Novel Financial Receives Investment From Crestview Partners

Novel Financial Holdings, a Jersey City, New Jersey-based insurance and underwriting services company, has received an investment from Crestview Partners. The financial details of the investment have not been disclosed.

The company plans to use the investment to expand its operations and development efforts. The partnership will also support its strategy to grow its insurance business and enter additional specialty and casualty markets.

What is Novel Financial?

Novel Financial is an insurance holding company that owns and manages insurance carriers, policyholder-owned reciprocal exchanges and specialised insurance service businesses.

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The company operates through two main models. It owns attorney in fact (AIF) entities that manage reciprocal insurance exchanges and also owns traditional stock insurance companies through direct ownership, and service contracts.

Its business combines fee based income from insurance management, and AIF services with earnings from its owned insurance carriers. This structure allows Novel to diversify its revenue sources and underwriting exposure.

Its portfolio includes Forza Insurance Holdings, which owns the AIF entities managing SureChoice Underwriters Reciprocal Exchange (SURE) and Elevate Reciprocal Exchange. It also includes the GeoVera Nova group of companies.

Who Invested in Novel Financial?

Crestview Partners invested in Novel Financial.

Crestview has invested in financial services businesses since its establishment in 2004, with a focus on insurance and reinsurance. Its experience in the sector and industry relationships are expected to support Novel's expansion plans.

Why the Investment Matters

Novel plans to use the capital to expand its operations and strengthen its development efforts.

The investment will support its work with established underwriting organisations, including SageSure and other third-party managing general agents (MGAs). Novel also plans to build its own individual risk underwriting capabilities and expand into additional specialty and casualty insurance lines.

Rob Bredahl, Chief Executive Officer of Novel, said, “As we continue to scale and diversify Novel, we are excited to partner with Crestview, a firm that has been investing across insurance and reinsurance for two decades and has backed insurance businesses through full market cycles.

Dan Kilpatrick, Partner and Head of Financial Services at Crestview, noted, “We are thrilled to be partnering with Rob and the terrific team at Novel. We believe Novel has assembled a unique and compelling set of capabilities combining insurance underwriting, reciprocal exchange management, and specialized insurance services that positions it to thrive in today’s fast-evolving insurance market.

Market and Business Growth

Novel's portfolio includes Forza Insurance Holdings, and GeoVera Nova. Through Forza, the company supports the management of SURE and Elevate, while GeoVera Nova provides a platform for residential and commercial property insurance products.

GeoVera Nova's insurance entities hold an AM Best financial strength rating of A (Excellent). Novel plans to use this platform to develop additional specialty and casualty underwriting teams.

The company also works with established underwriting organisations and third-party MGAs as part of its broader insurance business.

What Happens Next?

Novel plans to expand its existing insurance operations, strengthen partnerships with underwriting organisations and develop additional individual risk underwriting capabilities.

The company will also focus on entering more specialty and casualty insurance markets, using its existing portfolio and Crestview Partners' industry experience to support its growth.

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