A.M. Best Comments on NYMAGIC, INC.’s Proposed Acquisition by ProSight Specialty Insurance Holdings, Inc.

OLDWICK, N.J., Jul 15, 2010 (BUSINESS WIRE) — A.M. Best Co. has commented that the financial strength rating (FSR) of A (Excellent) and issuer credit ratings (ICR) of “a” of New York Marine Group (NY Marine) and its members and the ICR of ‘”bbb’” of its ultimate holding company, NYMAGIC, INC. (NYMAGIC) (NYM 25.33, +4.48, +21.49%) , are unchanged following the announcement of NYMAGIC’s proposed acquisition by ProSight Specialty Insurance Holdings, Inc. (ProSight Specialty Insurance). The members of NY Marine include New York Marine And General Insurance Company and Gotham Insurance Company.

In addition, A.M. Best has commented that the FSR of A- (Excellent) and ICR of “a-” of NY Marine’s affiliate, Southwest Marine And General Insurance Company (Southwest Marine) (Phoenix, AZ), and the debt rating of “bbb” on $100 million 6.5% senior unsecured bonds due March 2014 of NYMAGIC are all unchanged. The outlook for all ratings is stable. All companies are domiciled in New York, NY, unless otherwise specified.

Pursuant to a definitive agreement entered into with ProSight Specialty Insurance, NYMAGIC will be merged with PSI Merger Sub Inc., a wholly owned subsidiary of ProSight Specialty Insurance formed for purposes of the transaction. NYMAGIC will survive the merger as a wholly owned subsidiary of ProSight Specialty Insurance.

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Public Transit Liability

More Liability Options For US Public Transit

The US insurance market for public transit is finally opening up and offering more good choices from A 15 US domiciled carriers, even for accounts with light rail! After 9/11, the market shrank substantially for all insured’s, including public transit authorities.  Due to catastrophe potential and high limit needs, the market place for these unique public entities has been slow to recover.  The long sustained profitability for insurance carriers and the resulting soft market we see today, coupled with onshore movement of the Bermuda and London based carriers has expanded US offerings in both the lead SIR options and the capacity.  With the additional options, there is competition in this segment and clients are seeing options with more coverage at lower prices! You and your public entity transit client have a choice! You can now access US domiciled or multiple carriers, instead of going overseas or being locked into one carrier for your liability coverage. The US markets are strong and ready to compete for this once difficult business.

Global Intermediaries has the specialized brokerage force to bring cutting edge insurance solutions and competition to the public transportation marketplace.

Give us a call today to discuss the possibilities for your public transit risk.

541-344-5411

 

Section 287g Insurance Program

Have a jail and looking for extra revenue? Read this article!

Public Entities across the country are signing contracts that allow the federal government to use the empty beds in their jails. This program allows public entities to bring in extra revenue, but at the same time introduces new risk. In reponse, GIE has designed a program specifically for Section 287g contracts and the liability associated with these programs. The program is designed for entities that either want to segregate their claims for ICE, or would like to buy down their SIR for the ICE program.

Here are the program basics.

Coverage provided:

• A13 carrier
• Non – admitted policy
• Attachments down to $50k
• Limits up to $5mil
• GL for the jail portion used
• Police professional for the jailors
• Coverage for any law enforcement related auto accident
• Coverage for the nursing staff at the Jail

Items needed to quote:

• Police professional application
• Full loss runs for the jail for the last 6 years
• Number of inmates, jailors, autos and nurses specific to just the 287g program.

For more online resources visit the links below.

• Gov: ICE Fact Sheet
• Article: Secure Communities
• Article: Extra Revenue From ICE Program

NYMAGIC Excess Workers Comp

Global Intermediaries has seen the expert Underwriters at Midlands Management, the MGA for New York Marine & General Insurance Company’s (NYMAGIC) nationwide Excess Workers’ Compensation program, increase their focus on large public entities around America. What this means for you, the public entity or the public entity broker, is another great choice in carriers!

NYMAGIC performs great on accounts over $100,000 in policy premium and really shines on large accounts where you need an Underwriter to listen to you.  From large single self insureds, to JPA’s, to larger pools, the seasoned Underwriting staff at Midlands Management has the expertise to understand your risk and offer creative solutions.  If you do not yet have a quote on your Excess Workers’ Compensation account from Midlands Management on behalf of NYMAGIC, don’t hesitate, contact GIE today to see just how good they are!

Contact GIE Today – 541-344-5411

Judd@globalre-int.com

How a Buffer Layer Can Save You Money and Grief

Did your SIR go up and you didn’t want it to?  Try a Buffer Layer approach.

Last year, public entities across America saw an increase in their SIR’s and many don’t have the loss reserves to support the higher SIR. This leaves these public entities extremely vulnerable in a large loss situation. Should a large loss scenario occur, the risk manager would have to figure out how to externally fund the higher SIR, either with higher taxes or by floating a bond…Not exactly what a risk manager is excited to face with all the other challenges of today.

To counteract this higher SIR move by the standard public entity companies, we are seeing the emergence of a specialty market that offers “Buffer Layers”. These Buffer Layers allow the client to keep the same lower SIR they prefer and are funded for.

Here’s your typical Buffer Layer scenario: 2008 SIR set at $2mil, 2009 renewal offered at a $4mil with some sort of discount.  The client isn’t funded for the $4mil SIR, so we provide a $2mil X/S $2mil Buffer Layer. These Buffer layers do cost money, but they have a decent payback period of less than 10 years in most cases. Usually, the client uses the discount from the insurance placement, and other available resources to purchase the buffer layer.

The emerging companies providing the $1mil or $2mil layers are specialized and use a more primary loss pick rating system approach.  These buffer layers resemble insurance that you’re more likely to use than the excess insurance of today, which companies are betting you don’t use…With the use of buffer layers, it is really a win / win situation. You get the SIR you financially need at a price you can handle and avoid the funding issue during a large claim which could lead oversight of your department decision making powers.

GIE has been a specialized force in the public entity world for nearly 20 years and always stays top of emerging trends in the insurance world. Call us today to learn more about the use of this emerging “Buffer Layer” technique!

Welcome to GIE’s New Site

Global Intermediaries is proud to announce the launch of their brand new website.

Working and keeping up with GIE will now be easier than ever!

Here are just some of the new features:

• Dedicated Application and Resources page
• Custom Fillable PDF Forms
• Access to GIE Newsletters, Blogs, and Photos
• Detailed information on Products and Coverages
• Events Page – Know what conferences GIE is attending