Xchange Benefits LLC, a managing general underwriter owned by Ambac Financial Group, has launched a new reinsurance MGU called Xchange Re Underwriting Agency.
The new entity has signed a reinsurance underwriting management agreement with United States Fire Insurance Company to underwrite worldwide accident and health (A&H) reinsurance coverage.
Xchange Re will underwrite both non-proportional treaty and facultative/direct excess of loss business on behalf of U.S. Fire, which operates under the registered trademark of Crum & Forster.
“We are thrilled to build upon our wide and longstanding relationship with Crum & Forster,” said Peter McGuire, CEO of Xchange Benefits. “We have seen a great deal of disruption in the reinsurance market over the past year.
“We believe that this is an excellent time to enter this marketplace, and we have established Xchange Re to provide quality underwriting solutions to the accident and health industry,” McGuire continued.
“Adding reinsurance underwriting to Xchange Benefits’ offerings is a natural progression for Xchange and also capitalizes on the deep industry experience within our company.”
This announcement follows the recent launch by Xchange Benefits of a protected cell company named Distribution Re in Tennessee, which will insure A&H risks in the form of high deductible medical stop loss plans.
Stephen Hitch, Senior Vice President of Underwriting, has been appointed by Xchange Benefits to lead the new Xchange Re MGU.
“We are very pleased that Stephen Hitch, a leading underwriter in the accident and health reinsurance and retrocession market, has taken on the role of heading up this new underwriting initiative,” McGuire said. “Stephen is a highly respected lead underwriter with over 25 years of underwriting experience within the London reinsurance and retrocession market.”
Hitch also commented “Xchange Re will offer global lead market capacity for accident and health reinsurance programs. I look forward to offering beneficial opportunities to all our future stakeholders via both old and new relationships.”
Susan Silfen, Senior Vice President of Crum & Forster A&H, further stated: “I am very excited to be expanding on our longstanding and extensive relationship with Xchange Benefits. This is an excellent time to be getting into the accident and health reinsurance market, and the depth of underwriting acumen and leadership within Xchange Re will make for a very successful venture. We are looking forward to supporting Xchange Re’s growth in this market segment.”
