Tradesman Program Managers, a specialist managing general agent (MGA) wholly owned by Roosevelt Road Capital Partners, has secured replacement reinsurance cover for the section of its tower that had been provided through a Clear Blue fronted arrangement with insurtech Vesttoo.
The company has even brought its own reinsurance company into the mix, with Roosevelt Road Re, Ltd. now participating in the Tradesman reinsurance program.
In a communication sent to its brokers, Tradesman Program Managers explained that it has been focused on “providing solutions to a market crisis,” working with business partners to proactively secure replacement coverage.
“We all have a vested interest in finding a timely resolution to this matter while seeking answers from the appropriate, ongoing investigations and audits,” the company said.
Adding that, “Speculation without action is easy and, often, unproductive. At Roosevelt Road Capital Partners (RRCP), we chose action.”
The company has been working to help its program fronting partner Clear Blue to secure a solution that assisted them, while ensuring market capacity for its own programs.
As a result, “Vesttoo and reinsurer Corinthian have been removed and subsequently replaced on the reinsurance panels reinsuring the TPM programs fronted by Clear Blue,” the company said.
TPM stated that numerous reinsurers were keen to provide the replacement coverage, and that the market rallied to help Clear Blue “in a crisis not of its making.”
“The professionalism and pride demonstrated in this collaboration speaks well of those working with integrity in our industry,” the company said.
In addition and an additional boost for the group, Roosevelt Road Re is now included in the panel of reinsurers.
“The RRCP leadership are excited by this recent development, and as stated last week, Every market faces dislocation at some point and therein lies great opportunity,” the statement continued.
Tradesman Program Managers does not transact directly with Vesttoo, the company explained, adding that Clear Blue remains its fronting partner.
“TPM takes seriously our obligation to conduct thorough counterparty due diligence to protect our clients, policyholders and distribution channels, both domestic and international. Our spectrum of counterparties include internationally renowned brands and those who seek to transact, consult or service their clients in a reputable and legal manner,” the statement concludes
Finally, TPM also noted that it now intends to “continue to diversify and increase our panel of capacity providers” going forwards, as it follows its strategy of remaining focused on “clients’ needs and the opportunities that the (re)insurance market presents to us all in 2023/24.”
Tradesman is just one of the MGA’s that has needed to secure a replacement source of collateral or capacity to back reinsurance fronted to it via Clear Blue, or another fronting specialist, in the wake of the alleged collateral fraud issues linked to Vesttoo.
It’s encouraging to see the market coming together to provide solutions that enable continuity in capital, collateral and coverage.
Read all of our coverage of the alleged fraudulent or forged letter-of-credit (LOC) collateral linked to Vesttoo deals.