Former NFP execs Flippen and Kiemnec set to launch FI brokerage Lion Specialty

Seasoned financial institutions (FI) broking executives Mark “Flip” Flippen and Natasha Kiemnec are working on a specialty retail brokerage called Lion Specialty, with the start-up targeting a 1 November launch initially focused on insurance company clients, The Insurer can reveal.

The new intermediary is expected to leverage AI tools to aid production and better harness advanced data and analytics across its platform.

And sources said it will also look to bring a level of “big broker” sophistication typically applied to large commercial accounts to what it believes is an underserved middle market segment, including technical expertise around coverage and the use of advanced analytics and modelling.

Flippen and Kiemnec were most recently at NFP for over three and a half years and had previously worked together at JLT Specialty USA, which they joined from Marsh and Aon respectively.

Flippen had been managing director of NFP’s FI division before leaving in March this year, while Kiemnec was a senior vice president at the firm.

Sources said that the aim is to build out a portfolio spanning the FI segment, with banks, investment management firms – including private equity, hedge funds and ILS managers – and insurance carriers all in scope.

The initial focus will be on insurers, however, with potential clients targeted typically in the $50mn to $2bn gross written premiums range, including regional mutual companies.

Lion Specialty is expected to look to create “communities” within its targeted segments through the use of social media branding, thought leadership and leveraging human capital in the nascent intermediary.

Lloyd’s capacity

It is understood that Flippen and Kiemnec have been meeting with Lloyd’s syndicates along with their reinsurance broker Howden Tiger to put together a facility and line slip for the initial offering based on a London manuscript form.

The access to London capacity is expected to be used as a differentiator when Lion Specialty looks to win insurance company clients.

The duo had put together a similar facility to target the segment in their NFP and JLT days.

Sources said the pair had built a $20mn-revenue practice group at NFP with a team of around 30 brokers and support staff.

At Lion Specialty, the expectation is that the duo will look to initially build a team of 10-15 over the next 18 to 24 months, before ramping it up to 30-40 to provide the scale and depth to allow the start-up to compete with large brokers such as Marsh, Aon and WTW.

At JLT they had also started to focus more on the insurance company book, and activated a cross-sell with colleagues on the reinsurance broking side of the house that had insurers as clients.

In addition to Howden Tiger, Flippen and Kiemnec have forged meaningful relationships with other reinsurance broking firms, including BMS Re.

Product lines

Product lines offered by Lion Specialty will span the retail base P&C lines for FIs, including the financial lines suite of D&O, E&O, as well as cyber, crime, fiduciary and EPLI – and general property and casualty, including property packaged with workers’ comp and general liability.

Sources said that the start-up believes it has the potential to get to $25mn to $50mn of revenue by targeting the main sub-categories of FI: banks, investment management firms and insurance companies.

However, once it gets to the lower end of that range, it is expected to begin exploring crossover into other segments, including real estate, broader private equity business and the high-net-worth space – where there are significant synergies around buyers.

That second phase would likely come 36 months or more after launch.

The initial phase targeting the FI market is understood to be self-funded by the launch management team, despite interest from a number of private equity firms in backing the venture.

Sources said that it is likely Lion Specialty would seek outside investment as it moves towards its second phase of growth and diversification of its portfolio.

Flippen and Kiemnec could not immediately be reached for comment on this article.