PAULA Financial announced that PAULA Insurance Company (PAULA) has entered into a prospective quota share reinsurance agreement with the Insurance Corporation of Hannover (ICH). The treaty terms allow for a variable cession of premiums by PAULA to ICH.
Under the terms of the agreement, PAULA may cede no less than 10% and no more than $12.5 million of premiums earned in fiscal year 2000 on policies that are effective on or after January 1, 2000. In 2001 PAULA may cede not less than 10% and up to 25% of earned premiums to their new reinsurance partner. The treaty has an effective date of July 1, 2000. Insurance Corporation of Hannover is rated A by A.M. Best.
Commenting on the new reinsurance arrangement, Jeff Snider, Chairman and Chief Executive Officer of PAULA Financial, stated, “We are very pleased to work with Insurance Corporation of Hannover. Over the course of the past few months the Hannover team has had the opportunity to review our operations and financial data. Their decision to partner with PAULA is good for our company, and should be well received by our agents and policyholders.”
“Our quota share relationship with Hannover will not replace General Re, our excess treaty partner for more than twenty-five years; it flatters us to be able to enjoy such good company in the reinsurance community,” concluded Snider.
PAULA Financial is a California-based specialty underwriter and distributor of commercial insurance products which, through its subsidiary, PAULA Insurance Company, is one of the largest underwriters specializing in workers’ compensation insurance products and services for the agribusiness industry.
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