More D & O Side A Markets

No sooner did I get my new blog up than I received a note from Old Republic Insurance Company that they too have a Side A D&O liability insurance product.  We’ll be sure to invite them to participate in our next Report on that product (October 2010).

Our latest Report on Side A D&O products (October 2009) was very favorably reviewed by RBC Capital Markets’ Insurance Observations (Mark Dwelle’s very worthwhile weekly newsletter on insurance companies from an investor’s perspective); one of their readers must have passed it along to Chicago Underwriting Group.

So I am pleased to note that Old Republic has Side A D&O products, with up to $25 million capacity.  They are offering lead Side A/DIC, Excess DIC, and Independent Director products.

Markets they are not interested in generally include:

Special Purpose Acquisition Companies
Hedge Funds
Private Equity Investment Groups

BTW, Chicago Underwriters Group, Old Republic’s underwriting manager for this product, has an interesting D&O newsletter at http://www.cug.com/documents/newsletter/CUGCOMments-64.pdf.

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One response to “More D & O Side A Markets

  1. Dave Perkins of S.H. Smith, the E&S wholesalers, offered his thoughts on private company and not-for-profit interest in Side A D&O (I am posting it for him):
    Rick,
    Side A coverage is still not really selling with most private or non-profits. I think most retail agents don’t really know the true need or benefits of Side A coverage for private and non-profits. Even many of the banks that we have quoted do not purchase Side A.
    I have seen some hospitals starting to buy Side A coverage. The most common reason why some risks are starting to consider this coverage is understanding the bankruptcy protection that Side A can offer.
    I would hope that insureds would begin to see the benefits of the product and we would see more buyers. We have seen a few cases where coverage would have been granted IF an insured purchased Side A coverage.
    Hope this is helpful.
    Thanks Dave; it is.

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