Forming a specialty underwriter of homeowners’ insurance in coastal markets
Narragansett Bay Insurance Company (“NBIC”) is a leading specialty underwriter of homeowners’ insurance products and services in states along the Eastern seaboard. Originally recapitalized out of receivership in 2008, NBIC was backed by Newlight Partners in partnership with Pine Brook Road Partners as a de novo specialty underwriter of homeowners’ insurance in CAT-exposed markets. By 2017, NBIC had organically grown to nearly 200,000 policies and $320m in premium when it was sold to Heritage Insurance Company.
- Status: Realized
- Investment Year: 2008
- Region: North America
You find out about partners in tough times. While working with Newlight through Hurricane Sandy, they proved their mettle as great partners - knowledgeable of the industry and levelheaded through tough times. They knew when to support me and when to push me.
NBIC’s CEO on Newlight’s support during challenging times.
Background and Newlight Value Add
Following losses from hurricane Katrina, Rita, and Wilma many insurers exited the CAT-exposed markets, and the homeowners’ market was experiencing a market dislocation in coastal areas. NBIC was formed as a specialized, regional homeowners’ insurance carrier focused on developing a core competency in selecting, managing, and properly reinsuring coastal risk.
Executive Recruiting & Alignment
Newlight played a critical role in recruiting key management to NBIC, including introducing the CEO to the NBIC opportunity in 2012. Newlight introduced experts in other functional areas as well, leading to enhanced reserving procedures, reinsurance purchasing processes, and risk monitoring functions.
Capital and Regulatory Support
Following hurricane Sandy, the Newlight team worked hand-in-hand with the management team to recapitalize the company, and work with regulators and ratings agencies to maintain support for the business.
Operational Assistance & Governance
Newlight was highly involved in supporting management with dashboard design and monitoring, reinsurance purchasing decisions, and capital management.