Run-off provider Fleming Reinsurance Ltd. (Fleming Re) has announced that it recently completed the novation of the workers compensation deductible layer of Duarte Nursery, Inc.
Duarte Nursery is a family owned and operated nursery located near Modesto in California. It’s the largest permanent crops nursery in the U.S. and has a history of innovative solutions and impressive customer service.
The novation by Fleming Re provides Duarte with full legal finality and a release of capital, and by working closely with TPAs and front companies, Fleming Re will continue to provide the same quality care and coverage.
Fleming Re’s Chief Executive Officer (CEO), Eric Haller, commented: “This transaction is a testament to Fleming Re’s reputation as a trusted run-off provider as this novation was executed with a counterparty that was a captive member in a previous transaction. Given the state of the current economy many companies are looking for sources of capital.
“Run-off transactions are a great way to access encumbered capital to support companies’ operations. Due to the current market disruption, we are seeing a large increase in demand and will complete several more transactions over the coming months.”
Duarte Nursery added: “Based on our previous experience with Fleming Re, we were very comfortable that they would provide a solution that achieved our goals. As with any transaction, trust and transparency are important and they were able to provide both.”
