Victor Insurance Managers LLC, the global managing general underwriter, has announced the launch of Victor Insurance Exchange (Victor Exchange), a reciprocal insurance exchange, to deliver additional US property catastrophe capacity to existing and new policyholders of Victor’s subsidiary, International Catastrophe Insurance Managers LLC (ICAT).
The reciprocal insurance exchange is owned by its policyholders and capitalized by a combination of surplus notes, member surplus contributions, and any retained future profits.
Initial capitalization for Victor Exchange will be in the form of a surplus note wholly provided by Gallatin Point Capital LLC, a financial services-oriented private investment firm.
Victor Exchange is licensed as a domestic surplus lines insurer in Delaware and has been assigned a preliminary credit assessment financial strength rating of A-.pca (Excellent) by AM Best. ICAT will be the exclusive managing general agency and through its subsidiary, Boulder Claims, will act as the third-party claims administrator.
Victor Exchange joins ICAT’s existing carrier panel offering small commercial property catastrophe coverage in the 42 states in which ICAT operates and will immediately launch a coastal homeowners program serving policyholders in states along the Gulf and Atlantic coasts.
Commenting on the newly formed subsidiary, Brian Hanuschak, CEO of Victor, said, “The impacts of increasingly frequent and severe storm activity has led to significant strain on property catastrophe insurance capacity globally and, in particular, the US. By forming Victor Insurance Exchange, Victor and ICAT are creating a new source of capacity for agents and brokers while providing more long-term stability for our small commercial and residential policyholders.”
GC Securities served as the exclusive financial advisor on structuring Victor Exchange and raising capital for Victor Exchange. Victor’s Legal Advisor was Greenberg Traurig, LLP and Gallatin Point’s Legal Advisor was Morgan Lewis.
Neither Victor nor any of its affiliates are making any capital contributions or have any direct exposure to an underwriting loss in Victor Exchange.
