Fronting

Dealmaking took centerstage, but other discussed topics were growth, talent and capacity.

The executive is charged with defrauding investors out of nearly $500mn.

E&S is most exposed to growth normalization, private credit is hunting P&C and fronting is deadlocked on exits.

Sources said that Howden Capital Markets is advising the fronting company.

Cavello Bay Re will provide paper for the MGA’s business written out of Bermuda.

The legacy player is working to secure its first deal, and could look to expand to US E&S.

Hagerty Re will now assume 100% of the premium and 100% of the risk.

Kestrel stock will begin trading on Nasdaq tomorrow under the symbol KG.

The MGA market now makes up 10% of the overall P&C market.

The company has reduced its exposure on large commercial auto and property.

The reinsurer also promoted Ethan Allen to chief program officer.

The firm acted as the front for Trouvaille Re, the E&S property sidecar for MGA AmRisc.

The move will enable Hadron to deliver more admitted insurance solutions to clients and policyholders.

Live since May 2023, the reinsurer has over 40 trading relationships currently.

The new CEO hints at expansion into MGA markets.

Consolidation options include fronts merging, competition, larger fronts becoming carriers and fronts being acquired by carriers.

The company is on target to write around $700mn in premiums this year.

The change comes after an ownership restructuring.

The transaction comes after Kestrel explored a deal last quarter to raise ~$150mn of capital.

The new, publicly listed specialty program group will be led by Luke Ledbetter.

Fronting growth fell by half in 2024 due to uncertain loss climate and high cost of capital.

The Bain-backed fronting carrier acquired Spinnaker’s shell subsidiary earlier this year.

Sources said that the AmTrust-backed fronting carrier has retained Evercore to run the process.

Capacity conversations centered around comp, trucking and cat, while new names emerged in collateralized re.

It is understood that the cut programs include Yachtinsure, Rhino, Paramount, Pinpoint and NTA.

Milton and Helene, casualty reserves and growth will be some of this year’s topics.

The raise includes minority investments from Nationwide, Enstar and others.

The move comes amid improving conditions in the IPO market for insurance companies.

Balance sheet risk, limited synergies and a further restriction of exit options all tell against a roll-up playbook.

Negotiations come after Insurance Insider US revealed that the Bermudian was running an auction.

The ratings agency also assigned the insurer an a- issuer credit rating.

The company still has ambitions to sell the business.

Mainsail offers 17 lines of insurance including auto, property and commercial coverage.

The Bermuda courts will assess Onex’s lower, revised offer for the fronting unit.

This is Emerald’s second facility, after its earthquake deal with Arrowhead.

State National has been lined up to front for the vehicle, which would be a rare example of third-party capital in this space.

The Canadian PE house is delaying close and seeking to renegotiate aspects of the deal.

The review reflects the group’s ongoing ownership-level restructuring.

The move comes as the wait for a deal for the whole group passes the six-month mark.

Its risk management of US captive reinsurance contracts has improved, the agency said.

The segment represents approximately 11% of the overall P&C market.

The firm launched late last year in the US with a $250mn capital injection, and has also acquired a UK platform.

The leadership team includes Spinnaker co-founders Dave and Ken Ingrey and ex-CUO Miles Allkins.

Trisura is expanding the firm’s licenses to include all 50 states and Washington, DC.

Just over half of votes cast were in favour of the $465mn sale to Onex.

AM Best’s decision to remove second-largest front Clear Blue from under review is a small positive development for the fronting sector, but caution is still needed.

Insurance Insider US’s morning summary of the key stories to get you up to speed fast.

The agency cited the segment’s sustained growth and performance on a global basis but noted tight capacity for certain risks and uncertainty looming over the fronting market as offsetting factors.

Clear Blue has successfully moved active programs to either new reinsurers or the reinsurers on its existing panels have taken higher percentages, the agency said.

Insurance Insider US’s morning summary of the key stories to get you up to speed fast.

Inside P&C’s morning summary of the key stories to get you up to speed fast.

Sources said MGA multiples are holding in the mid-to-high teens range while they still see strong PE and strategic appetite for the fronting sector.

Inside P&C’s morning summary of the key stories to get you up to speed fast.

Inside P&C’s morning summary of the key stories to get you up to speed fast.

Markel Bermuda entered into two collateralized reinsurance transactions with White Rock for the benefit of a segregated account owned by a Vesttoo affiliate.

Inside P&C’s news team runs you through the key highlights of the week.

Need to Know

It is understood that the three firms are in the late stages of the process, with a September deal targeted.

The consequences of Vesttoo will hurt the fronting companies, but the changes are less important than the role it plays in uncovering what was already there.

Need to Know