PE InsurTech Deal Engine: M&A, Float & Claims AI Modeler

Active Deal Preset Q3 2026 Structuring

Initial Gross Written Premium (GWP) $320M

Carrier Investable Float Asset Base $450M

Sponsor Equity Check $180M

Senior Debt Leverage (x EBITDA) 4.5x

Operational Value Drivers

Claims AI Straight-Through Penetration 68%

Claims LAE Expense Compression 22%

Float Deployed to Private Credit / ABS 40%

Embedded Distribution Affinity Partners 6 Partners

5-Yr Projected IRR

24.8%

Exit MOIC: 2.85x

Pro-Forma Combined Ratio

89.6%

Pre-Acquisition: 102.4%

Claims AI LAE Savings

$36.8M

Cycle Time -42%

Float Yield Spread Lift

+185 bps

+$8.3M Ann. NII

Embedded GWP Inflow

$142.5M

31.2% CAGR Target

Combined Ratio Compression Waterfall (Underwriting + AI + Reinsurance) Sub-90% Target Discipline

PE parent deployment of captive carrier float reserves from standard government bonds (3.45%) into proprietary asset-backed securities (ABS) and senior private credit funds (6.80%), preserving RBC solvency buffers.

Asset Allocation Tranche	Capital Base ($M)	Base Yield (%)	Annual NII ($M)	NAIC Capital Charge

Integration of automated multi-modal triage, computer-vision vehicle/property damage appraisal, and automated fraud scoring on First Notice of Loss (FNOL).

Metric / Operational Node	Legacy Carrier	AI Pro-Forma	Operational Delta

Affinity B2B2C API integration scaling programmatic point-of-sale insurance policies, offsetting traditional broker distributor commissions with partner revenue shares.

Partner Cohort	Integrated Count	Avg GWP / Partner	Commission Take	Net Contribution