5 New Insurance Companies OK’d to Do Business in Arkansas

Arkansas Insurance Commissioner Allen Kerr has approved five new insurance companies to operate in the state, bringing to 103 the number of new insurance companies approved since January 2015, according to the Arkansas Insurance Department.

The AID says that since early 2015, total premium volume in Arkansas has increase by $2.93 billion to $15.2 billion while individual licensure of producers and adjusters has increased 59% to 138,970.

The newly approved insurance companies include:

• Hartford Insurance Co. of the Southeast (HICSE) has been approved to sell property, casualty (including workers’ compensation), surety and marine products in Arkansas. HICSE was formed as a stock insurer in December 1979 in Hartford, Connecticut, and is a wholly owned subsidiary of Hartford Fire Ins Co, which is 100% owned by Hartford Financial Services Group (NYSE: HIG). The Hartford Financial Services Group held total assets of $62.3 billion and stockholder equity of $13.1 billion at the end of 2018. HICSE participates in the Hartford Insurance Group Reinsurance and Pooling agreement. The pool offers personal and commercial insurance through 14 affiliated U.S. property and casualty insurers. HICSE is currently licensed in 15 states and holds an A.M. Best Rating of A- (excellent)(pooled).
• Digital Advantage Insurance Company (DAIC) also has been granted property, casualty (excluding workers’ compensation), surety and marine authority in Arkansas. DAIC is domiciled in Warwick, Rhode Island, and has administrative offices in Burlington, Vermont. DAIC was acquired in 2018 by MR Digital Partners US Holding Corp. (MRDP US HC), which is a wholly-owned subsidiary of Munich American Holding Corp., which is 100% owned by Munchener Ruckversicherungs-Gesellschaft Aktiengesellschaft. DAIC is currently licensed in 24 states and has 14 affiliates already licensed and operating in Arkansas. The primary US subsidiaries in the reinsurance group are Munich Re America (A.M. Best rated A+), Hartford Steam Boiler (A.M. Best rated A++) and the American Modern Insurance Group (A.M. Best rated A+).
• Arch Property Casualty Insurance Co. (Arch PC) has also been granted authority to sell property, casualty (including workers’ compensation), surety, marine and accident and health products in Arkansas. Arch PC is a subsidiary of Arch Insurance Co., a wholly owned subsidiary of Arch Reinsurance Co.y, which is 100% owned by Arch Capital Group Limited, a publicly traded company on the NASDAQ. Arch PC was formerly licensed in Missouri as a domestic surplus lines insurer, Arch Excess & Surplus Insurance Co. (AESI). In 2019, the Missouri Department of Insurance approved a conversion of AESI to Arch PC, a property and casualty insurance company. Arch PC currently has 10 Arch group affiliates licensed and operating in Arkansas. Arch PC maintains an A.M. Best Rating of A+ (superior) and Standard & Poor’s A+ group rating.
• Kerr also granted authority to Next Insurance US Co. (Next-US) to sell property, casualty (excluding workers’ compensation), surety and marine authority in Arkansas. Originally formed in Delaware in 2017 as a property and casualty carrier, Next-US began operating in 2018 and intends to specialize in the small commercial lines marketplace while utilizing an online platform to reduce transaction time and making insurance more affordable. Next-US is a wholly owned subsidiary of Next INS Holdings Inc., which is 100% owned by Next Insurance Inc. (NII), a managing general agency. Munich Re, through an affiliate, holds 6.3% ownership in NII. Next-US is currently licensed to conduct business in 17 states, and writes business through an affiliate, Next First Insurance Agency Inc.
• Finally, Kerr granted Rock Ridge Insurance Co. (RRIC) the authority to sell property, casualty (including workers’ compensation), surety, marine and accident and health products in Arkansas. RRIC, an Indiana domestic property and casualty insurance company, was acquired in July 2018 as a wholly owned subsidiary of Clear Blue Specialty Ins. Co., which is owned by Clear Blue Financial Holdings LLC. The Clear Blue Insurance Group (CBIG) is a property and casualty group providing insurance programs in partnership with managing general agencies, program administrators and reinsurers to produce commercial and personal lines coverages nationwide. CBIG consists of three property and casualty insurance companies, two of which are assigned A.M. Best Ratings of A – (Excellent): Clear Blue Insurance Co. and Clear Blue Specialty Insurance Co. Through RRIC, the Clear Blue Insurance Group will be able to offer differentiated products, as well as tiered and alternative coverages in different markets nationwide.

Source: Arkansas Insurance Department

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