Citadel Risk has announced major capital changes to the balance sheets of its Citadel Reinsurance Company Limited Bermuda (Citadel) and American Millennium Insurance Company (AMIC) subsidiaries.
These include a $25 million capital injection into Citadel’s balance sheet, which stands at $47.1 million as of September 30th.
Similarly, Citadel Risk announced a $10 million injection into AMIC’s balance sheet, which stands at $21.9 million.
In addition, a reinsurance stop loss has been put in place to cap the AMIC losses which led to a rating downgrade in February 2021.
Both companies have reported significant capital investment and balance sheet improvement in recent months, which resulted in Citadel Risks reporting consolidated pre-tax profit of $2.5 million for the first six months of 2021.
It also forecasts that consolidated surplus at year end 2021 will be approximately $55 million, with an additional $20 million expected in early 2022.
“It has been a tough year for Citadel, and I am extremely pleased to announce this major investment and financial strengthening of the Group’s balance sheet,” said Group CEO Tony Weller.
“The enhanced capital base will allow us to write larger lines and develop AMIC into a wider and more diverse insurance entity. The Group will be preparing new submissions for an immediate rerating with AM Best, and the enhanced capital structure will be a positive uplift,” he continued.
“I sincerely thank all our clients and partners for their support during a difficult time and look forward to working with them to explore many new opportunities.”