Newly merged Universal Shield targets admitted and E&S growth

The parent of Universal Fire & Casualty Insurance Company (UFCIC) has combined with Shield Indemnity to form P&C holding company Universal Shield Insurance Group in a move that broadens the two carriers’ product offerings and expands their capital deployment capabilities.

UFCIC, based in Hudsonville, Michigan, describes itself as an admitted insurer and insurtech that underwrites commercial P&C and specialty surety business.

Shield Indemnity, which is based in Charleston, North Carolina and historically focused on general liability, has been restructured as a surplus lines company.

The two companies together wrote a little over $17mn of net premium in the first nine months of last year. As separate entities they reported a total of around $33mn in policyholders surplus at 30 September 2021.

The new combination under the Universal Shield banner will allow UFCIC and Shield Indemnity to offer a broader range of products and deploy its combined capital through an intercompany pooling arrangement.

“Under the umbrella of Universal Shield, UFCIC and Shield Indemnity will serve the commercial P&C marketplace as a multi-line, multi-product, multi-market brand embracing strong, highly-responsive distribution partners, customer service portals, innovative technologies, unique product positioning, and advanced analytics leveraging AI and big data resources,” said Chris Timm, the CEO of UFCIC and now also CEO of USIG.

UFCIC’s existing executive leadership team will continue to lead the enlarged business, with Timm serving as CEO and Richard Klimaszewski as president and chief operating officer, and John Lucker as executive vice president and chief strategy/analytics officer.

Travis Harrison serves as senior vice president and chief financial officer, while Brian Lietzke holds the title of senior vice president of specialty surety.

Steven Jokerst holds the title of senior vice president and chief actuary, while Sandra Nance will be vice president and chief underwriting officer. Tim Ellis serves as vice president and chief information officer, John Catrabone as vice president and chief distribution officer.

Shield Indemnity’s Anthony Modd will serve as executive vice president and general counsel. Current UIM chairman Thomas Parker has been appointed chairman of USIG.

“Commercial lines P&C insurance is intensely competitive,” said Timm.

“By leveraging our admitted and surplus lines expertise and capabilities, Universal Shield will continue to operate at the forefront of the insurance and insurtech marketplace.”

“Under Chris Timm’s experienced leadership we have assembled an impressive team to build on each company’s successful strategy and product platforms and to realize immediate marketplace synergies with innovative, high-end distribution methods, and customer service excellence,” said Parker.

Raymond James Investment Banking served as UIM’s financial advisor while Bodman PLC acted as its attorneys. Shield Indemnity’s financial advisor was Milwaukee-based Promontory Point Capital while its attorneys were Squire Patton Boggs (US) LLP.