Transverse Insurance Group, the program and fronting firm that aims to help reinsurance capacity providers including insurance-linked securities (ILS) funds and investors to access risk more directly, has had its second fronting carrier rated.
Transverse acquired Arrowood Surplus Lines Insurance Company (ASLIC) earlier this year, a Delaware-domiciled excess & surplus (E&S) company that is able to underwrite business in most states across the U.S.
Adding ASLIC meant that Transverse could expand its underwriting to cover both admitted and non-admitted programs, increasing its utility for providers of reinsurance capital.
Now, the renamed E&S carrier Transverse Specialty Insurance Company has received a Financial Strength Rating (FSR) of A- (Excellent) from A.M. Best, meaning Transverse now has two A- rated insurance carriers it can offer capacity providers and its MGA and program partners can acces both admitted and non-admitted business through the firm.
“We have put in the hard work to build the ideal solution for sophisticated, innovative MGAs and Program Administrators – as well as a conservative and supportive partner for the global reinsurance market,” explained Erik Matson, Co-Founder and CEO of Transverse. “We will continue to expand the capabilities of Transverse so that we can meet the needs of any program, in any line of business, in any geography.”
“Transverse is actively signing program agreements despite the uncertain environment,” added David Paulsson, Co-Founder and President. “We continue to see high quality and differentiated program partners across most lines of business, and expect to ramp up premiums in line with our long-term targets.”
Transverse aims to service ILS funds and investors as well as traditional sources of reinsurance capital, supporting both traditional program fronting relationships and transformer and ILS relationships as well.
Transverse’s carriers will also retain some risk on certain programs as well, which could benefit some ILS players looking to less typical risks where an ability of the carrier to retain the tail will be viewed favourably.
Fronting and risk transformation carriers, such as Transverse, are an important piece of the risk to capital chain for some ILS funds and investors, easing access to risk and earning the fronter service fees in return.