Bermudian reinsurer Third Point Re, who recently announced an investment and partnership with new MGA Arcadian Risk Capital, has said Arcadian will be targeting up to $125 million of premium for 2021.
Third Point Re has made a significant capital contribution to Arcadian and will own a minority stake in the newly-formed company, which is led by well-known industry executive John Boylan.
The start-up is targeting gross written premium of $10 million for 2020 and between $75 million and $125 million for 2021, Third Point Re said.
Arcadian will initially write lines of up to $15 million for any one insured for any one class of business, with a minimum attachment point of $5 million for excess casualty and professional liability business.
In addition to capitalizing Arcadian, Third Point Re will provide insurance paper and meaningful net capacity. It also intends to place quota share reinsurance on the portfolio.
Arcadian will begin its operations with a Bermuda-only platform, initially writing excess casualty and professional liability.
However, it has plans to expand to other jurisdictions over time and to begin underwriting further lines of business, depending on what it sees as the prevailing market opportunities.
In excess casualty, Arcadian’s underwriting teams have experience in life sciences, healthcare, transportation, utilities and construction.
Meanwhile, in professional liability, Arcadian will target public D&O, private companies D&O, E&O for accountants, consultants, brokers and employment practices liability insurance (EPLI), as well as architects and engineers (A&E) professional liability.
According to Third Point Re, the vast majority of Arcadian’s business is expected to come from the US, with distribution originating from large retail brokers.
The reinsurer also explained that the profile of the Arcadian portfolio will be risk-managed accounts, where there are professional risk managers on staff at the insured, which would typically indicate Fortune 1000 or FTSE 250 sized customers.
Arcadian plans to begin writing business as of October 1st 2020, having already received approval from the Bermuda Monetary Authority.
