Brit Insurance and Maiden Holdings say they have entered a temporary 100% quota-share reinsurance agreement bewteen Maiden's Excess and Surplus unit, Maiden Specialty, and Brit Global Specialty.
This arrangement will shortly evolve into Brit assuming all renewal rights through Brit Global Specialty USA (BGSU), which will ultimately be writing the renewals of the assumed business into Brit's Lloyd's of London syndicate 2987.
Terms were not disclosed.
As part of the arrangement, all Maiden Specialty staff will transfer employment to BGSU as of May. The transferred employees will continue to underwrite on Maiden Specialty paper as part of an agency agreement with BGSU, with Brit assuming all liabilities for business effective May 1.
"This transaction fulfils Maiden's desire to reduce exposure to natural catastrophes and focus on its core non-cat reinsurance business," says Art Raschbaum, CEO of Maiden, in a statement. "The transferring Maiden Specialty employees will enhance Brit's growing E&S specialty presence in the U.S. The team will be better positioned to grow their niche business with a company whose goal is to successfully sustain and develop their existing footprint."
Mark Cloutier, CEO of Amsterdam-based Brit Group, adds, "This opportunity provides a springboard for BGSU to grow into this [property E&S] space in a coordinated, yet distinct manner, from our established London business while at the same time furthering our commitment to Lloyd's as our core trading platform."
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