Baldwin Group to Launch New Insurance Exchange with $110 Million Funding
The Baldwin Group has secured $110 million in surplus financing to support the launch of its new reciprocal insurance exchange, Builder Reciprocal Insurance Exchange (BRIE). The funding comes through a note purchase agreement.
The financing will be issued through surplus debentures. An affiliate of Gallatin Point Capital LLC will provide $95 million of the financing, with the remaining $15 million coming from Baldwin affiliates. The transaction is expected to close in the second quarter of 2025, pending regulatory approvals and the fulfillment of standard closing conditions.
According to Baldwin CEO Trevor Baldwin, this agreement is a key move in the company’s strategy to vertically integrate its operations and introduce third-party risk capital solutions. The aim is to boost risk transfer efficiency.
“Launching BRIE represents a meaningful milestone in our continued journey to vertically integrate across the value chain and bring innovative, third-party risk capital solutions to market in support of more efficient risk transfer outcomes for our clients,” Baldwin stated.
Matthew Botein, co-founder and managing partner of Gallatin Point, highlighted Baldwin’s growth and expressed enthusiasm for the partnership.
“Baldwin’s growth over the past decade has been remarkable, and we are excited to be able to support them through our capital investment as they continue to create innovative insurance solutions for their clients and further grow their builder-sourced homeowners book of business,” Botein said.
BRIE is designed to provide capacity for Baldwin’s builder-sourced homeowners insurance business. MSI will be supported by an affiliate of Baldwin, which will serve as the attorney-in-fact for BRIE.
MSI has fulfilled all requirements to extend its existing Program Administration Agreement, allowing its carrier partner to continue supporting its business during the transition. The Baldwin Group doesn’t anticipate consolidating BRIE’s or the AIF’s financial results, and the notes will not be considered additional debt for the company or its affiliates.
Insurance Advisory Partners LLC served as the exclusive financial advisor to Baldwin and placement agent for the notes. Troutman Pepper Locke LLP acted as legal counsel for Baldwin, and Morgan, Lewis & Bockius LLP represented Gallatin Point in the transaction.
Recent Financial Performance
In February 2025, The Baldwin Group reported an adjusted EBITDA of $312.5 million, marking a 25% increase compared to the previous year, with an adjusted net income of $176.9 million. Revenue also saw a rise, increasing by 14% year-over-year to $1.4 billion.
“We saw continued momentum across our business with organic growth of 19% for the fourth quarter, 17% for the full year, and double digits across all three of our segments showcasing the strength of our colleague and client franchise,” said CEO Trevor Baldwin.
