Insurtech Buckle announces new funding, possibly looking toward acquisition
Atlas Financial, the parent company of American Country Insurance Company and American Service Insurance Company, reported a letter of intent from Buckle to acquire the stock, charters and state licenses of those two units. Atlas previously sold Gateway Insurance Company to Buckle this year.
"Subsequent to closing, Buckle plans to recapitalize American Country and American Service in addition to Gateway and utilize the recapitalized American Country, American Service, and Gateway... [to] support the writing of new and renewal insurance policies, including non-paratransit policies for AGMI [Atlas's MGA, Anchor Group Management]," the Atlas statement says.
"The relationship with Buckle has been very constructive thus far and we see a number of synergies and incremental opportunities to work together as partners," adds Scott D. Wollney, President & CEO of Atlas, in the statement. "Despite the challenges we all face in light of COVID-19 and the impact it is having on demand for insurance in the commercial auto space, continuing to make progress with strategic activities like this will best position us to optimize opportunities in the future when economic recovery begins."
When contacted by Digital Insurance, Buckle said it was not commenting on its plans for the deal until it concludes. Marty Young, co-founder of the insurtech, added that there was no relation between a $31 million Series A funding round Buckle announced today and the letter of intent. That round was co-led by HSCM Bermuda and Eos Venture Partners.