UFG Insurance Looks to Diversify Risk Profile by Expanding into Reinsurance Across U.S.

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UFG Insurance Coverage Appearances to Expand Threat Account by Broadening right into Reinsurance Throughout UNITED STATE

UFG Insurance policy is seeking to branch out throughout the UNITED STATE by increasing right into thought reinsurance company– partially by means of allocation share setups, such as the just recently revealed deal with Topsail Re, a Cayman Islands-based reinsurer.

“We’re looking to grow on a more national scale, and we want to diversify our overall risk profile. This is one channel, one way to accomplish that goal,” claimed UFG Vice Head of state and also Principal Threat Policeman Micah Woolstenhulme, that is leading the firm’s reinsurance technique.

Under a program administration arrangement, Topsail will certainly finance and also handle industrial casualty, industrial car and also individual car company in support of United Fire & Casualty, which is a subsidiary of UFG Insurance policy, headquartered in Cedar Rapids, Iowa.

It’s a win-win for both firms due to the fact that UFG is looking for to increase its company throughout the UNITED STATE, while Topsail intends to supply extra capability to its cedents, he clarified in a meeting with Insurance Coverage Journal.

Micah Woolstenhulme

Woolstenhulme defined United Fire as a super-regional plan expert, with its largest course of company being service providers and also its largest state presently Texas, adhered to by The golden state, Iowa and also Missouri.

Under the arrangement with Topsail, UFG will certainly get involved on the reinsurance panel for allocation share reinsurance treaties, sourced by Topsail Re Underwriters, which is Topsail Re’s Greensboro, N.C.-based underwriting company.

“The actuarial analysis and underwriting is performed by Topsail Underwriters in North Carolina, but we have our balance sheet and we’re offering additional capacity on business they already would be authorizing – to basically extend their participation on those treaties,” he proceeded.

Topsail Ceo David Johnson clarified that this is treaty company that his firm currently carries its annual report.

David D. Johnson

“But our partnership with UFG allows us to expand our line size on particular programs or allows us to grow and do more programs and diversify while also giving them more diversity,” claimed Johnson in the very same meeting.

“We’re doing exactly the business that we would be doing anyway. It’s just that we’re now able to offer the broker and the cedent a participation from both Topsail Re and UFG,” Johnson claimed, keeping in mind that allocation share company stands for greater than 90% of the firm’s costs.

With the UFG setup, Topsail will certainly remain to create its part of the danger on Topsail paper, while UFG’s part of the danger will certainly get on UFC paper. The allocation share arrangement needs that Topsail thinks even more danger than UFG, “so Topsail will always have an equal or greater share than UFG on a particular transaction,” clarified Johnson.

Perfect Fit

“This relationship with Topsail is a perfect fit for us, given their expertise in this type of reinsurance. So this fits into our overall strategy of growing our reinsurance operations,” claimed Woolstenhulme.

Throughout 2020, 3% of UFG’s internet costs created was reinsurance– both in the excess and also quota-share locations– so there’s lots of space to expand.

Woolstenhulme would certainly not, right now, expose just how much these quota-share setups or its excess reinsurance company would certainly raise its internet created costs.

“Our answer to that question is that this is part of a strategy to expand the reinsurance capacity that we’re providing in a material way across multiple lines of business, including those that are subject to this agreement with Topsail,” he claimed.

Before the February 2020 statement concerning the allocation share take care of Topsail Re, UFG revealed it had actually created one more program administration arrangement– this moment with Waypoint Financing Monitoring. Based in Basking Ridge, N.J., Waypoint is a specialized reinsurance handling basic expert that provides property/casualty and also mishap and also health and wellness remedies to insurance providers.

Reliable Nov. 1, 2020, Waypoint started financing and also handling employees’ payment reinsurance in support of United Fire & Casualty Co.

“We’re really excited about these agreements,” Woolstenhulme verified. We assume it’s an one-of-a-kind means to bring even more reinsurance capability to the marketplace … We assume it’s mosting likely to be an actual significant resource of capability for sure cedents.”

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