Crestview backs Novel Financial as insurance platform expands into specialty lines
What's the deal? Novel Financial HoldingsDealroom has a profile for this one. Try Dealroom → has secured a growth equity investment from private equity firm Crestview PartnersDealroom has a profile for this one. Try Dealroom →, which will fund the company's build-out as a diversified underwriting and insurance services holding company. The announcement did not disclose the amount or terms.
What does Novel do? It owns traditional insurance carriers, manages policyholder-owned reciprocal exchanges through attorney-in-fact (AIF) entities, and runs specialized insurance services businesses. Its portfolio includes Forza Insurance Holdings and the AM Best "A" rated GeoVera Nova group.
Why Crestview? The firm has invested across financial services since 2004, with a sustained focus on insurance and reinsurance. "Crestview brings not only flexible capital but also meaningful sector expertise and relationships that will support our growth for years to come," said Novel chief executive officer Rob Bredahl.
What's the endgame? Novel plans to expand into specialty and casualty lines and develop its own individual risk underwriting capabilities, alongside partnerships with managing general agents such as SageSureDealroom has a profile for this one. Try Dealroom →. Its model combines fee-based earnings from AIFs with operating results from owned carriers.
Why now? The deal caps a rapid build-out. Flexpoint FordDealroom has a profile for this one. Try Dealroom → invested in June, and GeoVera Nova became a wholly owned subsidiary in April; Novel's managed carriers now write about $2 billion in annual gross premiums.
The signal: Crestview's backing adds a second institutional investor to a platform assembling scale across underwriting and insurance services. "We believe Novel has assembled a unique and compelling set of capabilities," said Dan Kilpatrick, partner and head of financial services at Crestview — a bet on diversified insurance models built to weather market cycles.
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