R&Q’s rebranded program underwriting division is at the heart of the firm’s “gold-plated” Brexit solution for (re)insurers and MGAs apprehensive about turmoil next year when the UK is scheduled to leave the EU, the company’s founding chairman and CEO Ken Randall has told Re-Insurance.
On the eve of the Rendez-Vous, R&Q renamed its transatlantic program underwriting division to Accredited while also rebadging its AM Best A- rated Malta-domiciled insurer to Accredited Insurance (Europe) Ltd.
The European insurer, together with its US namesake, Accredited Surety & Casualty Inc, are capitalising on the withdrawal of program – or fronting – capacity this year on both continents.
Europe, in particular, has witnessed the 2018 collapse of Danish insurer Alpha and the NZ-Irish carrier CBL, while other program writers such as Kudos have retrenched.
Accredited Europe – which began fronting in 2017 – has agreed four new partnerships this year with MGAs and their reinsurers in UK, Spain and Italy and Randall explains that he expects this to be in double figures by year end.
But he also sold that the firm’s EU domicile – together with a UK branch – ensures it will be able to write business across all remaining 27 member states following the UK’s withdrawal. It will also separately be able to write business via its UK branch.
“There is still considerable uncertainty about just how regulators will treat business across borders post-Brexit but Accredited provides a gold-plated solution for MGAs and their reinsurers”, he explained.
He added: “Post-Brexit, the renamed Accredited Malta will retain its ability to underwrite all P&C classes of business across the EU. We are also establishing a UK branch of Accredited Malta to secure continuity for our portfolios of UK domiciled business. The UK branch will continue to have the benefit of our A- credit rating with AM Best”.
Randall told re-insurance that at the heart of Accredited is “high quality capacity and 100 percent P&C licence coverage”. Randall added that since R&Q’s program initiative began last year, the Group has entered into partnerships valued at circa $200mn in annualised GWPs and it expects this number to at least double by year-end. R&Q’s other core operation is legacy acquisitions and last week it announced its largest ever LPT for an unnamed US RRG providing more than $146mn of ground up limit.