Old Republic forms Sabbagh-led E&S insurer
Old Republic International Corporation has formed a new commercial excess and surplus lines (E&S) subsidiary, led by Ralph Sabbagh as president.
The new company, Old Republic Excess & Surplus (ORES), will focus its operations on specialized E&S products sourced primarily through the wholesale distribution channel.
Sabbagh has an underwriting record with 16 years of E&S experience. The executive was previously chief underwriting officer at Northfield Insurance Company, an E&S subsidiary of Travelers that he joined in 2015. He has also held roles at General Star and Gen Re.
Craig Smiddy, Old Republic International’s president and CEO, commented that the new unit “is a natural extension and continuation of Old Republic’s long, successful history of providing specialized commercial insurance and related products”.
He added: “With Ralph’s underwriting leadership and the full resources of Old Republic, we are confident that our new company will deliver long term value for our stakeholders.”
The Chicago-based insurer said that ORES will further expand Old Republic General Insurance Group (ORGIG)’s business with its distribution partners and customers.
Capital requirements will be extended by Old Republic from internally available capital funds, and operating infrastructure will be provided by ORGIG’s subsidiaries.
The new E&S division is the latest in a long line of new E&S carriers that have been formed in recent years at a time when the flow of business from the admitted market shows little sign of letting up and the segment’s pricing remains high.
For example, last week AM Best assigned an A (Excellent) rating to Federated Mutual Insurance Company’s new E&S carrier.