US legacy insurance business services specialist Genesis Legacy Solutions (GLS) has issued its first loss portfolio transfer agreement to an affiliate of Florida’s Cypress Property & Casualty Insurance Company.
The LPT, through Genesis’s Vermont cell, reinsures the commercial general liability portfolio written by Cypress in Florida and Texas from 2008 to 2020.
“We are delighted to have issued this first LPT from our newly formed Vermont captive cell,” said GLS CEO Brian Johnston. “We worked closely with both the Cypress management team and the Vermont Department of Financial Regulation Captive Insurance Division and now have a template for future transactions under the Vermont captive legislation.”
GLS is part of Maiden Holdings, the Bermuda based holding company with insurance subsidiaries that provides specialty reinsurance products for the global property and casualty markets. Its third-quarter results published yesterday recorded a profit of $2.9 million, up from $2.2m in the same quarter last year.
Commenting on the results, Co-CEOs Patrick J Haveron and Lawrence F Metz said: “Maiden is well-positioned heading into the fourth quarter. Our Genesis Legacy Solutions unit has completed its first transaction, an LPT/ADC agreement, and its pipeline for current transactions is robust.”
Johnston added: “GLS worked closely with the Maiden team on this transaction, and we look forward to executing many more.”
Cypress was advised on the transaction by Stonybrook Risk Management, the risk management division of investment and merchant bank Stonybrook Capital. It also advised the company’s parent Cypress Group Holdings, on its majority sale to an investment group led by Milestone Partners, announced in January.
In March, the insurer was one of several in Florida that rating agency Demotech Inc said needed to improve their finances to maintain an “A” rating.
Genesis Legacy Solutions (GLS), Loss Portfolio, Maiden Holdings, Cypress Property & Casualty Insurance Company, Insurance, Reinsurance, North America