ICAT Holdings announced the creation of a new underwriting syndicate at Lloyd's of London late last week, explaining that the syndicate will have $200 million of gross capacity for U.S. catastrophe-exposed properties.
The new ICM Syndicate 4242 will commence underwriting business on Jan. 1, 2007, Boulder, Colo.-based ICAT said.
According to ICAT, its long-term strategy has been to evolve its business from the underwriting manager model to that of a full risk-bearing insurer. In 2005, the company took its first step toward the achievement of this strategy by establishing ICAT Specialty Insurance Company to underwrite wind-hail only policies for small commercial accounts in Florida and named hurricane coverage for residential properties in Hawaii.
Jack Graham, chief executive officer of ICAT Holdings, said under the Lloyd's banner the company is "well positioned to serve the needs of more than 20,000 policyholders and our network of 450 independent agents and brokers."
Syndicate 4242 has capital to support approximately $200 million of gross written premium for its 2007 business plan.
ICAT said that capital has been supplied through a consortium made up of ICAT and third-party investors, including Chaucer Holdings PLC.
The Chaucer Lloyd's managing agency subsidiary, Chaucer Syndicates, Ltd., will act as the managing agent for Syndicate 4242 to provide operations and regulatory support, ICAT said.
ICAT said Chaucer currently has ?1 billion ($1.9 billion) under management.
"Chaucer was attracted to working with ICAT due to its reputation in the market as a disciplined specialty underwriter," said Bob Stuchbery, chief underwriting officer of Chaucer.
ICAT's Gregory Butler is the Active Underwriter of Syndicate 4242. Mr. Butler has held several underwriting positions at ICAT and was previously deputy insurance commissioner in the California Department of Insurance. He also served as the founding CEO of the California Earthquake Authority.
ICAT is a specialty insurance underwriter of small and middle market commercial properties located in catastrophe-exposed areas of the United States. Founded in 1998, the company reports it insures more than 60,000 commercial buildings, with in-force premium of approximately $200 million.
Most agent and broker business produced for ICAT is transacted over the company's Web site (www.icat.com) where producers submit coverage requests and secure real-time underwriting decisions and quotes, ICAT said.
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