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WoodStar Reciprocal Exchange launches with $220M in surplus notes
The new reciprocal insurer received an AM Best A- financial strength rating and is set to feed underwriting capacity to MGA specialty programs via Accelerant’s risk exchange.
WoodStar Reciprocal Exchange has been launched to provide dedicated underwriting capacity through the Accelerant Risk Exchange, backed by third-party capital from KKR-backed Kilter Finance and funds managed by Blue Owl Capital, Artemis reports.
AM Best has assigned WoodStar Reciprocal Exchange an ‘A-‘ financial strength rating, and the insurer’s $220 million of 9.5% fixed surplus notes due 2041 were rated ‘bbb’. The reciprocal insurer is described as being funded with more than $220 million in surplus notes and capital.
The reciprocal insurer will be managed by an Accelerant majority-owned attorney in fact, with unrelated minority investor support. Accelerant will not hold ownership in WoodStar, but it will provide underwriting, distribution, claims, and other services for the new vehicle.
WoodStar is designed to channel additional underwriting capacity to managing general agent, or MGA, programs that work through the Accelerant Risk Exchange, with opportunities vetted and monitored by Accelerant. Artemis notes the firm expects the capacity to be offered to a select group of MGAs sourcing specialty insurance opportunities.