RenaissanceRe-backed broker holds IPO
Insurance broker TWFG, backed by Bermuda reinsurer RenaissanceRe is seeking to raise $187 million from its initial public offering, which priced on Wednesday.
The offering of 11 million shares priced at $17 a share above its $14 to $16 a share range.
Texas-based TWFG, formerly known as The Woodlands Group, operates across 22 states in the US but is mainly concentrated in Texas, California and Louisiana.
The offering is being underwritten by a syndicate of nine Wall Street banks led by J.P. Morgan Securities, Morgan Stanley, BMO Capital Markets and Piper Sandler.
The company will list on the Nasdaq Global Select Market under the symbol "TWFG" today.
TWFG said in a statement it will receive net proceeds of approximately $168.3 million after deducting underwriting discounts and commissions and estimated expenses and intends to use the net proceeds to repay in full outstanding debt under its revolving credit agreement and for potential strategic acquisitions of, or investments in, other businesses or technologies that TWFG believes will complement its expansion strategies. and for general corporate purposes.
TWFG brokers primary property and casualty products, largely personal lines but also selling small business and commercial policies as well.
RenaissanceRe took a minority stake in TWFG’s shares through its RenaissanceRe Ventures arm in 2018.
It holds 75% of the company's Class B shares.
As part of the transaction, then-RenaissanceRe Ventures president Michael Doak took a seat on the TWFG Board. Jonathan Anderson of RenaissanceRe now also serves on the board.
TWFG is also known for its offering of flood insurance with higher limits and more options available than the NFIP policies, which are underwritten by syndicates at Lloyd’s of London.
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