A unit of one of the world’s largest insurers is offering on-island fronting for captive insurers with US parent companies.Fronting companies are typically found in the US, but according to the Bermuda Insurance Update, an industry journal, Bermuda captive owners will now be able to take advantage of their annual business trip to the Island to arrange fronting arrangements.The first-of-its-kind offering, the report says, comes from Lexington Insurance Company, a subsidiary of Chartis (formerly and soon to be known again as AIG). The company recently expanded its US-based Captive/Alternative Risk Transfer (ART) operation to Bermuda to provide customised fronting arrangements for captives and other ART vehicles. Lexington executives say these solutions will be available as a stand-alone option or in conjunction with other Chartis products.“Since coming to Bermuda in the 1940s, AIG has been a committed member of the insurance marketplace and community here,” Lexington President, David Bresnahan told attendees of the recent Bermuda Captives Conference. “We are very proud that AIG is recovered, profitable and closer to the finish line on the US government involvement.”“In keeping with that continued commitment, Lexington is pleased to announce that our Bermuda branch is now open to assist captives and insurers with their fronting needs,” he said.Programme manager, Lisa Lacey has relocated from Boston to Bermuda and is tasked with reviewing the company’s capabilities with risk managers, brokers and their clients.“We currently provide fronting arrangements for US-driven business out of our Boston office. Quite a lot of that business is either reinsured or managed in the Bermuda market,” Ms Lacey said.“We feel that having Lexington staff here is an advantage because when risk managers come to Bermuda they would like to have the entire business placed before they leave,” Ms Lacey said. “They can get their reinsurance, talk to their captive managers, law firms and audit partners. They can do all of that right in Bermuda. But there has never been an on-island facility for them to also obtain their fronting. We see this as a growth area for Lexington.”Lexington employs 45 people here in Bermuda who work alongside 116 Chartis colleagues.Company officials tell The Royal Gazette they have no plans to increase staff in Bermuda at the moment. Ms Lacey will work directly with risk managers, brokers and captive managers. Account services support will be provided jointly, they say, from the Bermuda and Boston offices.