AmRisc LLC, a subsidiary of CRC Group, has announced the launch of Calais Reciprocal Insurance Exchange, designed to expand capacity for coastal commercial excess and surplus (E&S) property insurance.
The exchange has received a financial strength rating of A- (Excellent) from AM Best. AmRisc will serve as the exclusive managing general agency (MGA) for Calais, overseeing underwriting and distribution. Calais has been capitalized with $100 million and is domiciled in Illinois.
It will focus on providing coverage for commercial E&S property risks, particularly in regions facing dislocation due to limited market capacity and rising demand. It will also offer coverage for California Difference in Conditions insurance.
According to AmRisc, Calais is intended to help stabilize the coastal insurance market, which continues to face volatility driven by increasing weather-related losses, reduced reinsurer appetite and regulatory challenges in certain states.
The creation of Calais also aligns with a broader industry trend in which managing general agents and program administrators are forming or partnering with risk-bearing entities to support capacity-constrained markets.
The $100 million in funding for Calais was provided by a group of institutional investors led by Stone Point Capital and Clayton, Dubilier & Rice (CD&R), along with other financial and strategic backers. These investors are expected to contribute oversight and financial support as Calais grows its portfolio.
“We are pleased to announce the formation of Calais Reciprocal Insurance Exchange, which, alongside our existing high-quality carrier partners, will further allow us to serve the coastal commercial E&S property market that we have supported for more than 25 years,” said Brian Reid, CEO of AmRisc.
“With the establishment of Calais, AmRisc is introducing a fresh source of capacity to the market for brokers while ensuring greater long-term stability for policyholders,” said Laura Beckmann, president and COO of AmRisc.
Howden Capital Markets & Advisory acted as the exclusive financial advisor to AmRisc. Legal and regulatory counsel for the transaction was provided by Willkie Farr & Gallagher LLP.
