Technology-driven financial services company Buckle has acquired Gateway Insurance Company, including its 47 state insurance licenses.
Previously, Gateway was an indirect subsidiary of Atlas Financial Holdings which offers auto insurance to the US light commercial automobiles market.
According to the terms of the agreement, Buckle will re-capitalise Gateway to support Anchor Group Management (AGMI), Atlas’ fully owned managing general agency.
The company has agreed to support AGMI as it raises annual premiums. AGMI plans to transfer Atlas’ taxi, livery, and full-time TNC driver policies from its subsidiaries over to Gateway.
The partnership with Atlas will enable Buckle to offer comprehensive, affordable auto insurance to the commercial auto market.
It will provide protection to part-time rideshare and delivery drivers, full-time taxicab and limousine drivers, non-emergency para-transit drivers, and transportation network companies (TNCs).
Financing for the re-capitalisation of Gateway was issued by the clients of Hudson Structured Capital Management.
Buckle co-founder Marty Young said: “We believe this deal is a win-win for both TNCs and independent contractor drivers.
“As this partnership drives down the costs of insurance, we are excited to continue advancing our goal of providing well-deserved support to the mobility ecosystem. Every time Buckle sells a policy, its TNC partner’s balance sheet improves as risk is moved from the TNC to the independent contractors.”