Insurance Underwriter Achieves Unheard-of 70% Margins Through Strategic IT Partnership
CLIENT NAME:
Arden
INDUSTRY:
Insurance
PROJECT LENGTH:
Managed Service
TEAM SIZE:
2
Technologies:
Client: Arden
Insurance Underwriter Achieves Unheard-of 70% Margins Through Strategic IT Partnership
Can strategic IT be the foundation for 5X growth and PE acquisition? For a tech-forward firm like Arden, yes.
When insurance startup Arden grew from 10 to 30 people, their technology infrastructure collapsed. File systems crashed weekly, leaving employees unable to work for hours. Security score: 9 out of 100. Quote-bind email accuracy: 90%, meaning 1 in 10 quote-bind emails cost them money and reputation. Some days, not a single underwriter could process business.
And they couldn't find a way out that would let them keep growing. Said Arden's first employee and current Chief Compliance Officer, Eric Juarez: "We took two serious shots at it. Two different groups took a shot at trying to figure out how to automate that letter, and obviously unsuccessfully."
After multiple failed technology and IT vendors who couldn't grasp either the MGU business model or Arden's vision for outsourced infrastructure, Brian met Tenger Ways founders Daniel Keith and Adrian Shulman. Within two weeks, they solved Arden's 18-month file crisis—but that was just the beginning.
Tenger rebuilt everything: migrating from a single overloaded server to cloud-based Azure infrastructure, implementing enterprise security, automating critical systems. This became the basis for Tenger Thrive: managed services blended with IT strategy. Software licenses passed through at cost (not industry-standard 150% markup). Guaranteed 15-minute response times 24/7 (not typical 8-15 hours). And all sitting on top of strategic thinking prioritizing long-term client success.
"How do we set it up so we're only successful if our clients are successful?" explains Adrian Shulman. "It's not just about the organization, it's about the employees who deliver value daily."
The relationship evolved organically as each grew into a more profitable, more specialized, and more capable firm.
"We hired them to evaluate our infrastructure, then asked them to build it. They managed it so well we asked them to become our managed services provider" says Eric Juarez.
And that relationship has led to further innovations and further results. To solve failing legacy automations, Tenger built the "Arden Tech Engine", which automates quote-bind emails, jumping accuracy from 90% to 99%. More critically, underwriting time plummeted from 1 hour 45 minutes to just 20 minutes per file. Most underwriting firms doing Arden's volume have 300 to 500 employees; Arden has 70.
The Numbers Tell the Story
Three years after engaging with Tenger Ways, Arden has achieved:
- Revenue: 5X growth
- Operating margins: 70%+ (industry-leading)
- Headcount: 30 to 78 (while similar MGAs need 200-300 employees)
- Security score: 9 to 73
- System downtime: Zero
- Database growth: <1TB to 4TB
"If you had seen us two years ago before Tenger Ways got involved," Brian told FTV Capital during acquisition, "there's no way you would have acquired us."
Eric Juarez summed it up with his advice for other fast-growing professional firms: "Run toward Tenger!"
Key Moments
The Introduction Moment
After multiple failed IT vendors who couldn't grasp either the MGU business model or Arden's vision for outsourced infrastructure, Brian met Tenger Ways founders Daniel Keith and Adrian Shulman through a strategic introduction.
The Introduction Moment
After multiple failed IT vendors who couldn't grasp either the MGU business model or Arden's vision for outsourced infrastructure, Brian met Tenger Ways founders Daniel Keith and Adrian Shulman through a strategic introduction.
The Deal Clarity Moment
'Once we started to 5x revenue, it became clear: Tenger would be technology partner in perpetuity as a strategic managed services firm' - Eric Cohen
The Deal Clarity Moment
'Once we started to 5x revenue, it became clear: Tenger would be technology partner in perpetuity as a strategic managed services firm' - Eric Cohen
The Moment of Trust
Within two weeks, they solved Arden's 18-month file crisis—but that was just the beginning. After multiple failed IT vendors, Tenger Ways founders Daniel Keith and Adrian Shulman immediately grasped both the MGU business model and Arden's vision.
The Moment of Trust
Within two weeks, they solved Arden's 18-month file crisis—but that was just the beginning. After multiple failed IT vendors, Tenger Ways founders Daniel Keith and Adrian Shulman immediately grasped both the MGU business model and Arden's vision.
The Eureka Moment
'How do we set it up so we're only successful if our clients are successful?' explains Adrian Shulman. This philosophy became the foundation for Tenger Thrive: managed services blended with strategic IT thinking. One of the many outcomes: our security rating jumping from 9 to 73.
The Eureka Moment
'How do we set it up so we're only successful if our clients are successful?' explains Adrian Shulman. This philosophy became the foundation for Tenger Thrive: managed services blended with strategic IT thinking. One of the many outcomes: our security rating jumping from 9 to 73.
The ROI Moment
'If you had seen us two years ago before Tenger Ways got involved, there's no way you would have acquired us,' Brian told FTV Capital during acquisition. Revenue grew 5X with 70%+ margins while competitors need 300-500 employees.'
The ROI Moment
'If you had seen us two years ago before Tenger Ways got involved, there's no way you would have acquired us,' Brian told FTV Capital during acquisition. Revenue grew 5X with 70%+ margins while competitors need 300-500 employees.'
"If the PE firm had seen us two years ago before Tenger Ways got involved, there's no way they would have acquired us .... I don't see ever owning or wanting to own the IT function. I don't want to own the infrastructure. I don't want to have to worry about who's doing all that. I want to have the best in class people do that for me forever- and that’s Tenger Ways."
