ALKEME Insurance Expands with Acquisition of Virtue Risk Partners

In a significant move within the insurance landscape, ALKEME Insurance has acquired Virtue Risk Partners, a managing general agent (MGA) based in New York. This acquisition not only marks ALKEME's first foray into MGA program underwriting, but it also signifies a strategic pivot from its previous focus on retail agency acquisitions. As the insurance industry evolves, understanding such acquisitions becomes crucial for consumers navigating their insurance options.

Virtue Risk Partners specializes in various lines of insurance, including general casualty, professional liability, environmental coverage, excess lines, and workers' compensation. With over 65 years of combined underwriting experience, Virtue provides tailored products and risk management services to contractors, consultants, and engineers across all 50 states. The financial terms of this transaction remain undisclosed, yet it reflects ALKEME's broader ambition to diversify its insurance offerings and deepen its expertise in specialty program underwriting.

ALKEME Insurance has seen remarkable growth, completing over 80 acquisitions since 2020 and operating from more than 90 locations across 30 states. In 2025, the company reported a remarkable 36.2% revenue growth, reaching total revenues of $252 million, positioning it as the fastest-growing brokerage in the nation among firms with revenues exceeding $150 million. This growth has largely come from retail agency acquisitions, marking a significant shift with the integration of Virtue Risk Partners.

Curtis Barton, CEO of ALKEME Insurance, emphasized the importance of this acquisition, stating, "Virtue Risk Partners represents a different kind of partnership for ALKEME, one that deepens our capabilities in specialty program underwriting and broadens the solutions we can bring to clients across the country." This sentiment highlights the strategic nature of the acquisition, as it is intended to enhance ALKEME’s service offerings significantly.

Joseph Valenza, the national director of programs for Virtue Risk Insurance Services, echoed this vision, noting that joining ALKEME provides opportunities for growth and innovation that align with Virtue's disciplined underwriting practices. This partnership aims to capitalize on the current expansion of the MGA sector, which has been growing at a faster rate than the broader property and casualty market.

According to industry analysis from S&P Global Ratings, the US MGA sector has more than doubled in size recently, driven by shifting market conditions that favor delegated underwriting structures. In 2023, the US MGA market surpassed $102 billion in premiums, achieving an annual growth rate of approximately 13%, compared to a 10% growth rate for property-casualty premiums overall.

Virtue’s operations sit within market segments currently experiencing favorable conditions for specialized underwriters. For instance, the environmental coverage market has shown relative stability, with carriers expanding offerings, which aligns with Virtue’s underwriting focus. Aon’s environmental market outlook has noted that while some sectors have faced challenges, areas like contractors' pollution liability have benefitted from increased capacity and more favorable terms.

Moreover, the demand for general liability and casualty lines remains elevated due to social inflation and rising claim severity. This trend underscores the need for MGAs with a proven track record of disciplined underwriting, even as other excess and surplus lines, such as property and cyber insurance, exhibit early signs of rate softening.

Owning an MGA introduces a different set of responsibilities compared to retail agency acquisitions. While retail acquisitions primarily generate distribution and commission revenue without the underwriting risks, MGAs manage delegated authority, which involves binding coverage and handling claims on behalf of capacity providers. This model demands strict adherence to underwriting discipline and consistent claims handling, areas that ALKEME has not previously managed on a large scale.

For ALKEME, this move into MGA ownership indicates a strategic shift aimed at capturing underwriting margins rather than relying solely on distribution fees. As the MGA landscape continues to evolve, the success of Virtue within ALKEME will depend significantly on the company’s ability to adapt its infrastructure to meet the rigorous demands of delegated authority reporting and claims oversight.

In summary, ALKEME Insurance’s acquisition of Virtue Risk Partners highlights a transformative step in the insurance industry, offering new opportunities for growth and specialization. As the MGA sector continues to thrive, consumers can expect enhanced offerings and more tailored insurance solutions in the marketplace.