Stone Point Capital is investing in Alliant Insurance Services, an insurance brokerage backed by KKR & Co.
Funds managed by Stone Point will become Alliant’s largest shareholders, according to a statement Tuesday from Newport Beach, Calif.-based Alliant that didn’t disclose terms. KKR will retain a stake in the business.
Private equity firms are investing in insurance services for steady cash flow and low capital expenditures. Insurers have been benefiting from increased demand for coverage as the economy improves, boosting opportunities for brokers, data providers and other firms that serve the industry. Policy sales for property/casualty carriers climbed more than 4 percent in both 2014 and 2013.
“This new partnership is a significant and positive move for Alliant, as it represents the expansion and diversification of our private equity support,” Alliant CEO Tom Corbett said in the statement.