Property and casualty insurer AmTrust Financial Services has entered into a quota share agreement with Swiss Re for 2019 that covers U.S small commercial business totalling an estimated $2.9 billion in projected written premiums, with Swiss Re projected to assume approximately $1.05 billion on an inforce, new and renewal basis.
The agreement commenced on 1 January 2019 and renews on an annual basis.
In addition to entering into the quota share, AmTrust will terminate its existing quota share with Maiden Reinsurance Services with respect to the subject business in the Swiss Re quota share on a cut-off basis and cede the unearned premium of the subject business, as of 31 December 2018, to Swiss Re.
Barry Zyskind, Chairman and Chief Executive Officer of AmTrust, said AmTrust was pleased to partner with Swiss Re, one of the world’s strongest and longest-standing reinsurers, on this quota share agreement.
“This reinsurance partnership for our U.S. 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,” Zyskind added.
“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 U.S.”
AmTrust has previously entered into a new 50% quota share agreement with Everest Re covering the firm’s projected $700 million of specialty program premiums.
AmTrust has said that it will continue to partner with Maiden Re on other existing lines and expects to cede Maiden Re less than $500m of written premium in 2019.