Raleigh, North Carolina-based insurance broker BB&T Insurance Holdings Inc. has reached an agreement to significantly increase its partnership interest in AmRisc, a managing general underwriter for commercial property risks based in
In a related agreement, its parent, BB&T Corp., has agreed to sell American Coastal Insurance Co. (AmCoastal) to certain members of the AmRisc management team. American Coastal is an admitted Florida specialty company that insures condominiums and homeowner associations.
The company said the sale of AmCoastal eliminates BB&T’s exposure to potential underwriting losses in the future.
Management of AmRisc will retain a minority interest in the company and continue to grow and manage the business.
AmRisc had gross written premiums approaching $1 billion in 2014. As an MGU, AmRisc does not assume any underwriting risk and BB&T believes it represents an attractive fee income business that is complementary to BB&T Insurance Holdings.
AmCoastal began writing business in September 2007. Its primary business is “best of class” Florida garden-style condominiums. “Best of class” risks place an emphasis on positive secondary wind underwriting characteristics such as roof shape, bracing, hurricane straps where needed and age of roof coverings for all ISO 1-6 construction.
AmRisc, which specializes in hurricane exposed properties, provides the underwriting services for AmCoastal. AmRisc has grown from underwriting approximately $25 million premium in 2001 to $850 million premium in 2013. It underwrites for nine different insurance companies as well as several Lloyd’s syndicates.
The net effect of these two transactions is not expected to have a material impact on BB&T’s earnings or capital position.
BB&T Insurance Holdings operates more than 100 insurance agencies through subsidiaries BB&T Insurance Services, BB&T Insurance Services of California, and McGriff, Seibels & Williams.
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