Relaunched ClearView Underwriting adds construction/renovation program with A rated paper

ClearView Underwriting – the repositioned former Strata program – has launched an innovative construction/renovation offering with an A rated carrier as it looks to diversify and drive growth after a multi-year turnaround, Program Manager can reveal.

According to sources, the builders’ risk program soft-launched at 1 July and has been gaining traction since the start of last month under a partnership with select distribution partners.

ClearView Underwriting is part of Amynta-owned ClearView Risk.

The launch comes after a turnaround at Strata Underwriters – which is understood to be in the process of being renamed ClearView Underwriting – that began with a change of management at the start of 2022.

Former management members including erstwhile CEO Parker Rush left the business, with Scott Brock brought in as president of ClearView Risk as he was moved over from Scion Underwriting, which he led when it was acquired by Amynta from Brit.

Former Chubb veteran Kerry Besnia was also appointed to lead Strata and turn around its underwriting results.

ClearView Risk had been acquired by Amynta’s TAG Agency Holdings for $105mn at the start of 2019, in a transaction that is the subject of ongoing litigation.

After a number of loss-making years on the core habitational program, our sister publication The Insurer reported in March 2022 that Strata was working on a new de-risked offering after telling distribution partners it was non-renewing accounts after failing to secure sufficient reinsurance capacity.

Hab reboot

Sources said that the previous program was effectively put into run-off, with the habitational offering now in the market having been completely re-underwritten and repositioned.

Other actions taken include tightened controls around accounting.

Although the core habitational program still focuses on condos, townhomes and apartment buildings, its geographical footprint has been shifted away from wind-exposed coastal exposures, while it has moved away from high limits of up to $50mn per risk to be capped at around $10mn.

Strata was able to hold on to its relationship with AF Group, with the specialty carrier’s non-admitted paper and core reinsurance support maintained in a deal brokered by Howden Re.

It is thought that after effectively taking the book down to zero, in the last two years it has been built back up to close to $60mn of written premium – albeit well short of the circa $200mn that was being written on the previous loss-making program.

The rebooted program has also been profitable for its capacity providers so far, with sources pointing to a loss ratio of less than 60 percent in the treaty year running to 30 June 2023, and only around 25 percent in the treaty year running to 30 June 2024.

The attritional loss ratio is thought to be only around 10 percent.

Although the book still has a Texas focus, the state is thought to now contribute just over half of overall premiums, down from 90 percent a few years ago.

As previously reported, Amynta’s TAG Agency Holdings is in litigation with former ClearView Risk owners Greenhill Capital Partners and two of the MGA’s former leadership team over allegations of fraudulent misrepresentation in relation to its financials.

Allegations in the litigation – which the defendants are seeking to dismiss – include that the losses on the legacy Strata program were concealed by “borrowing” money from the fiduciary trust account holding program payments to claims for which it had not bought enough reinsurance.

Amynta and ClearView did not immediately respond to a request for comment on this article.