Bain Capital Insurance invests a $200 mn in GuideOne Insurance Company

Bain Capital Insurance has announced a $200 mn investment in GuideOne, marking the inception of The Mutual Group, a new insurance platform catering to the mutual insurance sector.

This development stems from Bain Capital Insurance’s strategic acquisition of GuideOne Insurance Company’s operational platform.

GuideOne Insurance Company, a mutual insurance carrier, will be the first member of The Mutual Group.

Based in West Des Moines, Iowa, The Mutual Group is gearing up for its debut, managing about $800 mn in yearly premiums and catering to nearly 50,000 commercial policyholders with its team of 400 employees.

The company’s mission is to enhance the operational effectiveness of mutual carriers, promoting their enduring prosperity while preserving their autonomy and mutual advantages.

The Mutual Group will provide a variety of services, including underwriting, claim processing, and reinsurance procurement.

Additionally, it offers an extensive technology platform encompassing policy management, enterprise billing, and claims administration systems.

Bain Capital Insurance invests a $200 mn in GuideOne Insurance Company

GuideOne, as the first member to join The Mutual Group, has allocated the $200 mn received towards reinforcing its financial stability and surplus, thereby supporting its ongoing growth and commitment to its policyholders.

This strategic move will contribute to GuideOne’s long-term stability, enhancing operational efficiencies and underwriting results as part of The Mutual Group.

Bain Capital Insurance Fund, LP, Bain Capital Insurance’s first dedicated insurance private equity fund, valued at $1.17 billion, facilitated the investment.

This fund is managed by a skilled team of over 20 investment professionals at Bain Capital Insurance. The completion of this transaction is anticipated by the end of 2023, pending standard regulatory approvals and other typical closing conditions.

The new member-centric mutual platform will be chaired by Chuck Chamness, who previously held the position of CEO at the National Association of Mutual Insurance Companies.

Tim Fleming, currently the SVP of Core Commercial Lines at GuideOne, has been named to lead The Mutual Group as its CEO.

Tim Fleming, SVP of Core Commercial Lines at GuideOne

The Mutual Group is an new platform that combines GuideOne’s nearly eight decades of experience as a niche mutual insurance carrier and its highly specialized team with the insurance investing acumen and strategic vision of Bain Capital Insurance

Tim Fleming, SVP of Core Commercial Lines at GuideOne

“Our goal in supporting mutuals is to preserve their independence and benefits of mutuality while providing a modern, scalable operating platform that supports long-term success”, – Tim Fleming says.

Concurrent with this transaction, Bernie Hengesbaugh, the current CEO of GuideOne, will take on the role of chairman. Additionally, Ken Cadematori, GuideOne’s CFO, will be stepping into the role of president and CEO, succeeding Hengesbaugh.

GuideOne Insurance, founded in 1947, is a United States-based insurance company that primarily focuses on providing insurance solutions for organizations and individuals engaged in serving and supporting their communities.

GuideOne specializes in offering insurance products tailored to non-profit organizations, educational institutions, religious organizations, and healthcare facilities. Their product range typically includes property and casualty insurance, liability insurance, and workers’ compensation, among others.

They often offer specialized coverages that cater to the specific risks and requirements of their client base. For example, they may offer risk management resources and safety materials specifically designed for religious institutions or non-profits.

Yana Keller   by Yana Keller