Cat-focused property MGA heavyweight AmRisc has added new capacity for its national E&S commercial insurance program from hybrid fronting carrier Transverse backed by a panel of reinsurers, The Insurer can reveal.
Truist Insurance Holdings-owned AmRisc writes an estimated $1.5bn in annual premium covering catastrophe and specialty property insurance exposures, which is thought to make it the largest MGA in its market segment.
The E&S portion of its portfolio accounts for around two thirds of the total at just over $1bn of premium.
Depending on the program offering and market segment, the MGA can put down up to $300mn of capacity per risk on accounts with as much as $2.5bn total insured value (TIV).
Sources said the panel of reinsurers behind Transverse includes a cross section of Bermudian, domestic and European companies.
The Transverse capacity is thought to have been put together in conjunction with reinsurance intermediary TigerRisk and adds to a blue-chip panel of carriers behind AmRisc’s wholesale and retail offerings.
According to AmRisc’s website, its existing E&S panel includes Lloyd’s, Zurich’s Steadfast subsidiary, HDI Global Specialty, AIG’s Lexington, QBE, Axa XL’s Indian Harbor, Scor’s General Security Indemnity Company of Arizona, Old Republic and GeoVera Specialty.
The website also names State National’s United Specialty subsidiary as a paper provider. United Specialty has historically fronted for Nephila, among other alternative capital players.
AmRisc also has admitted capacity from American Coastal and Journey Insurance.
It is understood the MGA had been looking to add fresh capacity for some time, as it continues on its growth trajectory in a cat-exposed property market that has been hard in recent years.
Expanded capacity and stability
In a statement confirming the partnership, AmRisc chief market officer John Horton described the arrangement as innovative.
“Our active participation in the Transverse reinsurance program design expands the capacity and stability we can offer all our customers in this dynamic market,” said the executive.
Transverse CUO Ethan Allen said the tie-up is a “great validation” of the hybrid fronting carrier’s business model.
“Our active participation in the Transverse reinsurance program design expands the capacity and stability we can offer all our customers in this dynamic market,” he added.
AmRisc has a range of offerings targeting segments of the cat-exposed and specialty property insurance market with capacity of up to $300mn per risk for general property and habitational business as well as large accounts and public entity business.
Its general property and habitational offering targets a range of occupancies including real estate, apartments, condo associations, retail, offices, lessor’s risks, self-storage warehouses, hotels, restaurants and other general property classes.
It will entertain TIV of up to $2.5bn per account and can write on a full-value, primary or lead quota share capacity basis. The offering is distributed through its Waypoint wholesale platform, Chronos retail platform, AmRisc online and its Insurisk exclusive facility with sister company CRC.
In the large accounts and public entity segments AmRisc will consider TIV of $5mn to $2.5bn per account, also writing on a full-value, primary or lead quota share basis, through Waypoint, Chronos and Insurisk.
AmRisc targets TIVs in the $5mn to $100mn range in the builder’s risk segment, with available coverage of up to $200mn per risk up to a 36-month term on the possibility, distributing through its wholesale and retail broker channels.
In technical risks – industrial and manufacturing, the MGA will consider TIVs in the $5mn to $500mn range, writing on a full-value basis with capacity of up to $250mn per risk.
The Truist Insurance Holdings subsidiary also has an admitted product for Florida condo associations written on behalf of United Insurance Holdings’ American Coastal unit, and a force-placed foreclosed program for banks and financial institutions distributed through Waypoint only.
In addition to its segment-focused offerings, AmRisc has peril-specific products including a difference in conditions flood cover targeting a range of commercial properties from shopping centres and offices to apartments and assisted living facilities.
The program can provide up to $100mn per account, writing as a primary layer or excess of the National Flood Insurance Program up to $7.5mn per risk.
Its California quake offering targets real estate, apartments, offices and a range of other occupancies with TIV of up to $250mn per account, with primary or full-value up to $125mn per risk, distributed through Waypoint.
Big deal for Transverse…
Although details of the amount of capacity made available to AmRisc by Transverse and its reinsurance panel are not known, sources said that in terms of potential premium volume the deal is likely to be the biggest to date for Transverse, which officially launched in 2019.
As previously reported, the hybrid fronting carrier provides its services to the program, MGA and reinsurance markets.
It was launched by chairman and CEO Erik Matson and president and chief investment officer Dave Paulsson, with investment from Virgo Investment Group and partner investors.
It bills itself as an underwriting-focused operation which is also a global facilitator connecting and enabling partners through access to risk capacity and alternative capital on its admitted and surplus lines A- rated paper.
Transverse targets specialty P&C programs from MGAs and insurtechs, fronting for reinsurers and retaining up to 10 percent of the risk on its own balance sheet.
The company has added a number of programs across multiple segments since its inception and is understood to have a strong 2021 pipeline. So far it has been taking a selective and pragmatic approach to opportunities it is being presented with in the hardening market, with an emphasis on conservative due diligence.
It has partnered with a number of major reinsurers on programs, including Swiss Re, Munich Re and Everest Re. It has also diversified its relationships, including with collateralised reinsurers.