Fleming Re completes novation of Duarte workers’ comp liabilities
Fleming Reinsurance has completed the novation of the workers compensation deductible layer of Duarte Nursery, a family owned and operated permanent crops nursery located near Modesto in the Central Valley of California.
The novation provided Duarte with full legal finality and a release of capital. Fleming Re will work closely with third party administrators and front companies to ensure Duarte continues to receive the same quality care and coverage as before.
Fleming Re’s chief executive, Eric Haller, said: “This transaction is a testament to Fleming Re’s reputation as a trusted run-off provider as this novation was executed with a counterparty that was a captive member in a previous transaction.”
Haller noted that many companies are looking for sources of capital due to the challenging economic circumstances. “Run-off transactions are a great way to access encumbered capital to support companies’ operations,” he said. “We are seeing a large increase in demand and will complete several more transactions over the coming months.”
Duarte Nursery said it had felt comfortable working with Fleming Re based on previous experiences. “As with any transaction, trust and transparency are important and they were able to provide both,” it added.