The Baldwin Group has signed a note purchase agreement to raise $110 million in surplus financing for the launch of its debut Baldwin-sponsored reciprocal insurance exchange, Builder Reciprocal Insurance Exchange (BRIE).
The financing will be issued through surplus debentures, with $95 million provided by an affiliate of Gallatin Point Capital LLC and the remaining $15 million funded by Baldwin affiliates. The transaction is expected to close in the second quarter of 2025, subject to regulatory approvals and customary closing conditions.
Baldwin CEO Trevor Baldwin said the agreement represents a key step in the company’s strategy to vertically integrate and introduce third-party risk capital solutions to improve 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 said.
Matthew Botein, co-founder and managing partner of Gallatin Point, highlighted Baldwin’s growth and the potential of 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 will provide capacity for Baldwin’s builder-sourced homeowners insurance business, supporting its affiliated managing general agency (MSI) as it transitions from its current carrier partner. MSI has met all requirements to extend its existing Program Administration Agreement, allowing its carrier partner to continue supporting the business through the transition.
An affiliate of Baldwin will serve as the attorney-in-fact for BRIE. Baldwin does not expect to consolidate BRIE’s or the AIF’s financial results, meaning the Notes will not be considered additional debt for Baldwin or its affiliates.
Insurance Advisory Partners LLC acted as the exclusive financial advisor to Baldwin and placement agent for the Notes. Troutman Pepper Locke LLP served as legal counsel to Baldwin, while Morgan, Lewis & Bockius LLP represented Gallatin Point in the transaction.
In February 2025, Baldwin Group achieved adjusted EBITDA of $312.5 million, a 25% increase from the previous year, while adjusted net income was $176.9 million. Revenue increased 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.
