Specialty insurer Palomar Holdings has entered the fronting sector of the US insurance market. Palomar’s fronting business, known as PLMR-FRONT, will provide fronting paper on both an admitted and non-admitted basis through Palomar Specialty Insurance Company and Palomar Excess and Surplus Insurance Company respectively.
According to Palomar, PLMR-FRONT will partner with reinsurers, insurance carriers and managing general agents to enable the design and operation of customised insurance programmes. It said the fronting team will target opportunities across multiple lines of business where traditional insurance is difficult to source, including cyber, non-standard auto, trucking, warranty and workers compensation.
In addition, Palomar said its entry into the fronting space will allow it to act either as a non-risk-bearing insurance entity with a pure fronting model or participate in risk through a hybrid model.
“PLMR-FRONT is a logical extension of Palomar’s franchise in the specialty insurance market. It represents an entrance into a sector that will generate new income streams and compelling risk-adjusted returns for our shareholders. Our admitted and E&S platforms offer the requisite infrastructure to execute PLMR-FRONT and also allow us to participate alongside our partners where appropriate,” said Mac Armstrong, chairman and chief executive officer. “Ultimately, the fronting sector represents another opportunity to capitalise on changing market dynamics and dislocations, while adhering to our focus on sound underwriting and profitable growth.”