Financial holding company Ambac Financial Group has launched Everspan Group, capitalized with more than $100 million, to focus on writing specialty program insurance business.
Everspan Group’s insurance companies include two Arizona-domiciled entities: Everspan Indemnity Insurance Co., an excess and surplus lines insurer, and Everspan Insurance Co., an admitted carrier.
A.M. Best has issued a Financial Strength Rating of ‘A-‘ (Excellent) for Everspan Group’s companies.
The launch is part of Ambac’s specialty program insurance strategy and follows the December announcement that it is acquiring 80% of the membership interests of each of Xchange Benefits and Xchange Affinity Underwriting Agency, with Xchange’s management principals retaining the remaining 20%. Xchange is a managing general underwriter specializing in accident and health insurance.
Claude LeBlanc, Ambac president and CEO of Everspan Group, called the launch of Everspan Group “a milestone event and the core foundation for Ambac’s specialty program insurance strategy.”
He said the specialty insurance strategy includes acquiring targeted “best in class businesses with quality growth-oriented business models and proven management teams.”
He said Ambac was formed Everspan in response to market dynamics and demand for capacity. Everspan Group will pursue a long-term participatory fronting strategy by underwriting diverse classes of risks, while sourcing business primarily through managing general agents, program administrators, brokers, regional insurers, reinsurers, and the insurance-linked securities market. The company may retain up to 30% of underwriting risk per program.
Wyatt Blackburn, president of Everspan Group, said Everspan Group’s “strong capital position and focus on underwriting results, measured risk retention, long-term relationships, and avoidance of channel conflicts” will differentiate its platform in the specialty program market.
Other Ambac Financial subsidiaries include Ambac Assurance Corp. and Ambac Assurance UK Limited, which are financial guarantee insurance companies currently in runoff.
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