Palomar Holdings enters the fronting market
The holding company for a Bermuda-based reinsurer has entered the fronting sector of the United States insurance market.
California-based Palomar Holdings, Inc, an AM Best rated “A-IX” specialty insurer, said its fronting business, known as PLMR-FRONT, will partner with reinsurers, insurance carriers and managing general agents to enable the design and operation of customised insurance programmes.
The company said PLMR-FRONT will provide fronting paper on both an admitted and non-admitted basis through Palomar Specialty Insurance Company and Palomar Excess and Surplus Insurance Company, respectively.
The fronting team will target opportunities across multiple lines of business where traditional insurance is difficult to source.
New product lines may include but are not limited to cyber, non-standard auto, trucking, warranty, and workers' compensation.
In addition, Palomar’s entry into the fronting space will allow the specialty insurer to act either as a non-risk bearing insurance entity with a pure fronting model or participate in risk through a hybrid model, the company said.
Palomar Holdings, Inc is the holding company of subsidiaries Palomar Specialty Insurance Company, Palomar Specialty Reinsurance Company Bermuda Ltd, Palomar Insurance Agency, Inc and Palomar Excess and Surplus Insurance Company.
The Bermuda operation is licensed as a Class 3A insurer by the Bermuda Monetary Authority.
Palomar said it focuses on the provision of specialty insurance for residential and commercial clients.
Its principal insurance subsidiary, Palomar Specialty Insurance Company, is an admitted carrier in 32 states and has an AM Best financial strength rating of “A-” (Excellent), the company said.