Maiden Holdings said that its wholly owned subsidiary Maiden Insurance Company and American Capital Acquisition Corporation (ACAC) have entered into a three-year 25% quota share reinsurance agreement in connection with ACAC's acquisition of GMAC's $1bn personal lines insurance business.
Under the agreement, Maiden expects to generate over $200m in annual net written premium at performance levels consistent with its objective of achieving a 96% combined ratio or better across its underwriting portfolio.
Art Raschbaum, president and CEO of Maiden, said: “We are very pleased to have the opportunity to enter into this important reinsurance partnership with ACAC. This portfolio has performed solidly through various cycles and we expect it to provide attractive and profitable growth opportunities along with further diversification of our reinsurance portfolio.
“We are confident that the talented team at ACAC will ensure sound underwriting and enhanced efficiency as it delivers for its agents and clients. In addition to providing a significant level of reinsurance capital, Maiden will provide its full range of technical support and value-added services focused on assisting ACAC to achieve success.”
Maiden Holdings is a Bermuda holding company which offers customized reinsurance products and services to regional and specialty insurance companies in the US and Europe.