Exclusive: Balance Partners set to launch LoPorto-led excess construction program

By David Bull

March 18 - (The Insurer) - Expansive MGA platform Balance Partners has secured capacity to launch Vertical, a new excess construction program that will be led by John P (JP) LoPorto, with a maximum line size of $5 million.

Sources familiar with the situation told Program Manager that the new product will provide meaningful A-minus XV AM Best rated capacity to the New York construction space with a specific focus on interior trades.

Targeted classes are expected to include electrical, HVAC, drywall and plumbers.

New York-based LoPorto was most recently a regional production specialist at Starr Companies, according to his LinkedIn profile.

Vertical is expected to deploy its $5 million line over $2 million/$4 million/$4 million primary policies as well as excess $5 million, with minimum premium of $100,000.

The launch comes at a time of significant demand for capacity and hard market conditions across segments of the New York construction insurance market.

The new program will add to a growing portfolio of premiums on the Balance Partners platform, which lean on the company’s established operational and administrative resources, including its technology stack.

As previously reported, BV Investment Partners-backed Balance Partners has grown since its launch by Michael Sillat and Joe Calise in 2019 to roughly $300 million to $350 million of premium volume across 15 programs. Ten are operated as in-house programs with another five on its incubator platform, Springboard.

The company looks to match underwriting talent with “state-of-the-art” infrastructure, distribution relationships and insurance carrier capacity, as well as reinsurance support.

In addition to de-novo programs driving organic growth, Balance Partners earlier this month closed its first M&A deal, with the acquisition of MGA and programs platform Vanguard Specialty.

The acquisition will significantly scale up its professional liability offerings and add a meaningful amount of GWP to Balance Partners’ premium volume. The acquired company has a total of 11 programs on its books, with the majority of its business coming from lawyers professional liability, real estate, E&O, title agents, along with insurance agents and brokers E&O.

MarshBerry acted as financial advisor to Vanguard Specialty in its sale process.

Program Partners last April secured a strategic investment from BV Investment Partners.

Balance Partners did not immediately respond to a request for comment on this article.