ProSight Specialty Insurance Group, Inc. is also known as ProSight Global. The company is a private insurance company based in the United States. It has gained a great deal of attention because it has recently gone public and there has been an upsurge in interest for investors eyeing the stock performance. Here are 20 things that you didn’t know about ProSight Global which might be worth your consideration.
1. There has been some confusion about the name
There are hundreds of thousands of businesses in the world today and some of them have names that are very close. There has been some confusion about the name ProSight Specialty Insurance Group, Inc and ProSight Global, and some potential investors have wondered if the two are separate companies or the same entity. To clear this up, ProSight Specialty Insurance Group, Inc. is also known as ProSight and the legal name is ProSight Global, Inc. These three names are used interchangeably.
2. ProSight has only been in business for a decade
ProSight Specialty Insurance Group, Inc. was founded by Joseph J. Beneducci in 2009. It started in Morristown, New Jersey, and the headquarters for the company is still located in this city. Beneducci is the founder, Chairman, Chief Executive Officer and President of the company. When ProSight was first listed as an official business it started with teh name ProSight Specialty Insurance Holdings, Inc. and the name was changed to ProSight Specialty Insurance, Group, Inc. in November of 2010.
3. The company grew quickly
ProSight quickly grew and opened a total of five offices which are located in the United States and the United Kingdom, giving it international status. In addition to the Morristown, New Jersey location, there are offices in New York, New York, Glendale, California, and in London, England, UK. At one point the company had achieved an A financial rating, which decreased slightly to a current rating of A- which is still good.
4. Beneducci had prior leadership experience
Before founding ProSight, Beneducci served in an executive leadership position at a different insurance company. He was appointed as the Chief Executive Officer at Fireman’s Fund Insurance Company in January of 2007. He served in the post until June of the same year. It’s assumed that he left Fireman’s Fund to begin work on his own startup company which opened its doors just two years after he left his post.
5. ProSight has received positive media attention
Just five years after opening its doors, ProSight Specialty made it to one of the most prestigious lists in the nation. The company ws featured in 2014 as one of the fastest-growing private American companies by Inc. 5000. It was included on their list of the rapidly growing companies with a ranking of 3,204. At the time, teh annual revenue that ProSight was generating was $443.5 million for the final calculations for 2013. They employ approximately 425 staff members in the organization.
6. ProSight Global, Inc. went Public
It was big news when ProSight Global made the announcement that it was going public. They announced the pricing for the Initial Public Offering on July 24, 2019. The company offered 7,857,145 shares of common stock which were priced at $14 per share. The ticker symbol for ProSight on the New York Stock Exchange is PROS. Sale of the stock opened on July 25, 2019, with a closing of the offering on July 29, 2019.
7. Big Finance companies led the book-running
The IPO book-running management was co-lead by a large number of the larger finance companies. Goldman Sachs & Co. LLC along with Barclays acted as joint lead Book-running management. They were joined by Bank of America Merrill Lynch, with co-management by Bruyette & Woods, Dowling & Partners, Keefe, SunTrust Robinson Humphrey & Citizens Capital Markets for the Initial Public Offering. The process went smoothly for ProSight Global, Inc.
8. ProSight is educational
One of the more unique differences that have been noted about ProSight is that their staff works with clients to develop the most appropriate solutions for improving their business. The staff explains how various products and solutions have the potential to add value to the companies. ProSight maintains a focus upon specified niche industries with differentiated underwriting. The goal of ProSight products and services is to enhance operating performance for each client. AM Best has assigned an A/A- rating consistently for ProSight which means that they have an excellent rating within the industry. This boosts confidence in potential clients and it has significantly contributed to their growth and expansion as a provider. It’s unique that ProSight offers an explanation of how products will enhance operational performance.
9. ProSight offers a 30-day option for underwriters
ProSight offered 4.3 million shares of its common stock for sale at its IP) with selling stockholders offering an additional 3.5 million shares. In addition, the selling stockholders made a provisional 30-day option for underwriters for the purchase of up to 1 million shares of the common stock at the IPO price with an additional provision of the subtraction of the underwriting discount.
10. ProSight streamlines through a direct sales platform
ProSight Specialty Insurance launched a platform that allows prospective customers to use a user-friendly application that streamlines the purchasing process. This signified the company’s entrance into a more modern mode of conducting business. In addition to offering an easier way to purchase products, it also sets ProSight up to launch other lines of business, using the same platform. It’s just one of the ways that the company is modernizing its operations and getting onboard with the new technology available for streamlining their services.This is a more convenient approach for some consumers who don’t have the time to come into a location for consultation and enrollment.
11. ProSight offers DJ insurance with added value
One of the niche industries that is served by ProSight is the DJ market. They offer DJ insurance for live entertainment professionals in need of insurance. The company currently represents 50 out of the top DJs throughout the world. They maintain a customer-centered approach for serving this clientele with this product that has been offered since 2011 through ProSight Direct, which was formed to address teh individual needs of clients within specific niches, inclusive of a build of the culture, technology, the underwriting process, and the handling of claims, in a client-centric manner.
12. They’re expanding to smaller segments
ProSight is aware of the fact that within the DJ community there is an underserved population. The ProSight Direct platform has been geared towards addressing the needs of the underserved populations within the DJ community. These are the smaller DJs who may not be insured, nor even be aware that a specialized product is available to them. This represents a largely untapped market within the industry as a whole and it’s one that ProSight is going into.
13. ProSight is on board with a changing world
Beneducci has indicated that the leadership of ProSight is fully aware of the need for the company to evolve with the changes in consumer demands and expectations. This goes far beyond the traditional contract focused business process which was formerly set in place. There is only one way to fully address the changing needs to remain competitive and that is to understand the culture of the potential clients within the niche market to be served.
14. Why ProSight maintained a low-profile
ProSight has maintained a low profile regarding the innovations that it’s made in the company’s technology systems. This has been intentional as the top priority has been to focus on profitability as an insurer. They’re on track to hit the $900 million mark in premiums. They’re building the premium volume as a startup in order to establish a firm foundation for expansion and the launch of ProSight Direct was a step in the right direction.
15. ProSight is laying low for good reason
The CEO of ProSight shared his insights into the commercial insurance business and he observed that from his past experience, insurance companies who set their focus on technology and were recognized as such, created a division that was difficult for potential investors to navigate. He learned early on in the business that when an insurer presented their main focus on innovation and technology, investors were not as likely to make the investment, hence, his decision to not highlight the innovations which ProSight uses in the tech arena and the positive focus which highlights the profitability of the company over the tech. When explained in this way it makes excellent business sense from a leader who is looking towards expansion through investment dollars.
16. Breaking away from tradition is difficult
Beneducci acknowledges that bucking tradition has its downside. It’s a process that must be engaged in delicately because there is always the risk of alienating distribution partners. The traditional insurers have a very hard time getting away from their old ways of conducting business, but there are better ways to accomplish the same goals with even greater efficacy. ProSight is an insurer that is breaking away from some of the traditional methods in favor of those which make better business sense and answer to the demands of their target markets.
17. ProSight Leadership focuses on small details
In a review of the insights offered by Beneducci, we couldn’t help but notice that his analytical eye doesn’t miss a thing when it comes to doing business. He’s analytical of current trends in market behaviors as well as being in touch with the ever-changing trends in consumer demands and expectations. It is his keen business sense and eye for detail that catches the nuances which can make a huge difference in the perception of the company. The digitization of the company across the gamut of the process can actually streamline the process in which one division handles the issuance of a policy and a totally different entity handles underwriting and processing of claims.
18. ProSight seeks to be different
We’ve gathered that ProSight is not as focused upon sharing the fact that they are innovative and modern in their technology, although they are. They seek to be different by understanding what their customers are faced with and offering a more customized product to truly meet real needs, versus a more general or generic type of coverage. ProSight even hires people with professional experience in the niches they serve to gain a better understanding of the needs of their clients. This is part of the beauty of the Direct Sales approach which cuts out interference from a middle layer of associates.
19. ProSight Global Inc is taking a controlled growth approach
There is a huge market for each of the niche industries served by ProSight Global, Inc. and these are well-researched topics and this is one of the reasons why ProSight is expanding its operation to reach out to the smaller and medium-sized audience of potential customers. With this in mind, Beneducci realizes that the best practices for ProSight include a slow and steady growth to avoid making mistakes in serving clientele due to overloading staff and present capacity. This is a brilliant approach to business and they’re a company that is shoring up the foundation before they hit the accelerator to kick off a more massive expansion of services.
20. ProSight Global Inc is a company to keep your eye on
From an investor’s point of view, ProSight Global Inc. is the new kid on the block, but there are a few very good reasons to keep them on the radar. The leadership is keenly attuned to the changing market trends but is taking their growth acceleration at a reasonable pace in order to focus upon profitability and reinforcement of the infrastructure. This is a sound move. From all indications, the rapidly growing company is gearing up for something big that could translate into a massive growth period and they’re certainly a company to keep your eye on.