CRM Holdings Ltd., a Bermuda-based workers’ compensation insurance provider, announced that its primary insurance subsidiary, Majestic Insurance Co., has entered into a quota share agreement with certain subsidiaries of AmTrust Financial Services Inc. AmTrust is a multinational specialty property/casualty insurance company covering the writing, management and administration of workers’ compensation insurance in California, Arizona, Nevada and Oregon.
Beginning April 1, 2010, Majestic will arrange for selected workers’ compensation insurance policies to be underwritten by the AmTrust group companies and reinsured by Majestic under a 90 percent quota reinsurance agreement. Majestic will perform management services for the covered business, including marketing, underwriting, issuance of policies, loss control, and claims handling. The agreement limits the amount of covered business to $40 million in any calendar year.
“We are extremely pleased to have begun this relationship with AmTrust Financial. This will allow Majestic the flexibility to offer insurance through AmTrust in the western states to our brokers and clients that require A-minus rated coverage. At the same time, Majestic will manage those policies and provide the exceptional loss control services and claims management that brokers and clients expect from Majestic. We are optimistic that AmTrust’s excellent reputation will allow us to expand our primary insurance segment in the covered states and we look forward to exploring other opportunities with them,” said James Scardino, CRM CEO.
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