Ambac Financial Group launches Everspan Group
Financial services holding company Ambac Financial Group has launched Everspan Group, a specialty, participatory fronting program insurance business.
Earlier today, AM Best issued a Financial Strength Rating of ‘A-’ (Excellent) for Everspan Group’s core insurance companies, Everspan Indemnity Insurance Company, an excess and surplus lines insurer and Everspan Insurance Company, an admitted carrier. It expects to begin writing new specialty programs in the first half of 2021.
“The launch of Everspan Group reflects a milestone event and the core foundation for Ambac’s specialty program insurance strategy. Everspan Group’s advanced participatory fronting model positions us to be a leading market for insurance distributors. Our broader specialty insurance strategy is focused on establishing and acquiring targeted best in class businesses with quality growth-oriented business models and proven management teams. With the launch of Everspan Group and the recent acquisition of Xchange, Ambac is progressing its goal of developing capital efficient specialty insurance businesses that we believe will create long-term value for our shareholders.” – Claude LeBlanc, Ambac’s President, and CEO of Ambac and Everspan Group.
Ambac formed Everspan Group in response to market dynamics and demand for capacity. Everspan Group will pursue a sustainable, long-term property and casualty, participatory fronting strategy by underwriting diverse classes of risks. Everspan Group will source business primarily through managing general agents, program administrators, brokers, regional insurers, reinsurers, and the insurance-linked securities market and may retain up to 30% of underwriting risk per program.
“Everspan Group’s strong capital position and focus on underwriting results, measured risk retention, long-term relationships, and avoidance of channel conflicts, will differentiate our platform in the specialty program market. Everspan Group’s experienced executive team, with an established track record in the specialty program industry, combined with public company support, including deep operational and credit expertise, will allow Everspan Group to provide financial strength, stability, commitment, and continuity to our business partners.” – Wyatt Blackburn, President of Everspan Group.
Ambac has launched its platform diversification, three-pillar strategy into (I) specialty program insurance, (II) managing general agency/underwriting, and (III) other insurance and insurance related businesses that meet pre-established criteria and that we expect will generate long-term stockholder value with attractive risk-adjusted returns. Everspan Group represents the commencement of business under Pillar I of Ambac’s platform diversification strategy.
