AmRisc Launches Calais Reciprocal Insurance Exchange
AmRisc LLC, a subsidiary of CRC Group, has announced the launch of Calais Reciprocal Insurance Exchange, designed to expand capacity for coastal commercial excess and surplus (E&S) property insurance. The new exchange has received a financial strength rating of A- (Excellent) from AM Best, reflecting its strong financial stability.
Calais has been capitalized with $100 million and is domiciled in Illinois. It will focus on providing coverage for commercial E&S property risks, particularly in regions facing challenges due to limited market capacity and rising demand. The exchange will also offer coverage for California Difference in Conditions insurance, addressing specific needs in the western United States.
According to AmRisc, Calais is intended to help stabilize the coastal insurance market, which continues to face volatility driven by increasing weather-related losses, reduced reinsurer appetite, and regulatory challenges in certain states. Brian Reid, CEO of AmRisc, stated, “We are pleased to announce the formation of Calais Reciprocal Insurance Exchange, which will further allow us to serve the coastal commercial E&S property market that we have supported for more than 25 years.” Laura Beckmann, president and COO of AmRisc, added that the establishment of Calais introduces a fresh source of capacity to the market for brokers while ensuring greater long-term stability for policyholders.
The $100 million in funding for Calais was provided by a group of institutional investors led by Stone Point Capital and Clayton, Dubilier & Rice (CD&R), along with other financial and strategic backers. These investors are expected to contribute oversight and financial support as Calais grows its portfolio. Howden Capital Markets & Advisory acted as the exclusive financial advisor to AmRisc, while Willkie Farr & Gallagher LLP provided legal and regulatory counsel for the transaction.
The creation of Calais aligns with a broader industry trend in which managing general agents and program administrators are forming or partnering with risk-bearing entities to support capacity-constrained markets. This move is expected to provide additional stability and capacity to the commercial E&S property insurance market, particularly in coastal regions facing significant challenges.
