Financial services holding company Ambac Financial Group has announced the launch of Everspan Group, a specialty, participatory fronting program insurance business.
With capital in excess of $100 million, Everspan will operate as a Financial Size Category Class VII property and casualty insurer and is expected to begin writing new specialty programs in the first half of 2021.
It plans to source business primarily through managing general agents, program administrators, brokers, regional insurers, reinsurers, and the insurance-linked securities market and may retain up to 30% of underwriting risk per program.
AM Best has already issued a financial strength rating of ‘A-‘ (Excellent) for Everspan’s core insurance companies, Everspan Indemnity Insurance Company, an excess and surplus lines insurer and Everspan Insurance Company, an admitted carrier.
Analysts said the ratings reflect Everspan’s balance sheet strength, as well as its adequate operating performance, limited business profile, and appropriate enterprise risk management.
“The launch of Everspan Group reflects a milestone event and the core foundation for Ambac’s specialty program insurance strategy,” said Claude LeBlanc, Ambac’s President, and CEO of Ambac and Everspan Group.
“Everspan Group’s advanced participatory fronting model positions us to be a leading market for insurance distributors Our broader specialty insurance strategy is focused on establishing and acquiring targeted best in class businesses with quality growth-oriented business models and proven management teams,” LeBlanc continued.
“With the launch of Everspan Group and the recent acquisition of Xchange, Ambac is progressing its goal of developing capital efficient specialty insurance businesses that we believe will create long term value for our shareholders.”
Wyatt Blackburn, President of Everspan Group, also commented: “Everspan Group’s strong capital position and focus on underwriting results, measured risk retention, long-term relationships, and avoidance of channel conflicts, will differentiate our platform in the specialty program market.”
He added: “Everspan Group’s experienced executive team, with an established track record in the specialty program industry, combined with public company support, including deep operational and credit expertise, will allow Everspan Group to provide financial strength, stability, commitment, and continuity to our business partners.”