ReAlign launches surplus lines insurer

ReAlign Insurance Holdings has announced the formation of Summit Specialty Insurance Company, a new surplus lines insurance carrier that will be headed by former Ironshore and AIG specialty casualty executive Timothy McAuliffe.

Timothy McAuliffe - ReAlign Capital Strategies

Nebraska-domiciled Summit Specialty, which is a wholly owned subsidiary of ReAlign, has received the necessary regulatory approvals to operate as a surplus lines insurer and expects to commence underwriting activity in late 2020.  

The new carrier is working to achieve authorisation to begin underwriting in markets across the country in early 2021.

ReAlign explained that the launch reflects its strategic plan to expand its specialty insurance holdings in attractive markets across the US. Summit Specialty joins National Lloyds and American Summit in ReAlign’s portfolio of companies.

Summit Specialty head McAuliffe also serves as president of the other two wholly owned subsidiaries. 

McAuliffe joined National Lloyds and American Summit in February this year, after leaving his role as Ironshore programs president in early 2019. ReAlign completed a deal to take over the two Dallas-based specialty personal property insurance companies from Align Financial Holdings in July. 

Grant Lippincott, president of ReAlign, commented that the formation of the surplus lines business underscores its strategy to develop a leading domestic program underwriting platform.

“We are focused on leveraging our expertise, financial resources and relationships to develop specialty insurance programs in markets where there is considerable demand for alternative capacity,” said Lippincott. “We look forward to introducing new product lines and serving a broad range of program administrators and agents across the nation.”

ReAlign is an insurance holding company formed by ReAlign Capital Strategies and private investment fund MGI Insurance Holdings to buy and own broadly licensed admitted and surplus lines insurance companies focused exclusively on the specialty program insurance marketplace in the US.

ReAlign Capital Strategies was formed by Align Financial Group and Rockbrook Advisors in 2018.

The formation of Summit Specialty is the latest launch to target the burgeoning E&S market. 

At the end of September Fortegra formed a new E&S insurer to take advantage of hardening rates and further the Tiptree-owned US specialty insurer’s goal to carefully underwrite and expedite new program business.

Another example came in June when California-based specialty insurer Palomar launched an E&S unit

In addition, as this publication revealed in September, Sirius Group has been working on a new E&S insurance platform that it hopes to go live with later this year.