How we deploy capital | insurance.fund

Agencies and books

For buyers, sellers and the next generation of owners.

Acquisition financing: Debt or equity to buy an agency or a book of business.
Book purchase: Buying a book outright, usually priced on commission revenue or EBITDA.
Earn-out: Part of the price paid over time as the book retains and grows.
Seller note: The seller finances part of the purchase and is paid back over time.
Recapitalization: Partial liquidity for owners while they keep running the agency.
Roll-up and add-on: Combining agencies onto one platform for shared carriers, tech and scale.
Perpetuation financing: Funding for producers or managers to buy into, or buy out, the agency they work at, so ownership passes inside the firm. We do not fund producers to leave with an agency's book or staff.

For underwriters who want to own a program.

Program equity: Ownership capital to build an MGA or program business.
Working capital: Funding for systems, people and licensing before premium scales.
Fronting: A rated carrier issues the paper and cedes most of the risk to reinsurers or the program.
Capacity introductions: Connecting a program with carriers and reinsurers that fit its class and size.
Profit commission: Extra commission paid when the program's loss ratio comes in under target.
Sliding-scale ceding commission: A commission that moves with loss experience, aligning the program and its capacity.

For carriers, captives and programs that need balance sheet.

Surplus relief: Reinsurance that frees up surplus so a carrier can keep writing.
Quota share: A reinsurer takes a fixed percentage of every policy's premium and losses.
Excess of loss: Protection above a set retention, per risk or per event.
Sidecar: A separate vehicle where outside capital shares in a defined slice of a book.
Collateralized reinsurance: Reinsurance backed by cash or securities posted in trust.
Funds withheld: The ceding company keeps the premium and the reinsurer earns on it.
Captive and cell capital: Capital for a captive or a protected cell to retain its own risk.

For agencies, programs and finance companies.

Warehouse line: A revolving credit facility that funds premium finance loans as they are written.
Receivables purchase: Buying a portfolio of financed premium contracts.
Participation: Taking a share of loans originated by a premium finance company.
Forward flow: A standing agreement to fund new loans as they are originated.

For closing books, exiting programs and old reserves.

Loss portfolio transfer: Moving existing reserves and their claims to another party for a premium.
Adverse development cover: Protection if old reserves develop worse than expected.
Renewal rights: Selling the right to renew a book while the old policies run off.
Commutation: Settling a reinsurance contract early for a negotiated amount.

For founders building insurance software.

Pre-seed and seed: Early equity to prove the product with real insurance work.
SAFE and convertible note: Early capital that converts to equity at a later round.
Venture debt: Debt alongside equity for companies with revenue.
Strategic investment: Capital from operators who also bring distribution and platform.