Nymagic, an insurance holding company, has terminated its program management agreement with Southern Marine & Aviation with regard to business attaching on or after January 1, 2008.
Under the program management agreement, which commenced in August 2003, Southern Marine & Aviation (SM&A) wrote ocean cargo business on behalf of Nymagic’s subsidiary, New York Marine & General Insurance Company.
George Kallop, president and CEO of Nymagic, commented: The cumulative results of the SM&A book during the term of the agreement have had little or no positive impact on the bottom line. Mutual marine office (MMO), a Nymagic subsidiary, has written ocean cargo insurance for more than 40 years and continued to do so very successfully during our relationship with SM&A.
We concluded that going forward the company and its insurers would be better served by having MMO exercise complete control over ocean cargo production and underwriting.