Ambac Financial Group, Inc. (NYSE: AMBC) (“Ambac”), a financial services holding company, today announced a strategic partnership via a minority ownership stake in Embrace Partners (“Embrace”), a tech-driven managing general underwriter (MGU) of specialty commercial insurance and surety. The Embrace platform also consists of a diversity, equity and inclusion (DE&I) consulting firm. Terms of the transaction were not disclosed.
Embrace is led by industry veteran David Cayemitte, who will remain the majority owner. Embrace will trade on Cayemitte’s commitment to deliver a compelling, tech-driven risk management platform, incorporating insurance and surety solutions for brokers and clients to advance parity goals.
“David Cayemitte is both a visionary and a tactician, having launched The Cayemitte Group, an insurance brokerage MBE, in 2005,” Ambac CEO Claude LeBlanc said. “He is a well-respected thought leader, dedicated partner and active participant in the minority business enterprise (MBE) marketplace. We are excited about this strategic partnership and investment in Embrace and proud to support this mission-driven company.”
Embrace will offer educational services through the Minority Business Development Institute, a 501(c)(3) corporation that Cayemitte founded in 2010 to provide economic opportunities for minority-owned businesses. MBDI-trained contractors have been sourced by companies and government agencies that require diverse spend for development projects, including the Dormitory Authority of the State of New York (DASNY).
“David and his team are laser-focused on helping underserved populations—specifically, minority- and women-owned businesses and disabled veteran-owned businesses—participate in the construction industry,” said Michael Clay, Senior Director of the Opportunity Programs Group and Co-Leader of Procurement for DASNY. “They provide the training, capital access and bonding needed in order to bid on projects as a primary contractor, which is a game-changer. Partnering with Ambac will enable Embrace to offer these crucial programs to contractors across the nation.”
Cayemitte, a former executive at AIG, The St. Paul Companies and Travelers, said: “Diversity has become a top priority for leading organizations both in the public and private sectors. Insurance procurement and DE&I-focused programs are formidable mediums for firms to advance their Environmental, Social and Governance (ESG) commitments. The Embrace platform offers the opportunity to spend responsibly in exchange for excellent products and services.
“The formation of Embrace Partners marks a momentous achievement within the insurance industry. We are leading a broader movement to bring economic opportunities to historically marginalized groups. One of our primary goals is to increase participation by minority- and women-owned business enterprises and service disabled veteran-owned businesses in public projects through access to training, working capital and insurance placement. Our collective efforts seek to balance a moral view with a business objective of aligning corporate America in a way that will help to bridge the gaps of inequality.”
Embrace’s operating platform will adopt a “digital-first” mindset, leveraging technologies such as data science, artificial intelligence, and cloud computing to put efficiency and customer experience at the forefront of its model.
Ambac Financial Group, Inc. (“Ambac” or “AFG”) is a financial services holding company headquartered in New York City. Ambac’s core business is a growing specialty P&C distribution and underwriting platform. Ambac also has a legacy financial guaranty business in run off. Ambac’s common stock trades on the New York Stock Exchange under the symbol “AMBC”. For more information, please visit www.ambac.com.