Commercial insurer agrees to acquire E&S provider

Commercial property insurer FM has reached an agreement in principle to acquire Velocity Specialty Insurance Company (VSIC).

VSIC is an excess and surplus (E&S) insurance provider that writes middle market and small to medium business risks in catastrophe exposed areas.

FM has agreed to acquire the firm as it looks to expand its expertise and propositions to include E&S property insurance.

The deal is expected to close in the first half of 2025,

Malcolm Roberts, chairman and chief executive at FM, said: “VSIC’s focus on property insurance and expertise in understanding the new risk landscape that many businesses face align perfectly with FM’s mission.

“Moreover, this transaction may eventually allow us to provide our clients with an even broader suite of products and solutions to meet risks today and in the future. We are excited to welcome VSIC to the FM family.”

Other deal

VSIC was formerly part of the Velocity Risk Group, which also included Velocity Risk Underwriters.

Velocity Risk Underwriters was recently acquired by insurance group Ryan Specialty for a cash consideration of $525m (£423m).

Miles Wuller, president and chief executive at Ryan Specialty Underwriting Managers, said: “Adding Velocity to our property catastrophe portfolio significantly enhances our ability to serve our wholesale clients and further solidifies Ryan Specialty Underwriting Managers as the preeminent delegated authority platform in the country.

“This talented team has developed robust technology, portfolio management and data analytics capabilities that augment their innovative underwriting and claims approach. We are looking forward to having the Velocity team as a part of the Ryan Specialty family.”