreement to acquire 7710 Insurance Company, along with its associated program manager and agency, 7710 Service Company, LLC and Creekwood Insurance Agency, LLC. Founded in 2014, 7710 specializes in underwriting workers' compensation for emergency services, utilizing a proprietary safety program designed by industry professionals. This acquisition will enhance Trean Insurance Group's reach in providing services to underserved insurance markets. Financial terms of the transaction were not disclosed.

Positive

• Acquisition enhances Trean's market reach in the emergency services insurance sector.
• 7710's specialized approach targets an underserved market, potentially increasing revenue.
• The partnership may lead to improved service offerings through experienced staff.

Negative

• None.

WAYZATA, Minn., July 17, 2020 (GLOBE NEWSWIRE) -- Benchmark Holding Company is pleased to announce that it has entered into an agreement to acquire 7710 Insurance Company as well as its associated program manager and agency, 7710 Service Company, LLC and Creekwood Insurance Agency, LLC, respectively. 

7710 Insurance Company was incorporated in 2014 and underwrites workers’ compensation for Emergency Services, including Firefighters and Emergency Medical Services (EMS).  The company focuses on reducing costs and claims through diligent implementation of a proprietary safety preparedness and loss control program (S.H.I.E.L.D.), created and staffed by experienced firefighters and EMS professionals.

Benchmark Holding Company is a wholly owned subsidiary of Trean Insurance Group, Inc. (NASDAQ: TIG) (“Trean”).  7710 Insurance Company will join other TIG affiliated insurance companies, American Liberty Insurance Company and Benchmark Insurance Company.  These are A.M. Best ‘A VIII’ rated carriers offering specialty property and casualty products in 49 states and D.C. 

“We believe that being part of Trean uniquely positions 7710 to be the nationwide “go to” workers’ compensation insurance partner for the emergency services industry,” said Bill Adamson, CEO, 7710 Insurance Company.  “We are excited by the opportunity for our clients and colleagues that this transaction represents.”

“We are delighted to welcome 7710 into the Trean family,” said Andy O’Brien, TIG’s President and CEO. “7710’s experienced staff and specialized business model will give us even greater reach in providing exceptional services and products to underserved insurance markets.”

Terms of the transaction were not disclosed.  Oppenheimer & Co. Inc. served as exclusive financial advisor to 7710 Insurance Company.

About the Companies
7710 Insurance Company is a South Carolina domiciled insurance carrier focused solely on workers’ compensation for the fire and emergency services industry.

Trean Insurance Group, Inc. and its affiliated companies were founded in 1996 to provide innovative solutions in the insurance and reinsurance markets. The company is headquartered in Wayzata, Minnesota, and has offices in ten states across the U.S.

Company contact:
Joy N. Edler, COO, (952) 974-2200, joy.edler@trean.com

Investor relations contact:
Julie A. Baron, CFO, Treasurer and Secretary, (952) 974-2200, julie.baron@trean.com

Source: Trean Insurance Group, Inc.

Forward-Looking Statements

This press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements that are not historical or current facts. You can identify forward-looking statements by words such as “anticipate,” “estimate,” “expect,” “intend,” “plan,” “predict,” “project,” “believe,” “seek,” “outlook,” “future,” “will,” “would,” “should,” “could,” “may,” “can have,” “likely” and similar terms. Forward-looking statements are based on management’s current expectations and assumptions about future events. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Factors that may cause such differences include the risks described in the Company’s filings with the Securities and Exchange Commission. These forward-looking statements speak only as of the date of this press release. The Company disclaims any obligation to update or revise any forward-looking statement, whether as a result of new information, future developments, changes in assumptions or otherwise.

 

FAQ

What is the purpose of the acquisition of 7710 Insurance Company by TIG?

The acquisition aims to enhance Trean Insurance Group's market presence and service offerings in the emergency services workers' compensation sector.

When was the acquisition of 7710 Insurance Company announced?

The acquisition was announced on July 17, 2020.

What does 7710 Insurance Company specialize in?

7710 Insurance Company specializes in underwriting workers' compensation for emergency services, including firefighters and EMS.

What financial advisory firm was involved in the acquisition deal?

Oppenheimer & Co. Inc. served as the exclusive financial advisor to 7710 Insurance Company.

What are the anticipated benefits of acquiring 7710 Insurance Company for TIG?

The acquisition is expected to provide greater reach in offering exceptional services and specialized products to underserved markets.