Philadelphia-based National Surety Underwriters has picked up $11.5m in investments, with $8m of the investment came as a structured term loan from i2B Capital.
The remaining $3.5m of the investment was provided by a group of unnamed investors.
NSU is a privately-owned holding company, underwriting agency and reinsurance captive, which looks to build and manage specialty insurance agencies.
This capital will be used to support its new subsidiary, National Fidelity Reinsurance Company, which is a surety insurance captive licensed through the North Carolina Insurance Department.
The funding will also be used to merge McCabe and Independent Corporate Underwriters to create Managing General Underwriter, which focuses on surety bonds in New Jersey. This merger will allow NFRC to underwrite and reinsure surety bonds through its licensed insurance carrier partner Clear Blue Insurance Company.
i2B Capital COO Barbara Anderson said, “Our goal over the initial 36-month structured term loan is to prepare NSU for traditional institutional financing in the future. To accomplish that objective, we will provide the growth capital along with our commercial lending expertise to help NSU prepare for the disciplined reporting requirements and credit processes at the next level.”
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