Palomar Holdings has entered the fronting sector of the United States insurance market, through its business PLMR-FRONT.
PLMR-FRONT will partner with reinsurers, insurance carriers and managing general agents to enable the design and operation of customised insurance programs.
The company will front paper on both an admitted and non-admitted basis through Palomar Specialty Insurance Company and Palomar Excess and Surplus Insurance Company, respectively.
The fronting team will target opportunities across multiple lines of business where traditional insurance is difficult to source. New product lines may include but are not limited to cyber, non-standard auto, trucking, warranty and workers compensation.
In addition, Palomar’s entry into the fronting space will allow the specialty insurer to act either as a non-risk bearing insurance entity with a pure fronting model or participate in risk through a hybrid model.
Mac Armstrong, Chairman and Chief Executive Officer said: “PLMR-FRONT is a logical extension of Palomar’s franchise in the specialty insurance market. It represents an entrance into a sector that will generate new income streams and compelling risk-adjusted returns for our shareholders.
“Our admitted and E&S platforms offer the requisite infrastructure to execute PLMR-FRONT and also allow us to participate alongside our partners where appropriate.
“Ultimately, the fronting sector represents another opportunity to capitalise on changing market dynamics and dislocations while adhering to our focus on sound underwriting and profitable growth.”