Two Lloyd’s underwriters have partnered in a reciprocal capacity arrangement, in which they delegate authority to underwrite property schedules on behalf of each other.
In a company statement, ICAT Syndicate 4242 said that it has entered into an expanded partnership with Neon. Both agencies are Lloyd’s underwriters.
ICAT is a leading property underwriter with catastrophe exposure, while Neon is focused on specialist products.
Under the arrangement, Neon can offer up to $40 million per account on properties underwritten from its Bermuda office. In addition, ICAT grants authority to Neon to underwrite larger property schedules.
The agreement is an expansion of an existing partnership in which Neon delegates authority to ICAT through an arrangement where Neon is one of a panel of insurers that provides up to $150 million per risk capacity to the latter.
According to the statement, ICAT views the partnership as a step in diversifying its portfolio towards externally underwritten short-tail businesses. The company reports that it is on track to write $172 million general weighted premiums for 2016.
For its part, Neon said that the company is focused on writing direct and facultative property insurance for the global market and has plans to launch new product lines to expand its Bermuda presence.
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