US-based digital insurer At-Bay has purchased At-Bay Specialty Insurance Company from XL Insurance America for an undisclosed sum.
With a licence to operate in 44 US states, the acquired entity is an excess and surplus (E&S) line property and casualty (P&C) insurance company.
Through the acquisition of a full-stack carrier, At-Bay hopes to accelerate product expansion into new speciality lines of business.
Additionally, the agreement is anticipated to increase At-Bay’s commitment to the wholesale channel while giving it more control over the insurance value chain.
At-Bay co-founder and CEO Rotem Iram said: “This milestone will allow us to accelerate the pace of our innovation and better serve our broker partners and customers.
“Becoming an insurance carrier further cements our commitment to build the next generation of insurance, and tackle the critical challenge of cyber and digital risk.”
In their new roles as independent directors, Gregg Davis and Rob Glanville will join the recently acquired entity.
Currently, At-Bay provides cyber, technology errors and omissions (Tech E&O), and miscellaneous professional liability (MPL) insurance via wholesale intermediaries and online channels.
Later this year, the company plans to begin issuing policies through its carrier.
The acquisition of At-Bay Specialty Insurance Corporate adds to the company’s recent accomplishments, such as the introduction of two new insurance products in the past six months and recording $380m in annual recurring gross written premium (ARGWP), the insurer said.
In August 2022, At-Bay acquired Relay, which provides a digital placement solution for a range of commercial lines.