Shield Indemnity, Inc. is a specialty insurance provider primarily focused on niche liability coverage for consumers. Through many years of successful growth, Shield has established itself as a well-capitalized insurer and was seeking to leverage its surplus capital base to support both geographic and business line expansion. After evaluating an organic growth strategy whereby Shield would expand through a lengthy process of filing insurance applications across multiple states, the Company sought out to either merge with or acquire an existing multi-state admitted insurance business.
Based outside of Detroit, Michigan, Universal Fire & Casualty Insurance Company (UFCIC) provides commercial surety along with surety bail insurance products across the United States. The business was established in 2003 and has relationships with insurance agencies and bail agents that rely on UFCIC for its expertise in underwriting smaller commercial opportunities and serving the unique requirements involving bail bond surety. Further, UFCIC maintains insurance licenses in more than 40 states, an important asset that would support Shield Indemnity’s strategic expansion goals.
PPC’s engagement included assisting Shield Indemnity and its affiliates in an evaluation of UFCIC, advising on valuation and transaction structure options, and ultimately helping negotiate a Letter of Intent between the parties. After finalizing LOI negotiations, PPC assisted Shield through the due diligence process and assisted in closing the transaction during the fourth quarter of 2021. The merger transaction resulted in the formation of Universal Shield Insurance Group and represents another successful Done Deal for PPC. See press release.