The American Global Insurance and Reinsurance Group has struck a quota share reinsurance arrangement with two Lloyd's of London syndicates, a deal the Modoc Nation's insurance commissioner believes makes American Global Insurance, Inc. (AGII) the first tribally licensed carrier to secure such a relationship with the Lloyd's market.
AGII, the group's lead carrier, is incorporated under the laws of the Modoc Nation, a federally recognized tribal entity with sovereign jurisdiction in Oklahoma, and licensed by its Department of Insurance.
Under the Hospital Indemnity Quota Share Reinsurance Agreement, effective January 1, 2026, the two corporately owned Lloyd's syndicates will assume a 50% share of premiums and losses tied to AGII's medical health indemnity risks.
The American Global Group operates through a network of insurance, reinsurance and service companies, many of which are established under tribal jurisdictions.
The Modoc Insurance Department was formed in 2018 and now houses more than 700 direct write and reinsurance companies, positioning itself as an alternative to state-sponsored captive domiciles and offshore locations.
Tribes and states both hold the right to regulate insurance, with federally recognized tribes able to develop frameworks separate from the state in which their territory sits. Mark Weitz, an attorney and founder of Weitz Morgan PLLC, serves as the Modoc Nation's insurance commissioner.
The model has not been without scrutiny. Tribal captive domiciles, including Modoc, have drawn attention from the Internal Revenue Service over micro-captive structures, prompting tribal leadership to publicly defend the regulatory framework against what it has called industry "misconceptions and prejudices."
AGII primarily writes supplemental wellness and fully funded health care indemnity programs aimed at small to medium-sized employers. The programs are structured to comply with the Employee Retirement Income Security Act of 1974 (ERISA) and the Internal Revenue Code, exempting them from state and local regulation.
The carrier has also developed health care plans intended as alternatives to Affordable Care Act (ACA) products, which it expects to roll out in select states. AGII said the offerings are ACA compliant, with many integrating Health Savings Accounts.
In industry usage, "ACA alternative" typically refers to private off-exchange plans that still meet ACA's essential health benefit requirements but are not sold via the federal or state marketplaces and do not qualify for cost-sharing subsidies.
The arrangement comes as Lloyd's continues to draw fresh capital, with its latest annual report flagging that returning capital and limited catastrophe activity could weigh on 2026 pricing.
The market fielded more than 50 serious underwriting enquiries during the year, with seven new syndicates beginning operations in 2025 and 13 more launching on January 1, 2026, the same effective date as the AGII deal.
The Modoc Nation's commissioner said that "with the support and strength of the oldest and most established insurance and reinsurance organization in the world, the American Global Group is now setting its sights on redefining how American employers can provide affordable quality healthcare to their employees."
