Houston International Insurance Sells Southwest Risk to GCP Capital

Houston International Insurance Group (HIIG) has sold its wholesale insurance broker subsidiary, Southwest Risk LP (SWR), to New York-based, private equity firm GCP Capital Partners LLC (GCP). The terms were not disclosed.

HIIG will retain an equity interest in the new company and HIIG CEO Stephen L. Way will be chairman of the board.

The merger between Southwest Insurance Partners and Lightyear Delos Acquisition Corp. recently was rebranded as HIIG, which is the parent company of the group’s property and casualty insurance companies; a life and health insurance company; and its underwriting agency subsidiaries.

SWR, a wholesale broker based in Dallas, Texas, specializes in placing commercial property and casualty insurance coverages using traditional and alternative risk transfer strategies. GCP has said that Southwest Risk will change its name to ClearView Risk.

Bryan Wilburn, chief executive officer of SWR, and his management team will continue to lead the company.

As for HIIG, Way said it is “in a strong position to continue to build for the future” and anticipates “making further transactions in the near term.”

HIIG’s business primarily consists of small and medium size accounts written through its affiliated and non-affiliated underwriting agencies. Some larger accounts will be written by the underwriting team in the Houston home office.

HIIG has more than $1 billion in total assets; $625 million in investment assets; and over $250 million in shareholders’ equity. The combined companies are admitted in 50 states and have surplus lines authority in 48 states for property and casualty business. Life and health insurance can be written in 42 states.

GCP, based in New York, currently manages five private equity funds totaling $1.9 billion in committed capital. It has a successful track record of investing $1.4 billion in approximately 60 portfolio companies.

Source: HIIG