A new insurance company, whose executives say they are intent on becoming the largest independent career agent distribution group, is expected to be launched by a group of private equity investors next year.

The North Richland Hills, Texas-based insurance company, Insphere Insurance Solutions, will focus on what it calls the under-served small-business and middle-income market, offering offer life, health, long-term care and retirement products.

The company expects to work with 3,500 agents and have offices in more than 40 states. Agents and field managers will be actively recruited, according to a statement from the company.

Phillip J. Hildebrand

“Because of our size and scale, we expect to be able to offer significant infrastructure and support for field managers and agents including lead generation, training, compliance, marketing and technology capabilities,” said Phillip J. Hildebrand, who was named CEO of the new company. “We also believe our compensation will be unique, with an equity compensation component expected to be offered to both field managers and agents.”

The company’s focus is on an area of the insurance market that has had a “scarcity of distribution,” according to a statement from Hildebrand, who worked for New York Life in a number of leadership roles over a 30-year career ending in 2007.

“This market has been largely ignored by major insurance carriers and agents who have migrated to serve more affluent consumers,” Hildenbrand said.

The small-business and middle-income market has seen 37% decline in the number of insurance companies serving it, according to the new company.

The small-business and middle-market niche is the fastest growing segment in the industry, with more than 30 million middle-income households included, company officials said.

The company cited a study by the Life Insurance and Market Research Association (LIMRA) that found 44% of the middle market considered themselves under-insured on life insurance. Insuring this group would add $9.5 trillion in insurance and $17 billion in premiums, according to the report.

Insphere Insurance Solutions plans to enter into a marketing agreement with ING, a global banking and insurance company, to distribute the company’s term life and universal life insurance products, initially in a pilot basis within three months.

Hildebrand’s tenure at New York Life included several executive management positions, including head of distribution. He was named vice chairman in 2006. After retiring in 2007, he has since served in other advisory and executive positions in the insurance industry.

The investors backing the effort include affiliates of The Blackstone Group, Goldman Sachs and Credit Suisse.