Propeller Streamlines Surety Bonding with Federato

Propeller needed a scalable platform that could keep their underwriting operations organized, and power their industry-leading bond portal for agents. Federato offered a flexible platform and a high level of service, helping Propeller get deployed quickly and scale to meet growing demand.

Propeller first rolled out Federato for their underwriter operations, in which most bonds move through straight-through-processing while underwriters handle the more complex submissions. Soon after, Propeller deployed Federato’s Partner Portal to power their white-label bond portal for agents.

In its first month of business, Propeller wrote 12 bonds. Since deploying on Federato, Propeller has scaled rapidly. Today, the company is writing up to 400 per day and is on track to process over 70,000 transactions in 2025.

Their partner network has expanded from 50 agencies to over 9,000 nationwide. For those agent partners, Propeller has reduced the time it takes them to write a bond by 93%. 

In 2024, Propeller’s largest capacity provider, Arch, made a strategic acquisition of the company.

“We’re extremely proud of the progress we’ve made on our mission so far. It all goes back to the trust we’ve built with both our capacity partners and our agency partners. We wouldn't have that trust if we didn't have a foundation in place that we can rely on to power our growth, keep us moving quickly and make it easy to do business, and Federato provides that foundation.” 

– Chris Kolger, Co-CEO, Propeller Bonds

Key Results:

• 93% reduction in time to write and deliver a bond from 30 minutes to 2 minutes
• 1,500x increase in production volume, from 12 bonds per month to 400 per day
• 70,000+ transactions expected for 2025
• 180x increase in distribution, from 50 to 9,000 partner agencies
• Acquired by Arch, their primary capacity provider, in 2024