Trean launches new E&S carrier Benchmark Specialty

Hybrid MGA and carrier platform Trean Insurance Group has formed a new excess and surplus lines subsidiary Benchmark Specialty Insurance Company, an Arkansas domestic surplus lines carrier that is seeking regulatory approval to conduct business throughout the US.

The new E&S unit is a subsidiary of Trean’s Kansas-domiciled subsidiary Benchmark Insurance Company, an AM Best A (Excellent) rated writer of specialty casualty program business. Benchmark Insurance Company is a multi-line stock insurer admitted in 49 states and the District of Columbia.

“Now that it has secured approval in its domicile state of Arkansas, Benchmark’s new E&S subsidiary is working to obtain the remaining regulatory approvals necessary to conduct business throughout the United States,” Trean said.

It added: “With admitted and non-admitted carriers, Trean Insurance Group companies have the capability to offer a full range of risk solutions to our program partners and general agents.”

Benchmark Specialty Insurance Company joins Benchmark Insurance Company, Utah-domiciled workers’ compensation and employers’ liability carrier American Liberty Insurance Company, and South Carolina-based workers’ compensation carrier 7710 Insurance Company as members of the Trean Insurance Group.

Wayzata, Minnesota-based Trean went public through an IPO in July 2020, raising over $160mn.

The Nasdaq-listed company’s share price closed down 1.8 percent in trading Monday, at $8.18, before the new subsidiary was announced.

The launch of Trean’s new subsidiary follows a number of other E&S launches this year, both by program fronting platforms and more traditional carriers.

For example, earlier this month fronting start-up Concert Group Holdings’ newly formed E&S carrier Concert Specialty Insurance Company secured an A- financial strength rating from AM Best as a hybrid fronting platform.

Other program focused-carriers to launch this year include Ambac’s Everspan, which has admitted and surplus lines subsidiaries.

Entirely new traditional E&S carriers have also been formed including Richmond National launching with $70mn of capital in October and Upland Capital Group launching with $200mn of backing from Newlight Partners in January.

That followed several start-ups and scale-ups already targeting the fast-hardening segment, including the rebooted StarStone US platform Core Specialty, Vantage, and the rebranded and repositioned Skyward Specialty.