US insurer Travelers has renewed its quota share arrangement with Bermuda based re/insurer Fidelis Insurance, as market conditions remain attractive in the segments where this partnership had been targeted, according to the firms CFO.
Speaking just now during Travelers fourth-quarter 2023 earnings call, CFO Dan Frey revealed that the Fidelis quota share arrangement has been renewed for 2024.
Travelers had first entered into the quota share with Fidelis back in early 2023, after making a strategic minority investment in the company.
Travelers management said at the time that the quota share would help the insurer “participate in the hard market.”
A year later, Travelers still sees the relevant market segments as attractively priced and so has continued this partnership through a renewal of the quota share.
CFO Dan Frey said, “For 2024, in light of continued strong pricing and terms in the E&S and reinsurance markets, we are pleased to share that we have renewed the 20% quota share with Fidelis.”
Adding that, “The renewal includes the same loss ratio cap we had for 2023.”
Frey went on to say that, when it comes to the Fidelis quota share, “The written premium volume, which will again be included as part of international within the business insurance segment, is not expected to be material to the segment.”
But he further explained that the premium volume, “Should have a modestly favourable impact on the underlying combined ratio for 2024 as it earns in.”
