Clear Blue adds duo to support continued growth of repositioned portfolio

Clear Blue has hired Falls Lake’s Bakari Watkins as head of claims along with Dave Horn in a senior actuarial role as it continues to add to its senior ranks to support the growth trajectory of its repositioned portfolio, Program Manager can reveal.

The fronting carrier is also looking to add capital to its balance sheet, likely in the form of a surplus note, before its statutory annual statement regulatory filing in February 2025 as it positions itself to address a pipeline of new program opportunities.

Watkins, who joins as senior vice president, was most recently vice president of claims at James River’s fronting platform Falls Lake Insurance, which is in the process of being sold.

Horn was vice president and senior actuary at the insurer, leading actuarial pricing of Falls Lake’s new and renewal programs, according to his LinkedIn profile.

The hires follow that of Lee Brenner, the former Swiss Re North America executive who joined Clear Blue earlier this year in the newly created role of chief of insurance operations.

At Swiss Re North America, Brenner had overseen the reinsurer’s MGA and program business.

Sources said the hires are aligned with Clear Blue’s strategy of strengthening its talent base as well as improving the quality of the transactions and programs it onboards.

The fronting carrier – which is led by Jerome Breslin as CEO – has been repositioning its portfolio over the last year or so after successfully navigating the challenges presented by the Vesttoo fallout. It ended 2023 with $1.75bn of gross written premiums after securing an affirmation of its key A- AM Best financial strength rating.

As part of a portfolio trimming exercise, Clear Blue is thought to have shed a number of programs that either didn’t meet its risk appetite or became more challenging to secure reinsurance for.

Among the programs no longer in the carrier’s portfolio are renters insurtech Rhino and Embroker.

It has added the majority of programs at construction MGA Tradesman, however, as well as a number of other deals, including taking over from Church Mutual by providing its paper to Precision Risk Management to offer the Federal Crop Insurance Program to ranchers and farmers.

As previously reported by this publication, the MGA’s share of the business is expected to represent around $120mn of premium this year.

Sources said the hybrid fronting carrier has a strong pipeline of potential programs to add, including new opportunities in lines of business outside commercial auto and construction general liability, which account for a significant proportion of its current book.

These include looking at other crop opportunities, niche areas such as moving and storage programs, as well as workers’ compensation, which hadn’t previously been in scope for Clear Blue.

This publication reported earlier this year that the insurer was thought to be aiming for a conservative $100mn to $150mn in top-line growth in 2024 that would take it to between $1.85bn and $1.9bn in GWP.

It ended last year with $221mn in surplus and 19 programs in its portfolio, and was expected to target the addition of three to five programs in 2024.

In an August note, rating agency KBRA said Clear Blue has “leveraged lessons learned” from the Vesttoo scandal last year and its reputation and market position have remained intact.

“Management successfully implemented solutions that addressed its market position and reputation,” said the firm.

Clear Blue did not immediately respond to a request for comment.