Hartford, Conn.-based Tennant Capital Partners announced it has made an investment in Insuritas Inc., a firm that provides insurance agency outsourcing for financial institutions.
Jeffrey Chesky, Insuritas president and chief executive officer, said full financial details were not being released but Tennant is now a shareholder. He would not divulge their percentage but said they do not hold a majority interest.
The announcement of the transaction explained that Insuritas, based in East Granby, Conn., allows banks, credit unions and other organizations to own a complete insurance agency aisle in their store without the significant capital investment required to build or buy an agency or the inherent operational risks of integrating an acquisition.
The Insuritas turnkey solution includes access to insurance companies, sales professionals and sales strategies, and complete back-office services including billing and claims processing.
According to Mr. Chesky, "Financial institutions do a great job of running deposit, loan and investment aisles in their stores. The biggest barriers impacting their success in creating an insurance aisle in their stores are cost and culture."
He said the Insuritas turnkey outsourcing solution "eliminates both of these barriers by allowing them to leverage the resources and capabilities of a proven, fully operational, fully outsourced insurance agency."
Robert Sargent, managing partner of Tennant Capital Partners, said his organization was enthusiastic about the venture because "Insuritas has developed an innovative and specialized approach that has already proven successful in their business segment."
Insuritas was formed through the acquisition of Banc Insurance Services from Jack Henry & Associates Inc. Terms of the transaction were not disclosed.
Tennant Capital Partners is an independent venture capital firm focused on startup and early stage specialty insurance organizations.
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