American Global Insurance has agreed a quota share reinsurance arrangement with two corporately owned Lloyd’s syndicates for its healthcare indemnity insurance business.
The arrangement covers risks written by American Global Insurance, Inc. (AGII), the group’s main insurance subsidiary.
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Under the deal, the Lloyd’s syndicates will take on 50% of the premiums and claims linked to AGII’s medical health indemnity insurance portfolio.
AGII is a commercial insurer and reinsurer operating under the sovereign jurisdiction of the federally recognised Modoc Nation in Oklahoma, US.
The American Global Group provides risk management, insurance and reinsurance, with its main underwriter, AGII, specialising in supplemental wellness and healthcare indemnity programmes for small and mid-sized employers.
An American Global Group spokesperson said: “The support provided through this agreement reflects confidence in AGII’s underwriting platform and healthcare indemnity programmes.
“The partnership also enhances the company’s ability to manage risk exposure while continuing to serve employer groups seeking alternative healthcare coverage solutions.”
The company said a number of AGII’s insurance products are structured to fit the Employee Retirement Income Security Act of 1974 and relevant Internal Revenue Code rules.
These programmes are intended to support employer-sponsored healthcare arrangements within existing federal regulatory frameworks.
AGII has also created healthcare plans for possible future use in selected US markets as alternatives to Affordable Care Act marketplace products.
The Commissioner of Insurance for the Modoc Nation said the arrangement is notable, adding that AGII is believed to be the first tribal insurance company to set up a working relationship with Lloyd’s syndicates for this form of reinsurance support.
“With the backing of one of the most established insurance and reinsurance markets in the world, the American Global Group is positioned to continue developing healthcare insurance solutions for employers,” the commissioner said.
