Connecticut passes agency captives legislation
THE CONNECTICUT General Assembly
has passed a bill that would allow
licensed insurance agents to establish
an agency captive insurance company
to insure against risks covered by the
policies they sell, subject to specified
SB 377 defines an agency captive
as a captive insurer that is owned or
controlled by licensed insurance agents
or producers; only insures against
risks covered by insurance policies
sold, solicited, or negotiated through
its owners or controllers; and does not
insure against any risks covered by a
health insurance plan.
The bill was passed on May 9 and after
being signed by Connecticut governor
Dannel Malloy, will be effective July 1.
Under the bill, an agency captive in
Connecticut must insure only against
commercial policy risks placed by or
through one of its owners or controllers.
The bill requires an agency captive
insurer to have and maintain at least
$500,000 in unimpaired paid-in capital
and surplus. l
Brazilian captive reinsurer rated ‘Excellent’ amid tough
RATINGS AGENCY AM Best has
balance sheet strength, which AM Best
affirmed the financial strength rating
categorises as strongest, as well as
of A- (Excellent) of J.Malucelli Re and
its adequate operating performance,
J.Malucelli Seg, collectively referred to as
neutral business profile and appropriate
J.Malucelli. The outlook is stable.
enterprise risk management.
Domiciled in Brazil, J.Malucelli Re
The positive rating factors are partially
mainly acts as a captive reinsurer for
offset by J.Malucelli’s concentration risk
J.Malucelli Seg, an organisation that has
as essentially a monoline surety writer with
been writing surety directly for more than
business concentration in a single country.
J.Malucelli’s future plans to mitigate this
J.Malucelli writes the DPVAT (motor
third-party liability) compulsory auto
insurance as part of a pool of insurers.
J.Malucelli benefits operationally from
its minority shareholder, The Travelers
Companies (ownership is 49.5 percent).
The ratings reflect J.Malucelli’s
risk include expansion into related lines of
business and geographic diversification
into other parts of Latin America.
AM Best suggested that Brazil’s re/
insurance market continues to be highly
competitive, with home-grown and global
re/insurers vying for market share.
“Despite Brazil’s economy showing
initial signs that the economic recession
is ending, companies are seeking
international expansion while keeping
an eye on the growth opportunities in
the domestic insurance market,” AM
“Surety remains one of the fastest-growing
segments in the re/insurance
industry in Brazil.” l
iStock Photo / benedek
“The ratings reflect
J.Malucelli’s balance sheet
strength, which AM Best
categorises as strongest.”