Transverse Insurance Group

Transverse Insurance Group, now operating as MS Transverse, was established in 2018 by co-founders Erik Matson and Dave Paulsson. The venture was initially supported by Virgo Investment Group. The founders brought extensive experience to the new company; Matson has a 30-year background with major P&C carriers like AIG, Munich Re, and Allianz, focusing on building profitable MGA-centric operations. His career has centered on specialty insurance program development, underwriting, and reinsurance structures. This background was instrumental in shaping Transverse's strategic direction.

The company operates as a hybrid fronting carrier in the property and casualty (P&C) insurance sector. Its business model is designed to connect managing general agents (MGAs), program administrators, and reinsurers. Transverse provides the licensed and rated insurance paper—on both an admitted and an excess and surplus (E&S) basis—that enables MGAs to underwrite domestic U.S. risks. A key differentiator in its model is the retention of a portion of the risk, which aligns its interests with those of its MGA and reinsurance partners. This structure allows partners to access primary layers of U.S. insurance risks and facilitates connections between highly-rated MGAs and reinsurance capital, including from alternative sources like insurance-linked securities (ILS) funds. Revenue is generated from fronting fees and income derived from its underwriting activities.

A significant milestone occurred in August 2022, when Mitsui Sumitomo Insurance (MSI), a subsidiary of the global insurance giant MS&AD Insurance Group, announced its agreement to acquire Transverse for approximately $400 million. The acquisition was completed in January 2023, after which the company began operating under the trade name MS Transverse Insurance Group, LLC. This strategic acquisition was intended to expand MSI's footprint in the rapidly growing U.S. MGA market and provide Transverse with enhanced financial strength and greater access to new product lines and distribution opportunities. Following the acquisition, AM Best upgraded Transverse's Financial Strength Rating to A (Excellent).

Keywords: MS Transverse, hybrid fronting carrier, property and casualty insurance, P&C programs, managing general agents, MGA, program administrator, reinsurance partnerships, admitted insurance, excess and surplus lines, E&S insurance, risk retention, Erik Matson, Dave Paulsson, Mitsui Sumitomo Insurance, MS&AD, specialty insurance, insurance-linked securities, ILS capital, Virgo Investment Group, U.S. insurance market