Marsh partners with Schinnerer Group and Nephila on new venture

Insurance broker Marsh and Schinnerer Group's underwriting management subsidiary have launched a new commercial insurance solution covering global property risks for US-based retail clients and backed by alternative capital.

Risks written by Alternus, will be underwritten and managed by Schinnerer and backed by a combination of Allianz Global Corporate & Specialty (AGCS), and alternative capital sourced by Nephila Capital.

Alternus is exclusively offered through Marsh, and will cover up to 10 percent of an insured’s entire property insurance programme offering limits of up to $200 million per programme, the company said.

"By drawing on a mix of traditional and non-traditional capacity, Alternus provides insureds with greater flexibility to manage an increasingly complex array of risks," said Christopher Schaper, CEO of The Schinnerer Group, the parent of Victor O. Schinnerer & Company. "Providing retail clients with direct access to alternative capital to cover their risk is a significant innovation."

Alternus also offers broad protection to a US-based organisation’s global property risks including multi-year coverage. Protection includes natural and man-made perils.

"The property and casualty industry must continue to evolve at a fast pace and this innovative risk transfer vehicle will be most appreciated by clients," said Bill Scaldaferri, CEO and president of Allianz Global Corporate & Specialty, North America.

"The launch of Alternus is a significant step in helping to transfer risk more broadly. Bringing this product to US-based commercial organizations is part of our commitment to expanding our overall footprint in North America," Scaldaferri added.

Nephila Capital co-founder Frank Majors added: "The insurance sector has become increasingly attractive to the investment community. Through Alternus, we have created a strategic and innovative structure that enables Nephila to give insurance clients choice and also offers our investors access to risk in the US commercial property retail market."

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