AmTrust buys reinsurance cover
New York-based AmTrust Financial Services said on Sept. 5 that it entered into a quota share reinsurance contract to reduce exposure to catastrophe and non-catastrophe events related to the business of its subsidiary Republic Companies effective August 1, 2017.
The quota share contract has a cession rate of 62.5 percent covering the personal property policies at Republic. Multiple unrelated reinsurers participated on the contract.
The new quota share contract is designed to work in conjunction with AmTrust’s existing excess of loss reinsurance programs on catastrophe and non-catastrophe events. This contract reduces the company’s exposure to and lessens financial volatility related to all catastrophe perils, including hurricanes and tropical storms.
AmTrust’s excess of loss reinsurance programs as of July 1, 2017, provides catastrophe coverage for losses in excess of $20 million, with a per event limit of $830 million. The company’s additional 62.5 percent property quota share treaty, effective August 1, 2017, covers Republic’s personal lines property business to effectively further reduce the Company’s net catastrophe exposure.
“Although property represents a small portion of our overall portfolio from a premium standpoint, we have always taken a conservative approach to our retention, based on our catastrophe models and capital requirements,” said Barry Zyskind, chairman and CEO, AmTrust.
“This agreement supports our goal of reducing volatility and creating more certainty and confidence in our future financial performance,” Zyskind said.
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