Bermudian niche reinsurer Citadel Re is to restructure US subsidiary American Millennium Insurance Company (AMIC) into three distinct business divisions.
AMIC will now be split into a current and prospective business unit, a financial and regulatory reporting unit and a run-off unit which will be responsible for the management of problematic and discontinued MGA business and claims.
Gary Hall has been appointed senior vice president and chief underwriting officer and will run the current and prospective business unit.
Hall previously served as president and CEO of Great Falls Insurance Company, also part of the Citadel Risk Group, parent company of Citadel Re.
He moved to Eastern Alliance Insurance in 2017 when Great Falls’ renewal rights were sold. In his earlier career he oversaw the Boston and Hartford offices at CNA Financial before becoming senior vice president of Arcadia Insurance, where he was responsible for underwriting and field operations.
AMIC is focused on the transportation industry and, according to its website, insures a “large market share” of New Jersey’s taxis and limousines. It is also a niche writer of trucking business in the state.
The divisional split follows last month’s downgrade from AM Best, which saw AMIC’s financial strength ratings move from B++ to C++ and its credit ratings drop from bbb- to b+.
According to statutory filings, AMIC’s capital and surplus dropped from $9.03mn to $5.77mn over the first six months of 2020.
AM Best’s rating actions followed Q2 results showing year-to-date underwriting and operating losses that were “well outside of management’s expectations”.
In addition to owning insurance entities, Citadel Risk has a rent-a-captive facility and provides back-office services to the (re)insurance sector as well as run-off services.