SiriusPoint partners with Arden Insurance Services to aid wildfire recovery
Bermuda-based specialty re/insurer SiriusPoint has struck a strategic partnership with US commercial property MGU Arden Insurance Services to address wildfire cover challenges in California. Partnership to provide capacity for the launch of a new wildfire exposed risks programme that includes embedded parametric coverage.
Arden’s new Consolidated Fire Insurance Policy (CFIP) will initially be offered in California with eventual expansion into other wildfire exposed states. The policy offers coverage alongside Arden’s existing all-risk offering.
Arden specialises in solutions for multi-family habitation risks with an in-force portfolio of more than 120,000 buildings insured. This class of business has been particularly affected by the market’s decision to eliminate or severely sub-limit wildfire coverage in all-risk policies in the regions West of the Rockies, where Arden operates.
Brian Cohen (pictured left), Arden Insurance Services CEO and co-founder, said: “The recent LA wildfires further exacerbated the insurability crisis for properties located in wildfire exposed areas and CFIP provides comprehensive coverage for this underserved market. Our broker partners in California and other parts of the Western US have been asking for a solution that would provide peace of mind in a distressed market. We are excited to partner with SiriusPoint to deliver for the industry.”
Patrick Charles (pictured right), head of North America insurance at SiriusPoint said: “We’re proud to become a capacity partner to Arden, working together to meet critical market needs with a programme that is both creative and impactful. Arden’s thoughtful programme strategy, backed by a decade of proven success in this class of business, is filling a vital gap in an underserved segment. This partnership not only supports the insurance ecosystem but also contributes to the broader economic resilience of California."
Augment Risk facilitated the capacity deal between SiriusPoint and Arden.
Andrew Matson, Augment Risk CEO, added: “The Consolidated Fire Insurance Programme offers an efficient, streamlined approach to wildfire insurance. The solution highlights how innovative capital structuring can accelerate the delivery of new risk transfer solutions. Augment Risk’s parametric and MGA teams worked alongside Arden and SiriusPoint to structure the capital framework supporting this programme, and we are grateful to them for their trust throughout the process.”
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