Bermuda re/insurer Maiden Re has terminated its existing quota share agreement with AmTrust covering small commercial business in favour of a new deal with Swiss Reinsurance America.
Maiden Re will however continue to partner with AmTrust on other existing lines and AmTrust expects to cede Maiden Re less than $500 million of written premium in 2019.
AmTrust will end the current deal on a cut-off basis and cede the unearned premium as of December 31, 2018, to Swiss Re.
The new agreement commenced on January 1, 2019, and totals approximately $2.9 billion in projected written premiums, covering workers' compensation and liability business including general, E&S, umbrella and professional lines.
“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.
TigerRisk and JLT Re acted as reinsurance intermediaries for this transaction.
“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”
Earlier in 2018, AmTrust entered into a 50 percent quota share agreement with Everest Re covering its projected $700 million of Specialty Program premiums.
Maiden Re, AmTrust, Swiss Re American, Bermuda, North America