Prior to the sale, all prior insurance business and liabilities of ASL were reinsured to Arrowood Indemnity Company
Arrowpoint Capital sells shell company (Credit: FreeDigitalPhotos.net/adamr)
Arrowpoint Capital completed the sale of Arrowood Surplus Lines Insurance Company (ASL), one of its remaining two US licensed companies, to Transverse Insurance Group, LLC, on January 23, 2020 as a shell company.
“A shell company is one with no real operations or assets, other than the minimum assets needed to maintain licenses and/or as agreed to with the buyer,” said Arrowpoint Controller Dave Davenport.
Prior to the sale, all prior insurance business and liabilities of ASL were reinsured to Arrowood Indemnity Company (Arrowood) by a 100% Quota Share Reinsurance Agreement. Arrowood will continue to manage the ASL claims.
As a result of the sale, Arrowood is Arrowpoint’s remaining US risk-bearing entity. Over the past two decades, the organization has reduced the number of US insuring entities from 35 in 1999, to 25 in 2003 at the beginning of the run-off initiative, to two – Arrowood Indemnity Company and Arrowood Surplus Lines Insurance Company – in 2007.
Source: Company Press Release