Clarion Capital Partners Acquires Majority Stake in Great Northwest Insurance Company, an Innovative, Low-Cost Insurer
Clarion Capital Partners, LLC, a New York-based private equity firm focused on middle-market, growth-oriented businesses, said it has acquired a controlling stake in Great Northwest Insurance Company (GNW), an innovative, low-cost insurer.
GNW is a unique personal lines insurance company that focuses on writing simple and predictable product lines such as auto, home and small business owners’ policies. The company utilizes an innovative, low-cost business model, which utilizes technology to ensure predictable underwriting and to reduce costs. The model maximizes customer service by empowering independent agents to maintain most customer contact. The company is licensed to write insurance in eleven states, and is applying for additional state licenses to support growth. GNW has received an initial rating of B+ from A.M. Best.
GNW was launched in 1993 and currently has corporate offices in Boise, Idaho, and Minneapolis, Minnesota. The company today has more than 100 agencies doing business in twelve states.
“We believe Great Northwest’s business model is highly scalable and offers substantial competitive advantages in terms of cost and customer service,” said Andrew Kofman, a Partner at Clarion. Clarion anticipates that the company will grow significantly over the next 3 to 5 years, organically and through acquisitions.
“We are pleased to have a partner like Clarion recognize the benefits of our model,” said Steven Doucette, CEO of GNW. “With Clarion’s investment we will be able to accelerate our growth and further diversify.”
Clarion’s investment was made through Trumpet SBIC Partners, L.P. and Clarion owns a significant majority of the equity in GNW Acquisition Corp., a holding company that is the sole shareholder in GNW. Other equity investors include the former owners of Great Northwest Holding Company, a predecessor to GNW.
Clarion Capital Partners, LLC, is a New-York based private investment firm. The firm invests in the consumer products, business services, specialty retail, specialty financial services and niche media/entertainment industries. Previous and current investments by the professionals of Clarion include the Imax Corporation, All-Clad Holdings, Inc., Snapple Beverage Company, Encore Capital Group, Cascade Entertainment Group, U.S. Nursing Corporation, and The Oceanaire, Inc.
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