Fronting and Captives

Exceptional Fronting Services and Captive Solutions

AF Specialty provides fronting services and captive solutions to insurance carriers, managing general agents, reinsurance intermediaries, syndicates and captive managers seeking a fronting facility to place well-managed, turnkey commercial property and casualty programs.

This exceptional product provides eligible partners with multiple entities of admitted and non-admitted fronting paper that is rated “A” (Excellent) and level 12 financial strength, which allows us to write a broad spectrum of coverages on a national platform.

Captive Defined

A captive is an insurance company formed and owned by an insured as a risk financing/risk transfer mechanism structured to allow the insured to “self-insure” all or a portion of its insurance risk.

Fronting Defined

Fronting is renting a product of an insurance company to another insurance entity for a fee. The product rented can be insurance paper, operational services or a combination of both. AF Specialty specializes in renting insurance paper, as well as select backroom services.

How We Are Different

AF Specialty customizes each program to fit the needs of its partner.

AF Specialty is unique from other fronting carriers with its ability to retain underwriting risk on select accounts (approximately 20% or less, supported by AF Group’s $1 billion of GAAP equity) based on a specific program’s profitability and supporting data.

AF Specialty also has over 100 years of history dealing with reinsurance partners, allowing for long-term partnership and stability for the fronted program.

AF Group’s fronting services are supported by best-in-class in-house underwriting and claim management, actuarial support and flexible reinsurance structures that are enhanced with captive solutions, promoting an effective and expedient evaluation process from start to finish.

Partnership Criteria

  • Existing turnkey program with policy issuance system and bridge capabilities
  • Generates a minimum of $10 million of annualized premium
  • Business plan supported by pro forma financials
  • Three-to five-year loss history (100% reinsured programs may be considered)
  • Well-articulated niche, state and industry guidelines that target commercial property and casualty products
  • Product distribution system
  • Strong counterparty creditworthiness
  • Best-in-class operational services

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