ICAT and Neon expand partnership to offer extra Bermuda capacity

Two specialist Lloyd’s underwriters, ICAT Syndicate 4242 and Neon, have completed an agreement that will see them offer additional per risk capacity to the Bermuda Property Direct and Facultative (D&F) market.

Under the arrangement Neon can now offer up to $40 million per account on properties underwritten from the Bermuda office and ICAT Syndicate 4242 now delegates authority to Neon to underwrite larger property schedules.

Neon’s Bermuda office, which is led by Chris Fisher and is an approved coverholder for Neon Syndicate 2468, opened in mid-2016 and provides access to both the local and US markets as Neon expands its international footprint.

ICAT Syndicate 4242 said the deal represents the first step in diversifying its portfolio towards short-tail business underwritten outside of ICAT.

This partnership builds on an existing relationship between the businesses in which Neon delegates authority to ICAT to underwrite middle market commercial business in the US as part of a panel of insurers who provide ICAT up to $150 million per risk capacity.

Chris Fisher, chief executive of Neon Bermuda and head of direct and facultative property, said: “The partnership with ICAT Syndicate 4242, which provides us with up to $40m in per-risk catastrophe capacity, will play a key role in supporting our plans to expand our international presence. We are delighted to be the first partner ICAT has selected to underwrite on its behalf and this partnership is truly reflective of the alignment in our approach to high quality underwriting.”

Megan McConnell, Active Underwriter of ICAT Syndicate 4242, said: “Once our sights were set on identifying underwriting opportunities outside of the CAT-exposed small commercial property space, we quickly realised that Neon offered an opportunity to partner with an organisation and underwriter we highly respect. We are excited to work closely with Chris Fisher and his Neon team knowing that, like Syndicate 4242, they value business with high data quality and transparency of risk, while allowing us to capture business we don’t write today.”