INSURICA Acquires First Light: A Major Step in Transportation Insurance

INSURICA Insurance Services has finalized its acquisition of First Light Program Managers, a prominent wholesale insurance company based in Florida. This strategic move represents the most significant acquisition in INSURICA's history, intensifying its influence in the competitive insurance industry.

First Light's Specialized Focus

First Light stands out as a wholesale broker and delegated underwriting agency, with a keen emphasis on transportation insurance, specifically in the trucking and marine sectors. Established in 2007 by the late Anthony L. Johnson, First Light brings a vital new dimension to INSURICA’s strategic portfolio, enhancing their underwriting and risk management capabilities.

Strategic Integration and Industry Impact

John Hester and Mark Bridges, key figures in the acquisition journey, articulated that this merger is crucial for INSURICA to fortify its presence in the U.S. transportation insurance market. Approximately 100 First Light employees based in Florida and North Carolina are expected to seamlessly join INSURICA’s workforce, integrating critical expertise and resources.

Challenges and Market Trends

The acquisition is set against a backdrop of challenges within the commercial auto industry, marked by hardening market conditions. Trucking companies continue to face challenges with reduced spot and contract rates, coupled with a 15% dip in new extra-heavy truck orders compared to the previous year. This acquisition aligns with a notable shift towards delegated underwriting models, reflected by a 40% increase in net written premiums managed by underwriters with such authority over the past year.

Leadership Perspectives and Future Direction

Dillon Rosenhamer, president of INSURICA, highlighted the synergy between the companies as central to their acquisition strategy. He noted, "We are impressed with First Light's strong fundamentals and their commitment to underwriting excellence," reinforcing INSURICA’s specialized approach within the insurance industry. Janet Fender, First Light's president and chief underwriting officer, expressed optimism that the merger will drive growth, leveraging shared technological and data-driven initiatives.

INSURICA’s CEO and Chairman, Mike Ross, underlined that the acquisition symbolizes the company's ongoing growth trajectory. He remarked on the anticipated substantial benefits for their colleagues, clients, and partners stemming from First Light’s integration. Through this strategic acquisition, INSURICA plans to leverage First Light's assets and expertise to adeptly navigate the evolving landscape of transportation insurance.