CEO Today Global Awards

CEO Today Global Awards 2020 USA 75 www.ceotodaymagazine.com With a combination of strong corporate heritage and expertise in the Insurance and FinTech spaces, together with the multiple benefits of the SPAC model, Insurance Acquisition Corp. (NASDAQ: INSU), a special purpose acquisition company (SPAC), and its sponsor team at Cohen & Company, including Daniel G. Cohen, the founder of Cohen & Company, and John Butler, raised $150.65 million in Insurance Acquisition Corp.’s IPO to acquire a business providing insurance or insurance related services. A SPAC is a publicly listed acquisition vehicle through which a sponsor team raises a blind pool of cash to acquire an operating company. SPACs are an attractive capital solution allowing investors to coinvest ‘publicly’ side-by-side with best-in-class sponsor teams and providing investors access to top -tier management teams that are highly incentivized to generate excess value through sourcing private investment opportunities. SPAC investors also benefit from downside protections, a key distinguishing factor compared to classic private equity models. A significant economic and structural benefit of a SPAC is increased upfront liquidity as compared to a standard IPO. SPACs present a unique opportunity for liquidity with meaningful upside and a flexible transaction structure which is tailored to seller needs. First, SPACs have a defined timeframe in which they must complete an acquisition (or business combination), typically 18-24 months. This is much shorter than the typical life of a private equity fund which can be more than 10 years. Consequently, SPAC investments are free from the liquidity limitations typically associated with private equity investments. In addition, since SPAC’s are publicly listed companies, investors can have complete control over the length of their investment. This is significantly different from a typical private equity structure where the private equity firm controls the timing of any distributions. Another benefit of a SPAC is that downside risk is significantly limited. Funds raised from non-sponsor investors during the IPO are held in an interest- bearing escrow account for the time period provided for finding and completing an acquisition. If a SPAC is unsuccessful in acquiring an operating company, investors’ entire investment is returned. Finally, the SPAC model offers greater investor input into the target companies when compared to the typical private equity model. Investors are given the opportunity to vote on a target company presented by the sponsor team, and while the investors do not choose the deals, they are eligible for opting out of any target company while being reimbursed for the entirety of their investment held in escrow, plus interest. Insurance Acquisition Corp was founded in 2018 and is headquartered in New York City. Its sponsor, Cohen & Company, and its management team, possess a diverse knowledge and technical expertise in both the Insurance and FinTech spaces, as well as prior experience sponsoring successful SPAC vehicles such as FinTech Acquisition Corp. and FinTech Acquisition Corp. II. FinTech Acquisition Corp. II acquired International Money Express Inc., a remittance company, for $298.7mm. in July 2018 and FinTech Acquisition Corp. acquired payments company CardConnect Corp., for $455.2MM in July 2016. CardConnect was subsequently acquired in 2017 by First Data Corp. for $750MM. Additionally, Insurance Acquisition Corp.’s sponsor, Cohen & Company, and its affiliates have exhibited strong public market capabilities in the insurance sector. Cohen & Company has funded 60 different European insurance companies across 18 countries through several investment funds (for a total invested amount of 1.7B), invested $2.6 billion across 144 insurers in US/Bermuda since 2002, and possesses extensive experience with insurance companies in the public and private spaces. Cohen & Company manages approximately $2.7 billion in fixed income assets, managing an array of asset classes including senior debt, subordinated debt, surplus notes and corporate loans. Cohen & Company has more than 18 years’ experience in issuing debt to insurance companies. This breadth of experience provides in-depth industry, investing, financing and M&A knowledge, sources of propriety deal flow, and a network of third-party relationships that provide a competitive advantage in sourcing and evaluating businesses and acquisition opportunities in the insurance space. Firm Profile