Demotech Comments on BB&T Corporation's Sale of American Coastal Insurance Company (ACIC)
COLUMBUS, Ohio, May 8, 2015 /PRNewswire/ -- BB&T Insurance Holdings Inc., a subsidiary of BB&T Corporation, recently announced an agreement to significantly increase its partnership in AmRisc, LP (AmRisc). In a related agreement, BB&T Corporation has agreed to sell American Coastal Insurance Company (ACIC) to certain members of the AmRisc management team subject to regulatory approval.
Upon acquisition, AmRisc will remain ACIC's exclusive MGA serving the Florida condominium property insurance market. ACIC expects to maintain the same strength in their reinsurance program. ACIC currently is assigned a Financial Stability Rating® of A′, Unsurpassed, by Demotech, Inc.
The current management team will continue to manage the operations of ACIC. AmRisc will continue to underwrite on behalf of Lloyd's and their domestic Excess & Surplus carriers delivering over $250 million per risk CAT capacity for their coastal property producers and customers. All of AmRisc's senior management will be staying. Specifically, Dan Peed will remain CEO and President.
Joseph L. Petrelli, President, Demotech Inc. notes: "Although the management team at AmRisc averages more than twenty years of insurance experience, their distinctive competence in the underwriting of condominium association business is that the management team is dominated by structural engineers. They not only underwrite condominiums, in their previous careers, they have been involved in the development, inspection and approval of loss prevention systems for condominiums, as well as most other commercial property structures. When AmRisc was initially formed, the principals leveraged the knowledge gained through their engineering education and related structural evaluation and building expertise to evaluate and underwrite secondary and tertiary characteristics of the structural aspects of condominiums in addition to the primary ones that insurance professionals review."
Peed commented "This new chapter in the AmRisc story will bring new opportunities for our producers and their customers, employees and our leadership team. American Coastal has been a very important part of the AmRisc story beginning with its founding in 2007, and I see a very bright future for AmRisc and American Coastal as we continue to deliver market - leading insurance products."
About AmRisc
Established in late 2000, AmRisc, LP is the largest catastrophe - focused Managing General Agent (MGA) in the United States and was listed in 2014 by Business Insurance as the third largest MGA in the country. In 2014 gross written premium was over $900 million comprised of approximately $600 million of E&S commercial property and over $300 million of admitted Florida condominium association business. AmRisc writes for multiple carriers and syndicates, including a dozen Lloyd's syndicates. QBE Americas, Zurich NA, XL, State National, AIG, Scor, Munich Re, and Hannover Re (all on E&S paper); and American Coastal Insurance Company (ACIC), an admitted Florida condo insurer.
About American Coastal
American Coastal Insurance Company (ACIC) is a licensed and admitted Florida based insurance company currently writing Condominium and Homeowner Association properties. In 2014 ACIC wrote over $300 million of Florida condominium association business. Since inception in 2007, ACIC has maintained a conservative investment portfolio and very strong catastrophe reinsurance protection. Underwriting services are contracted to AmRisc, LP, which is the largest Managing General Agent in the country specializing in hurricane – exposed properties.
About Demotech, Inc.
Demotech, Inc. is a financial analysis firm located in Columbus, Ohio. Since 1985, Demotech, Inc. has been serving the insurance industry by providing actuarial consulting as well as accurate and proven Financial Stability Ratings® (FSRs) for Property & Casualty insurance companies and Title underwriters. FSRs are a leading indicator of the financial stability of an insurer. Our rating process provides an objective baseline as well as insight as to the financial stability of an insurer. Demotech levels the playing field by offering FSRs to insurers of all sizes.
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SOURCE Demotech, Inc.
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