Banyan Risk, the Bermudian-based specialist managing general agent, has launched a new underwriting venture focused on one of the most difficult areas of the United States property insurance market: wildfire risk.

Red Fox Risk will operate under the Banyan umbrella and provide cover for commercial properties and high-value homes in California and the western United States with high wildfire exposure.

The launch extends Banyan’s Bermudian-based specialty underwriting platform into a market where insurers have struggled to offer consistent capacity, especially for properties that need non-admitted excess and surplus coverage.

Red Fox will use granular property information, geospatial data and catastrophe analytics alongside underwriting judgment to assess individual risks. It will initially offer up to $10 million in primary limits.

Capacity will be provided by Argenta Syndicate 2121 at Lloyd’s and highly rated reinsurance partners, according to Banyan.

Tim Usher-Jones, chief executive of Banyan Risk, said the market needed more than just insurance capacity.

“Wildfire is a market where there is clear demand for sophisticated underwriting and durable capacity,” he said. “The answer is not simply more capacity; it is a better understanding of the risk.”

The venture will be led by Brian Espie and Sarah Kennedy, who previously held senior roles at Kettle, an insurance business focused on wildfire risk.

Mr Espie, who will serve as CEO, has more than two decades of insurance and reinsurance experience. Before joining Kettle, he was head of North American reinsurance at Fidelis Insurance and held roles within Tokio Marine Group, including at Tokio Millennium Re in Bermuda.

Ms Kennedy, who will serve as chief underwriting officer, previously led insurance at Kettle and was vice-president and head of E&S property at The Hanover Insurance Group.

Banyan, which was founded in 2021 and is regulated by the Bermuda Monetary Authority, said Red Fox reflected its strategy of backing experienced underwriting teams with technology, data analytics, infrastructure and distribution support.

The MGA already underwrites across several specialty lines, including inland marine and marine property. Its latest move adds a US property-cat exposure at a time when wildfire is a major concern for re/insurers, brokers and property owners.

Mr Espie said Red Fox wants to build a sustainable portfolio rather than just respond to changing market conditions.

“Red Fox is built around disciplined risk selection and portfolio management,” he said. “Our goal is to work closely with brokers and capital partners to create sustainable solutions for wildfire-exposed property, not simply react to the market cycle.”

Ian Burford, underwriting director and active underwriter at Argenta Syndicate 2121, said that sustainable wildfire capacity depended on specialist expertise, strong data and disciplined portfolio management.