Bain Capital Insurance invests $200 million into GuideOne

The Mutual Group, a new insurance platform serving the mutual industry, announced its plans to launch with support from Bain Capital Insurance, the dedicated insurance investing unit of Bain Capital. The Mutual Group is being created through Bain Capital Insurance’s acquisition of the operational platform of GuideOne Insurance Company, a mutual insurance carrier founded in 1947. GuideOne will serve as the inaugural member of The Mutual Group.

The Mutual Group will launch with approximately $800 million in annual premium serviced across 50k commercial policyholders by its over 400 employees, and is based in West Des Moines, Iowa. The company’s solution is designed to help mutual carriers enhance their operational efficiency, support their long-term success and to “preserve their independence and benefits of mutuality.” Some of the services it will offer include underwriting, claims, and reinsurance purchasing as well as a “robust technological suite” that provides policy administration, enterprise billing and enterprise claims administration systems.

GuideOne will use the $200 million it received for becoming the inaugural member of The Mutual Group to strengthen its balance sheet and surplus position and to bolster its continued growth in support of policyholders. As The Mutual Group’s inaugural member, GuideOne will further support its long-term stability through improved operational efficiencies and underwriting performance.

The investment was made out of the $1.17 billion Bain Capital Insurance Fund, LP, the inaugural dedicated insurance private equity fund managed by Bain Capital Insurance and its team of over 20 investment professionals. The transaction is expected to close by the end of 2023, subject to customary approvals and other closing conditions.

Chuck Chamness, former CEO of the National Association of Mutual Insurance Companies, is the newly appointed chairman of the new member-centric mutual platform. Tim Fleming, SVP of Core Commercial Lines at GuideOne, will lead The Mutual Group as CEO. As part of the transaction, Bernie Hengesbaugh, CEO of GuideOne, will become chairman, and Ken Cadematori, CFO of GuideOne, will succeed him as president and CEO.

“The Mutual Group is an exciting new platform that combines GuideOne’s nearly eight decades of experience as a niche mutual insurance carrier and its highly specialized team with the insurance investing acumen and strategic vision of Bain Capital Insurance. Our goal in supporting mutuals is to preserve their independence and benefits of mutuality while providing a modern, scalable operating platform that supports long-term success.” – Tim Fleming.

“We are proud to continue our team’s history of developing innovative solutions for the mutual insurance industry. We are thrilled to not only launch this new solutions platform, but also to bring a leading mutual insurer like GuideOne on as The Mutual Group’s first member as we further strengthen its path forward.” – Matt Popoli, global head of Bain Capital Insurance.