AmTrust replaces Maiden Re with Swiss Re on US quota share deal
AmTrust Financial Services has dropped Maiden Re as its quota share partner on its US small commercial business in favour of Swiss Re – though it said it will continue to work with the reinsurer on other business.
AmTrust has entered into a substantial quota share agreement with Swiss Reinsurance America for 2019 covering its US small commercial business totalling approximately $2.9 billion in projected written premiums. Swiss Re is projected to assume approximately $1.05 billion on an inforce, new and renewal basis.
The agreement commences on January 1, 2019 and renews on an annual basis. The deal means that AmTrust will terminate its existing quota share with Maiden Reinsurance Services with respect to the subject business in the Swiss Re Quota Share on a cut-off basis and cede the unearned premium of the subject business as of December 31, 2018 to Swiss Re.
Earlier in 2018, AmTrust entered into a new 50 percent quota share agreement with Everest Re covering the company’s projected $700 million of specialty program premiums. AmTrust said it will continue to partner with Maiden Re on other existing lines but it is unclear to what extent. It said it expects to cede Maiden Re “less than” $500m of written premium in 2019.
“AmTrust is pleased to partner with Swiss Re, one of the world’s strongest and longest-standing reinsurers, on this quota share agreement,” said Barry Zyskind, chairman and CEO of AmTrust.
“This reinsurance partnership for our US small commercial business provides AmTrust with an AM Best A+ rated partner who we believe will deliver significant value beyond the strength of its balance sheet, and provide us enhanced capital flexibility. The opportunity to partner with Swiss Re on this quota share is a vote of confidence in the strength of the AmTrust franchise, and our core business supporting small businesses across the US.”
TigerRisk and JLT Re acted as reinsurance intermediaries on the transaction.
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