Exclusive: Sands Point lands first acquisition with stop-loss MGU BRM Specialty Markets

By James Thaler

July 21 - (The Insurer) - Sands Point Risk has closed its first acquisition with a deal for Pennsylvania-based medical stop-loss MGU BRM Specialty Markets, the latest step in its expansion plans after previously launching in transactional liability and construction, sources familiar with the matter told Program Manager.

BRM, which is led by founder Roman McDonald, has been around since 2019 and offers specific stop-loss coverage that reimburses employers for a catastrophic claim on any covered individual during a contract period.

It also offers aggregate stop loss coverage reimbursing employers for total plan claims that exceed expected plan claims by more than an established percent.

Its underwriting criteria includes a minimum group size of 20 lives, subject to state requirements and minimum specific deductibles of $15,000.

Sands Point was launched at the beginning of 2024 by former Dual transactional liability executives Dennis Kearns, Pat Darragh and Dan Simnowitz.

It has private equity backing from Avesi Partners, which has declared that it plans to invest in the business to support the build-out of a diversified MGA platform.

A spokesperson for Sands Point confirmed the acquisition in a statement to Program Manager.

“This acquisition combines the strengths of both organizations and marks a significant step forward in both companies’ missions to deliver innovative, high-impact solutions across the insurance industry,” the company said in a statement.

As a Sands Point company, BRM will continue to operate independently under its established brand with its full founding leadership and team remaining in place, while gaining access to what Sands Point said are its extensive resources and broader service capabilities.

"We are excited to welcome BRM to the Sands Point family and will benefit greatly from their exceptional team, deep domain expertise and the reputation and trust they have earned in the market," Dennis Kearns, Sands Point’s CEO, said in a statement.

"This is about growing together — supporting BRM’s vision while delivering Sands Point’s exceptional underwriting and service that our customers and partners have come to expect,” he added.

McDonald, who serves as BRM’s founder and managing partner, also commented on the deal.

“BRM has been built on the foundation of strong relationships, customer service, and consistent results,” McDonald said in a statement.

“Partnering with Sands Point allows BRM to propel our strategic vision to grow and scale, without changing the core of who we are,” he added.

In an interview with The Insurer in July 2024, Avesi partner and chief operating officer John Aiello laid out the PE firm’s ambition to build Sands Point into a full-scale diversified MGU platform, setting its sights on $1 billion in premium in the next three years fueled by team hires and one to two acquisitions a year.