US insurer Fortegra enters E&S lines to take advantage of market hardening

US specialty insurer Fortegra Financial Corporation has established a new excess and surplus (E&S) lines company in anticipation of further rate hardening.

The new E&S subsidiary, Fortegra Specialty Insurance Company, has received approval in its domicile state of Arizona. It is now working to obtain the remaining regulatory approvals necessary to conduct business throughout the US.

The company expects that underwriting within the excess and surplus company will start in the fourth quarter of 2020.

Richard Kahlbaugh, chief executive of Fortegra, said: “We have seen rates harden in the market. The catalysts for the hardening are diverse and as such we expect the trend to continue for the foreseeable future. Adding an excess and surplus lines company to our portfolio was a natural response, allowing us to broaden our product reach and scope within the US.”

Kahlbaugh added: “Fortegra’s continued success is rooted in its ongoing commitment to agent-driven distribution and maintaining a broad array of underwriting solutions and an experienced underwriting team that leverages proprietary artificial intelligence to enhance and expedite decision making. The formation and operation of our excess and surplus company will further our goal to carefully underwrite and expedite new program business.”