Coalition, a San Francisco-based cyber insurer and security company, has snatched up Attune, a carrier-founded managing general agent with a broker platform focused on commercial insurance.
With the acquisition, Coalition asserts it is creating what is arguably the world’s largest commercial InsurTech provider, with more than 130,000 policyholders in play. The goal: to target a P/C insurance market opportunity that Coalition asserts surpasses $100 billion.
Attune was a startup launched jointly by American International Group, Hamilton Insurance and Two Sigma in late 2016, and CEO James Hobson has been in charge since early 2017. Attune has 150 people, who will become part of a company with 270 employees.
“Together, our companies will define the future of insurance by applying data and technology expertise to mitigate current and emerging risk, expand our insurance offerings to keep more businesses safe, and build a better experience for insurance brokers and their clients,” Joshua Motta, CEO and co-founder of Coalition, said in prepared remarks.
News of the deal comes about a week after Coalition disclosed it had raised a gigantic $205 million venture financing, with a push into public markets among its future plans.
Neither Coalition nor Attune are disclosing financial terms, though a Coalition spokesperson disclosed the M&A move is “an all-cash transaction.”
In acquiring Attune, Coalition is getting an InsurTech and insurance producer licensed in 50 states through which customers have the ability to quote and bind Business Owners, Workers Compensation, Commercial Liability Excess, Professional Liability, and General Liability policies in minutes for hundreds of small-commercial classes, the announcement noted.
The idea is that the combined companies would be able to offer digital insurance that can leverage vast amounts of data to assess, mitigate, and eliminate risk for businesses. Coalition will also broaden the reach of its cyber insurance through Attune’s platform. Coalition said it will also use advances it has made in analytics and machine learning to launch an expanded set of Attune’s insurance offerings over time. The combined company is already delivering over $500M in run rate gross written premiums, Coalition claims.
Additionally, Coalition said, the addition of its products to Attune’s broker platform and marketplace will help brokers access a wide variety of insurance products from a single interface to more efficiently meet their clients’ needs. Coalition’s proactive risk management platform, Coalition Control, will also be made available to all Attune policyholders to help them proactively monitor and prevent risks to their organizations, the deal announcement added.
“Our brokers will soon be able to offer businesses access to Coalition cyber insurance alongside the business owner policies, general liability, and other leading Attune products in a comprehensive package,” Hobson said in prepared remarks.
With the acquisition, the combined Attune-appointed brokers will continue to have access to the Attune marketplace where they’ll find a number of additional lines of insurance including BOP (Businessowners’ Policy), Workers’ Compensation, General Liability, Professional Liability, and Excess Liability insurance, as well as Coalition’s cyber insurance offering. Attune will still operate as a standalone business with access to Coalition’s technology and data capabilities to enhance underwriting and risk management.
Both the Coalition and Attune will continue to scale into 2022 and beyond, the companies said.