Royal & SunAlliance USA has teamed up with Bermuda-based Universal Reinsurance for its new, ground breaking Personal Insurance Agency Captive Program which the company said could double the profit potential of member agencies compared to traditional profit-sharing agreements.

The companies said that for several years, Universal Reinsurance has worked closely with Artis(R), Royal & SunAlliance's Commercial Lines Alternative Risk Transfer business which would contribute to the smooth implementation of the innovative Royal & SunAlliance Personal Insurance Agency Captive program. "The creation of a Personal Insurance Agency Captive Program raised some unique issues," said Mike McNally, vice president of Personal Insurance Marketing at Royal & SunAlliance.

"Our existing relationship with Universal Reinsurance, which actually owns the registered trademark Rent-A-Captive(R) in the US and UK, is invaluable to the success of the program."

The Royal & SunAlliance Personal Insurance Agency Captive Program was introduced earlier this year and is the centrepiece of the company's personal insurance strategy. Under this new program, agencies share in the proceeds from their book of business in addition to earning commissions, more than doubling their profit potential over traditional profit-sharing agreements. Royal & SunAlliance's Personal Insurance business is part of the company's Consumer Division, which provides customised insurance coverages including homeowners, standard and preferred auto, nonstandard auto, boat, umbrella, motorhome, and flood. The Division also offers credit-related insurance programs for banks, credit unions, leasing/finance companies and automobile/equipment dealerships.