There's a new kid on the program business underwriting block with some very old money behind it.
Praetorian Financial Group Inc. will take over some of the prime program business from Clarendon Insurance Group Inc. while exploring new programs involving niche automobile risks and other unusual covers such as those protecting the health of pets, art collections and mobile phones.
Clarendon will focus on 200 programs that will be terminated as well as commodity business that will fall outside of Praetorian's realm.
Both companies are subsidiaries of Hannover Re.
“With this separation we have taken the last logical step as part of our restructuring measures geared to maximizing the value of our specialty insurance business group,” said Hannover chairman Wilhem Zeller in announcing the move in March.
Former Benfield executive Rod Fox heads up the New York-based Praetorian and feels the softening market is a great time for program business and working with managing general agents in general.
“What we are saying is that we are not in the program business. We are in the partnership business,” he said. “We want to create underwriting partnerships with the best MGAs in the country.”
With the fourth-largest reinsurer in the world as a parent, Mr. Fox asserted that Praetorian brings unusual strength and stability.
“We have a clean balance sheet so we don't have the legacy issues of the past,” he said.
On May 26, Praetorian added to its program business capabilities by acquiring a surplus lines company from Alea Group Holdings (Bermuda) Ltd. The company, which will complement Praetorian's two existing admitted carriers, is to be renamed Praetorian Specialty Insurance Company.
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