Revau Advanced Underwriting has unveiled two strategic partnerships within two days. 

On May 12, the managing general agent (MGA) announced a merger with two companies based in the United States. The next day, it confirmed another merger with a wholesale broker based in Quebec. In both cases, the leaders of the firms joining Revau are also becoming members of its management team. 

First merger 

The two MGAs involved in the first transaction are Brazos Specialty Risk Insurance (BSRI), specialized in transportation insurance, and Twenty Mile Insurance Services, which provides liability solutions for the construction sector. 

The teams of both wholesale brokers will remain in place. Tom Spitalny, president of BSRI, and Christopher Polk, president of Twenty Mile, will continue to play key roles in the combined company. 

“This is a major milestone for Revau, marking our evolution from an ambitious regional MGA to an industry leader now operating beyond Canadian borders,” says Jean-François Raymond, president and CEO of Revau, in the press release annnouncing the news. 

In an interview with Insurance Portal, Raymond elaborated further. He mentions that the two firms, based in Southlake in the Dallas, Texas area, had some common shareholders. Polk was the CEO of both companies. “There were links between the two businesses, which is why we are acquiring them at the same time, but they operated in very different markets,” he says. 

The transaction involves both cash and share exchanges, making the management teams of Brazos and Twenty Mile shareholders of Revau. “That was very important to us,” he says. 

“They are becoming shareholders of Revau as a whole, both in Canada and the United States. We like having employees who are also shareholders, and this is the model we use in our acquisitions to retain management,” adds Raymond. 

Lengthy negotiations 

The two wholesale brokers underwrite commercial risks in approximately 40 jurisdictions across the United States, according to Revau’s CEO. While both companies are headquartered in Dallas, their employees are spread out across the country. 

Raymond first met them in 2023 at a conference for MGAs in the United States organized by the Target Markets Program Administrators Association. “The real discussions began in the summer of 2024, and we submitted our letter of intent in October,” says Jean-François Raymond. 

“We were looking for partners with the same hybrid platform approach, enabling both brokerage distribution and wholesale risk placement. We want to develop our platform in the United States the same way we did in Canada.” 

Thanks to Revau’s use of the Guidewire system, the American subsidiary will benefit from the expertise of its Canadian colleagues to implement the system and update its underwriting platform. 

This is Revau’s eighth strategic transaction since establishing its partnership with Novacap Financial Services in 2020. The previous deal was announced in May 2024 and involved FBA Solutions, a company specialized in legal expense insurance. 

Relocating to Texas 

Jean-François Raymond will become CEO of the new U.S. division. Starting mid-June, he will relocate with his family to Dallas. “This was not announced in the press release. Employees were informed on Tuesday, May 13, so now I am comfortable saying it,” he says. 

Vice-president of operations since May 2024, Rahim Tejani, who joined Revau in 2023 and is based in Toronto, will become president of Revau in Canada. Tejani was also president of Revau Surety. Raymond will remain CEO of Revau in Canada. 

The transaction with the two U.S.-based MGAs was only finalized on Thursday, May 8, despite months of discussions between the parties. “Both teams will remain in place there. The only change is that I will be working in Dallas. Obviously, if the deal had fallen through, I would not be moving,” he says. 

After discussing with Novacap, Jean-François Raymond is giving himself five years to establish the Revau brand in the United States. 

Second merger 

The second merger, announced by Revau on May 13, involves Tecassur, whose offices were in Dorval, Quebec. Tecassur is a wholesale insurance broker specialized in placing complex risks. 

Éric Perry, president of Tecassur and sole leader since his associate Richard Lavoie’s departure, becomes national vice-president and shareholder of Revau. He has over 29 years of experience in underwriting, brokerage, and management at the national level. “He will be responsible for the risk placement division across Canada,” says Jean-François Raymond. 

Revau had already acquired part of Tecassur’s portfolio in 2019. “At that time, we purchased the underwriting authorities they had been granted by insurers. Since then, they had focused on risk placement as a wholesale broker,” he explains. 

Tecassur maintained its relationships with its insurer partners. “We did not have a risk placement division at Revau, and this transaction allows us to establish one,” continues Raymond. 

As an MGA, Revau can issue policies thanks to underwriting authorities obtained from various insurers. At Tecassur, underwriting was handled by the insurer. 

The advantage for brokers using Tecassur’s services was the same as with an MGA: gaining access to insurers with whom they did not have agreements. “For commercial insurance, they have access to a wide variety of generalist insurers. For them, it is advantageous to have an intermediary like Tecassur, rather than receiving submissions from a large number of brokers,” notes Raymond. 

In its press release, Revau specifies that “the integration process is already underway, and all partners can expect continuity of operations throughout the transition.” For now, Raymond cannot say whether Tecassur’s employees will report to Revau’s office in Terrebonne or the downtown Montreal office. 

When asked if other transactions are planned, Jean-François Raymond jokes, “No, there won’t be any more this week. These will be the only two.” 

Novacap remains the majority shareholder of Revau, with the remaining shares held by active employees. The two MGAs based in Texas had a combined premium volume of approximately 200 million US dollars. 

With these transactions, Jean-François Raymond estimates the premium volume underwritten through his group at approximately 650 million Canadian dollars.