TowerBrook announces acquisition of Orchid Underwriters from Gryphon Investors

December 20, 2018

TowerBrook Capital Partners L.P. (“TowerBrook”), an international investment management firm, announced today that it has acquired Orchid Underwriters Agency, LLC (“Orchid”), a specialty underwriter of catastrophe exposed property insurance, from private equity firm Gryphon Investors. Financial terms were not disclosed.

Orchid President and CEO Brad Emmons will continue to lead Orchid, working alongside TowerBrook to continue the company’s growth. Gryphon will maintain a significant equity position in the company going forward.

Founded in 1998 and based in Vero Beach, FL, Orchid is a Managing General Agency (MGA)/Managing General Underwriter (MGU) providing specialty P&C insurance products to homeowners, high net worth individuals, and small businesses throughout the United States and the Caribbean. Orchid provides proprietary insurance solutions for “hard-to-place” risks to a growing, national network of retail agents and other strategic distribution partners. The company maintains several long-standing partnerships with high-quality insurance and reinsurance carriers that provide consistent and, in many cases, exclusive risk capacity to Orchid.

“We are thrilled to partner with TowerBrook and look forward to benefiting from its deep operational experience and strong network in the insurance industry,” said Brad Emmons, President and CEO of Orchid. “We have made significant strategic advancements under Gryphon’s ownership, and we now expect TowerBrook’s investment and guidance to further support future development as we continue to grow the platform organically through geographic and product expansion and pursue potential acquisitions. We look forward to the opportunities ahead as we work together to deliver greater value for our partner agents, carriers, and talented employees.”

TowerBrook’s investment in Orchid is the result of a targeted approach to the insurance services market focused on identifying attractive, resilient business models with consistent growth profiles. This acquisition aligns with TowerBrook’s investment strategy to back strong management teams operating in growth markets. TowerBrook will work with Orchid’s management team to develop organic and inorganic initiatives which further scale Orchid’s platform.

TowerBrook has a long history of investments in the insurance and financial services industry and a strong network in the sector, having partnered with companies such as Ironshore, Rewards Network, CapQuest, Hayfin, Fortiva, Validity Finance, and Ladder Capital.