Hagerty Re unaffected by parent’s new carrier plans

Bermuda-based captive insurance company Hagerty Reinsurance won’t be affected by its parent company’s takeover of another insurer, AM Best said.

Hagerty Insurance Holdings has entered into a stock purchase agreement with Everspan Insurance Company to acquire all the issued and outstanding capital stock of Consolidated National Insurance Company.

Hagerty, the ultimate parent of Hagerty Re, plans to use CNIC to become a new carrier platform and provide a differentiated line of business, allowing it to continue to drive premium growth and retention of underwriting profits.

AM Best said that the acquisition is not expected to have any material impact on Hagerty Re’s balance sheet strength or any near-term material impact on the ultimate parent, Hagerty.

However, the rating agency added that it will continue to monitor the transaction through closing and potentially take rating action should any factor associated with the deal change materially.