Onex Corporation has announced that the Onex Partners Opportunities Fund has agreed to acquire Integrated Specialty Coverages (ISC), a tech-enabled insurance platform dedicated to designing, underwriting, and distributing insurance solutions, from KKR.
The investment by Onex Partners is being made alongside the Public Sector Pension Investment Board, Ardian (through its co-investment strategy), and several other leading institutional equity partners.
ISC’s management team and employees will remain significant shareholders following the transaction. The transaction is expected to close later this year, subject to customary closing conditions.
Latham & Watkins LLP represented Apollo in a financing to support the acquisition with a deal team led by partners Jesse Sheff, Erika Weinberg, and Paul Bonewitz.
The seller is KKR, which will exit its ISC stake once the transaction closes. Onex expects that milestone later this year, subject to standard closing terms.
ISC’s management team and nearly 400 employees remain in the mix, holding meaningful equity positions while also securing cash payouts.
According to Onex, those payouts will range from three months to more than two years of annual compensation once the deal completes.
Founded as a multiline program administrator, ISC runs a platform powered by proprietary data analytics, connecting distribution networks with insurance markets.
That end-to-end model, Onex believes, positions the firm for scale across multiple channels.
Headquartered in Carlsbad, California, ISC is a leading, multi-line program administrator dedicated to underwriting excellence and client service.
ISC has built an end-to-end insurance platform powered by proprietary data analytics that connects a broad network of insurance markets and distribution channels.
The Company uses sophisticated technology to transform how complex insurance programs are underwritten and operated. ISC is led by a team of experienced professionals from all spheres of the insurance ecosystem. As part of the transaction, KKR will exit its investment in the Company.
The insurance sector has long been a core focus area for Onex Partners. This investment continues Onex Partners’ long history of successfully investing across the entire property & casualty insurance value chain, particularly in founder-led businesses.
Investments in the sector are led by a dedicated Financial Services team who maintain an extensive network of value-add industry relationships across all relevant sub-sectors.
ISC combines all the elements we consider to be markers of success in an underwriting and distribution platform, including a disciplined, data-driven approach, broad and deep relationships with insurance carriers and brokers, and a best-in-class technology platform that enables superior underwriting results, client experience and cost efficiency.
Adam Cobourn, a Managing Director at Onex Partners
“We understand ISC’s end market very well and look forward to supporting the Company’s management team and employee-owners with all of our resources,” Adam Cobourn said.
Matt Grossberg, Founder and CEO of ISC, said, “This partnership will strengthen our ability to innovate and deliver cutting-edge insurance solutions across our core business lines, while also enabling us to pursue a broad range of new growth opportunities. ISC would like to thank KKR for its support and we look forward to working closely with Onex as we continue on our journey to innovate in the E&S market.”
Perella Weinberg served as exclusive financial advisor and Willkie Farr & Gallagher LLP served as legal counsel to Onex Partners.
The transaction is expected to close later this year, subject to customary closing conditions.
Separate from ISC, KKR remains active in other insurance-linked moves. Japan Post Insurance said it will inject $2bn into a new vehicle sponsored by Global Atlantic Financial Group, KKR’s insurance subsidiary.
The commitment gives Japan Post a majority share of the capital pool. The vehicle, according to the announcement, will access Global Atlantic’s insurance, reinsurance, and broader strategic activity.
For Onex, ISC expands its footprint in insurance services. For KKR, the exit marks a recycling of capital into another corner of the global insurance market.
Both deals reinforce how private equity continues to play aggressively in the sector, chasing platforms, balance-sheet capacity, and new structures all at once.
Onex invests and manages capital on behalf of its shareholders and clients across the globe. Formed in 1984, we have a long track record of creating value for our clients and shareholders. Our investors include a broad range of global clients, including public and private pension plans, sovereign wealth funds, banks, insurance companies, family offices and high-net-worth individuals. In total, Onex has approximately $55.9 bn in assets under management, of which $8.4 bn is Onex’ own investing capital.
