UFG Insurance coverage Appears to be like to Diversify Threat Profile by Increasing into Reinsurance Throughout U.S.

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UFG Insurance coverage is trying to diversify throughout the U.S. by increasing into assumed reinsurance enterprise – partly by way of quota share preparations, such because the not too long ago introduced take care of Topsail Re, a Cayman Islands-based reinsurer.

“We’re trying to develop on a extra nationwide scale, and we wish to diversify our total threat profile. That is one channel, one technique to accomplish that aim,” stated UFG Vice President and Chief Threat Officer Micah Woolstenhulme, who’s main the corporate’s reinsurance technique.

Underneath a program administration settlement, Topsail will underwrite and handle industrial casualty, industrial auto and private auto enterprise on behalf of United Fireplace & Casualty, which is a subsidiary of UFG Insurance coverage, headquartered in Cedar Rapids, Iowa.

It’s a win-win for each corporations as a result of UFG is looking for to broaden its enterprise throughout the U.S., whereas Topsail desires to offer further capability to its cedents, he defined in an interview with Insurance coverage Journal.

Micah Woolstenhulme

Woolstenhulme described United Fireplace as a super-regional bundle underwriter, with its greatest class of enterprise being contractors and its greatest state presently Texas, adopted by California, Iowa and Missouri.

Underneath the settlement with Topsail, UFG will take part on the reinsurance panel for quota share reinsurance treaties, sourced by Topsail Re Underwriters, which is Topsail Re’s Greensboro, N.C.-based underwriting company.

“The actuarial evaluation and underwriting is carried out by Topsail Underwriters in North Carolina, however we have now our stability sheet and we’re providing further capability on enterprise they already can be authorizing – to principally lengthen their participation on these treaties,” he continued.

Topsail Chief Govt Officer David Johnson defined that that is treaty enterprise that his firm already has on its stability sheet.

David D. Johnson

“However our partnership with UFG permits us to broaden our line measurement on specific applications or permits us to develop and do extra applications and diversify whereas additionally giving them extra variety,” stated Johnson in the identical interview.

“We’re doing precisely the enterprise that we might be doing anyway. It’s simply that we’re now capable of provide the dealer and the cedent a participation from each Topsail Re and UFG,” Johnson stated, noting that quota share enterprise represents greater than 90% of the corporate’s premiums.

With the UFG association, Topsail will proceed to write down its portion of the chance on Topsail paper, whereas UFG’s portion of the chance might be on UFC paper. The quota share settlement requires that Topsail assumes extra threat than UFG, “so Topsail will all the time have an equal or higher share than UFG on a selected transaction,” defined Johnson.

Excellent Match

“This relationship with Topsail is an ideal match for us, given their experience in this sort of reinsurance. So this suits into our total technique of rising our reinsurance operations,” stated Woolstenhulme.

Throughout 2020, 3% of UFG’s web premium written was reinsurance – each within the quota-share and extra areas – so there’s loads of room to develop.

Woolstenhulme wouldn’t, at the moment, reveal how a lot these quota-share preparations or its extra reinsurance enterprise would enhance its web written premiums.

“Our reply to that query is that that is a part of a technique to broaden the reinsurance capability that we’re offering in a cloth manner throughout a number of traces of enterprise, together with these which can be topic to this settlement with Topsail,” he stated.

Previous to the February 2020 announcement in regards to the quota share take care of Topsail Re, UFG introduced it had shaped one other program administration settlement – this time with Waypoint Underwriting Administration. Based mostly in Basking Ridge, N.J., Waypoint is a specialty reinsurance managing common underwriter that gives property/casualty and accident and well being options to insurers.

Efficient Nov. 1, 2020, Waypoint started underwriting and managing staff’ compensation reinsurance on behalf of United Fireplace & Casualty Co.

“We’re actually enthusiastic about these agreements,” Woolstenhulme affirmed. We predict it’s a singular technique to carry extra reinsurance capability to the market…. We predict it’s going to be an actual significant supply of capability for sure cedents.”

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