Insurance company K2 Insurance Services and New York-based private equity firm Lee Equity Partners founded American Mobile Insurance Exchange (AMIE), a two-way exchange that aims to insure Florida mobile home owners.
AMIE, headquartered in St. Petersburg, Florida, has received additional financial support from Hudson Structured Capital Management Ltd., which conducts its reinsurance business as HSCM Bermuda), an asset manager focused on the reinsurance industry.
AMIE will focus on writing fire insurance policies for homeowners and mobile home owners for manufactured homeowners, largely in mature parks, throughout Florida.
A reciprocal insurance exchange is an unincorporated association owned by its policyholder members who exchange insurance policies to spread risk by pooling their money. There are no shareholders. The day-to-day operations of the exchange will be managed by an attorney – in fact, who will be Florida-based American Mobile Risk Management for AMIE.
Jeff LeGare, president of American Mobile Risk Management, and former consultant who assisted K2 in the creation of the new exchange, said AMIE will provide "affordable insurance solutions to a market that has historically been underserved."
LeGare has years of experience in the Florida real estate insurance market and other areas prone to disaster. As president of AMRM, LeGare will lead the day-to-day operations of the fair. He also serves on the board of managers, along with executives from K2.
Prior to joining AMIE, LeGare ran L5 Consulting, an insurance consultancy in Dallas; advised MaxGapPlus, a provider of gap insurance; spent nearly nine years as general manager of the Dallas area for Guy Carpenter; and spent 10 years with insurance broker Collins in Tampa. He also had stints with EW Blanch and Sedgwick Re.
AMIE has obtained a Financial Stability Rating A Exceptional from the rating agency Demotech.
AMRM will have a close partnership with K2 who has experience in the manufactured homes niche in manufacturing, underwriting and reviewing claims.
Robert Kimmel, chairman of the board of AMRM and CEO of K2 said AMIE will be able to provide a “truly differentiated approach to the market” given K2's experience through its subsidiary Aegis General.
K2 and Lee equity served as sponsors for the creation of AMIE and led an initial tranche of surplus bonds, including investments from AMRM management and strategic partners. HSCM is partnering with AMIE to fund additional surpluses that complete the stock exchange's capitalization.
TigerRisk Capital Markets & Advisory acted as sole transaction advisor for K2 and placement agent for AMIE.