TigerRisk Capital Markets & Advisory acted as sole Transaction Advisor to Orchid Underwriters and Placement Agent to TRUE.įounded in 1998 and based in Vero Beach, Fla., Orchid specializes in providing specialty insurance products for homeowners and small businesses throughout the United States and the Caribbean. When a claim occurs, it will work with the member on additional loss-control measures to reduce the chances of similar claims happening in the future, the company said. TRUE will target customers focused on preventing and limiting damages from hurricanes and other severe weather events in addition to preventing non-weather losses, and will offer explicit discounts for shuttered windows, wind-resistant glass, water detection devices and alarm systems. TRUE said it will immediately leverage the scale and operational capabilities of both Homesite and Orchid to deliver “a premier level of service to members and agents.” Its enterprise risk management program will utilize a “proven structure in the ‘three lines of defense approach.'” Best said the assigned ratings also consider financial and operational support provided by American Family Insurance Group, which has provided capital to TRUE through surplus notes, is anticipated to participate in the reinsurance program and support select day-to-day services. “AM Best assesses TRUE’s operating performance as adequate based on the exchange’s clearly defined five-year business plan that contemplates implementation and execution risk for the new exchange,” the ratings agency noted.īest added that TRUE will initially operate with a concentration in Florida with a select market and will require a period of time to establish its brand. Capital levels are measured against a risk adverse investment strategy and “TRUE’s intentions to maintain a robust reinsurance program backed by highly rated reinsurers,” Best said. TRUE’s service model will utilize technology in underwriting, claims, and catastrophe exposure management, designed to be successful higher-risk areas.ĪM Best said TRUE’s balance sheet strength assessment is based on initial risk-adjusted capital capacity that meets AM Best’s guidelines for newly formed entities through a five-year start up period. ![]() The exchange is managed by an attorney-in-fact (AIF), which, in TRUE’s case, will be Delaware-based Trusted Resource Underwriters, LLC. A reciprocal insurance company is an unincorporated association owned by its policyholder-members who exchange insurance policies to spread risk by pooling their money together. “Given what we are seeing in the market, we are proactively developing new admitted products that meet the needs of risk-conscious customers and agency partners,” said Brad Emmons, president and chief executive officer of Orchid Underwriters.Īccording to TRUE, its organizational structure as a reciprocal insurance company aligns with its customer focus. Orchid will begin offering TRUE to select agent partners. In addition to Lorion, the company’s management team includes Stephen Russell, former chief actuary of Tower Hill Insurance Group and chief underwriting and actuarial officer of American Modern Insurance Group, as its chief underwriting officer and insurtech and insurance operations veteran Scott Soderstrom as its chief operating officer. He also serves on its board of managers along with executives of Orchid TowerBrook Capital Partners, a private equity firm and majority owner of Orchid Homesite American Family Insurance, Homesite’s parent and a manager independent of those companies. Lorion has nearly 25 years of experience in the industry, including leadership positions with several large property casualty carriers, including Homesite, Hanover Insurance Group and Travelers Insurance.Īs CEO, Lorion leads the strategy and operations of the company. ![]() “TRUE offers insurance solutions through a collaborative relationship with homeowners to help prevent and mitigate risks,” he added. The company was licensed by the Florida Office of Insurance Regulation in October and was assigned an AM Best rating of A- and a long-term issuer credit rating of “a-” with a stable outlook this month.Īccording to Michael Lorion, TRUE’s chief executive officer and former chief financial officer of Homesite, the company has a strong financial backing and broad coverage offerings with a “commitment to best-in-class service.”
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