AmTrust Financial Services, a provider of specialty property and casualty insurance, has inked a quota share agreement with Swiss Re for its US small commercial business with projected written premiums of around $2.9bn.
Under the agreement, Swiss Re will assume around $1.05bn on an inforce, new and renewal basis.
The agreement became effective on 1 January 2019. It can be renewed every year.
AmTrust chairman and CEO Barry Zyskind said: “AmTrust is pleased to partner with Swiss Re, one of the world’s strongest and longest-standing reinsurers, on this quota share agreement.
“This reinsurance partnership for our U.S. small commercial business provides AmTrust with an AM Best A+ rated partner who we believe will deliver significant value beyond the strength of its balance sheet, and provide us enhanced capital flexibility.
“The opportunity to partner with Swiss Re on this quota share is a vote of confidence in the strength of the AmTrust franchise, and our core business supporting small businesses across the U.S.”
At the same time, AmTrust will scrap its existing quota share agreement with Maiden Re with respect to the subject business in the Swiss Re Quota Share.
Besides, AmTrust will cede the unearned premium of the subject business to Swiss Re.
However, AmTrust will collaborate with Maiden Re on other lines of business.