Reinsurance
Reinsurance for LGPIF
Wisconsin Office of the Commissioner of Insurance (OCI) (ceding company) is purchasing reinsurance through Willis Re (broker) since 2003 from multiple insurance/ reinsurance companies (reinsurer) for the LGPIF Fund. The reinsurance contracts for the Fund are signed annually in March; therefore, the reinsurer, the covering areas, and the coverage amount may differ from year to year.
Premiums and Coverage
The insured value of LGPIF is covered by multiple companies and layers. In 2014/15 policy, LGPIF is paying $9.6 million a year and has a $800 million coverage. Also, it is covered by 5 layers and a stand-alone terrorism coverage for Lambeau Field, as shown in the graph below. The policy starts with a lead layer of $100 million limit from Lexington. The second layer is built on top of the lead layer covering $320 million excess of $100 million. Where the $100 million has been covered by Lexington in the lead layer. The following layers would continue to be built on top of the previous layer. LGPIF is covered by a total of 8 insurance/reinsurance companies and a total limit of $800 million.
Multiple companies could share the same quota share layer. For example, RSUI, Starr Specialty, Westport, and Ironshore share the $320 million excess of $100 million layer. Each of the company would cover a fixed percentage of layer, where the specified quota share percentages are indicated on the contracts.
Related Organizations
Willis Re, with headquarters located in London, is one of the world's leading reinsurance companies.
Lexington Insurance Company
Member of the American International Group (AIG). Leading US. based surplus lines insurer. Covers property, casualty, specialty coverage, and program insurance.
Ironshore, founded in 2006, is one of the fastest growing companies in the industry. It provides health, environment, energy, construction, property, casualty and professional liability coverage.
Westport Insurance Corporation
Westport is a wholly owned subsidiary of Swiss Re Ltd. It was acquired in 2006 and changed its name from Employers Reinsurance Corporation to Westport Insurance Corporation in 2008.
Starr Specialty is a global insurance and investment company that covers aviation, marine, energy and excess casualty insurance.
RSUI is a leading underwriter of wholesale specialty insurance that provides property, casualty, professional liability and directors and officers liability coverage.
Federal Insurance Co.
Property and Casualty insurance subsidiary of Chubb Group of Insurance Companies
Lloyd's is an insurance market, not a company, formed of 56 managing agents and 91 syndicates. More than one syndicate may share the same insuring risk.
Travelers is one of the United States' largest property and casualty companies.