Concert Group Holdings – a newly formed business dedicated to insurance fronting – has raised $100 million in capital to fund its growth.

A fronting company is a licensed and admitted insurer that issues policies to captives or to other self-insured type entities, but there’s no risk transfer involved. The policyholder keeps the risk, with the holder using reinsurance or a similar capital management facility to manage risk. Concert Group Holdings, Inc., through its wholly owned subsidiary, Concert Insurance Company, offers insurance fronting and related services in the United States.

In a related move, AM Best upgraded the financial strength rating to A- (Excellent) from B+ (Good) for Concert Insurance Company. It had previously been under review with positive implications, though now also has a stable outlook for its credit ratings

AM Best said the capital raise as well as Concert’s “adequate operating performance, limited business profile and appropriate enterprise risk management” were factors in its decision, which also included an upgrade of its long-term issuer credit rating.

“Favorable market conditions, as well as pent-up client demand, make this an opportune time to launch a fronting business focused, as Concert is, on superior, responsive client service; expert risk solutions; and low operating costs,” Concert Group Chairman Brady Young said in prepared remarks. “My founding partners and Concert’s experienced management team bring an established pipeline of quality business and a track record of successfully supporting new insurance businesses.”

Young is the founder and Chief Executive Officer of Strategic Risk Solutions, or SRS, the world’s largest independent manager of insurance companies. Concert’s other founders are Wes Duesenberg, Jr., CEO of Southern Insurance Underwriters; and Christopher Collins, CEO/founder of Corinthian Re, in partnership with Century Equity Partners and WT Holdings, Inc.

SRS is a prominent captive manager. Because Young is a Concert founder, that means Concert already has an established pipeline of business to access.

Concert, based in Chicago, Ill., also unveiled key executives who report to Chief Executive Officer Jonathan Reiss. They are Joe Alberti, Chief Underwriting Officer; Matthew Wagner, Chief Legal Officer; Michael Rybak, Chief Financial Officer; and Darian Ryan, Chief Credit Officer. Also joining Concert in key management roles are Raymond J. Rocchio Jr., Senior Vice President, Underwriting, Christopher M. DuCharme, CIC Chief Operating Officer, and Scott Stosek, CIC Vice President and Controller.

“This is an exciting point in Concert’s development,” Reiss said in prepared remarks. “There’s more to come over the next few months, so stay tuned. This includes an E&S platform that will be ready to write business before the end of the year.”

Oppenheimer & Co. Inc. served as exclusive financial advisor to Concert. Morris, Manning & Martin, LLP was legal advisor to Concert and Foley & Lardner LLP acted as lead counsel to the investors.

Sources: Concert Group Holdings, AM Best