JPMorgan Chase & Co. is spearheading a nearly $1.9 billion refinancing initiative for Trucordia, marking a broader trend where traditional financial institutions are increasingly stepping in to refinance debt originally secured by insurers through private credit firms.
Sources familiar with the matter told Bloomberg that JPMorgan is premarketing a first-lien loan of approximately $1.89 billion for the Utah-based insurance brokerage. This refinancing aims to replace the company's existing private debt, which was priced at 5.5 percentage points over the benchmark. Notably, BlackRock Inc., AB Private Credit Investors, Morgan Stanley, and Blue Owl Capital Inc. were among the lenders involved in the original private credit financing, as per regulatory filings.
Despite the shift towards traditional financing, private credit remains a component of the transaction. Blue Owl is reportedly leading a second-lien financing of about $548 million for Trucordia, formerly known as PCF Insurance Services, according to an individual familiar with the matter.
Representatives from JPMorgan and Blue Owl declined to comment on the matter. Requests for comment from BlackRock, AB Private Credit, and Morgan Stanley were not immediately returned.
This move aligns with a broader trend where Wall Street banks are capitalizing on their ability to offer more competitive pricing through first- and second-lien structures, as opposed to private credit's more expensive unitranche loans. For instance, Alera Group Inc., an insurance and financial services firm, recently refinanced its private debt with banks, achieving a reduction of approximately two percentage points in borrowing costs. Similar to Trucordia, private credit was involved in Alera's riskier second-lien financing.
In a related development, JPMorgan also priced a $1.27 billion term loan to refinance CFC Underwriting Ltd.'s existing debt from a direct lender. The new debt was priced at 3.75 percentage points over the base rate, marking a 1.2 percentage point reduction compared to the existing loan from KKR & Co Inc. and Blackstone Inc., according to regulatory filings.
As of March, speculative-grade insurance brokers had approximately $86 billion of rated debt outstanding, according to Moody’s Ratings. While data for the more opaque private credit markets is less readily available, companies like Davies Group, Foundation Risk Partners, Galway Insurance Holdings, and World Insurance Associates have previously tapped direct lenders for financing.
Trucordia's recent refinancing efforts come on the heels of several strategic acquisitions in 2025, further solidifying its position in the insurance brokerage sector. In January, the company acquired the insurance business of CADA Insurance Services, expanding its presence in Louisiana with new offices in Baton Rouge, Chalmette, Gretna, and Kenner. CEO Felix Morgan expressed enthusiasm about the acquisition, stating, "The CADA Insurance team is a welcome addition to Trucordia. They share our passion for building long-term relationships and partnering with clients to identify and best meet their insurance needs."
Additionally, Trucordia acquired the insurance business of Rusty Healy Insurance Agency, based in Madison, Mississippi. Chief development officer Brooke K. DeWyze highlighted the alignment of values, noting, "They share our dedication to client-centric service and pride themselves on establishing long-lasting relationships that lead to ongoing opportunities to help clients within their community meet their insurance needs."
Meanwhile, in February, the company further expanded its portfolio by acquiring the insurance business of Boater’s Insurance Agency, a firm specializing in marine insurance solutions based in the San Francisco Bay Area.
These acquisitions are part of Trucordia's broader strategy to enhance its service offerings and expand its market presence. It has a workforce exceeding 5,000 professionals nationwide.
