KMC unveils programme administration agreement with TSA
Knight Management Company, a Knight Solutions Insurance Agency (KMC) and Triangle Surety Agency (TSA) have entered into a program administration agreement.
KMC has agreed to provide paper to write reclamation, commercial, and contract surety to TSA. TSA will be provided access to KnightBrook Insurance Company (KBIC) paper. Stonybrook Capital & Risk Management was the exclusive intermediary for the transaction and led all structuring efforts and negotiations.
Parent company Knight Insurance Group is a provider of capital support and underwriting capability for niche property and casualty insurance programs. Knight also operates a rent-a-captive solution and captive management services through its segregated portfolio company.
KBIC is KMC’s admitted insurance company, which is licensed to write P&C business in 49 states and Washington D.C. KBIC is domiciled in Delaware while they maintain headquarters in Los Angeles, California. KBIC has an AM Best rating of “A-“ Excellent, which can be attributed to KBIC’s strong underwriting guidelines and organic surplus growth through new and remaining business.
First Surety is a West Virginia-domiciled P&C Company with licenses in Indiana, Ohio, Utah, and West Virginia. It is a subsidiary of Jacobs Financial Group, which also owns 100% of Triangle Surety Agency, the general agent for First Surety. Triangle Surety will act as the program administrator for the program. The agreement will approximately double the amount of business First Surety will be able to write in the next 12 months, with continued growth after that.
KMC has given First Surety the authority to issue bonds on their behalf in 18 states. First Surety is providing 90% quota share reinsurance agreement with KBIC.
Founder and chief executive of Jacobs Financial Group, John Jacobs said: "We look forward to working with Knight, an Insurance Company specialising in Surety. Their vast knowledge in the surety business speaks volumes. First Surety is eager to introduce its clients to Knight. Stonybrook was the utmost professional broker throughout the entire transaction and we remain impressed with the depth and breadth of resources the Firm can bring to the table time, and time again.”
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