Amynta Trade Credit Solutions, a newly launched managing general agent (MGA) in the US, has named global reinsurance company Scor as its first carrier partner.
The trade-credit focused MGA was set up by Amynta earlier this year, with Harpreet Mann, former head of credit and surety at QBE North America, brought in to lead the new unit.
Scor will provide insurance capacity for the MGA, which is initially providing non-cancellable cover for shorter-tenor trade and supply chain finance (SCF) transactions involving policyholders – medium to large-sized corporates and banks – in the US.
The firm has the ability to write policies as long as three years and up to a maximum size of US$50mn, though could go higher on a single risk or obligor with approval from Scor, Mann tells GTR.
She says the plan is to expand into new products lines at some point in the future, while the MGA may also look to enter into other markets once established in the US.
“As the platform owner, Amynta is fronting the costs, developing the underwriting platform and recruiting top talent. As a result, carriers can partner with our programme and strong underwriting teams without fronting these expenses. Expenses are eventually recouped through a commission, but it saves considerable time and effort for carriers,” says Mann.
Amynta’s entrance into trade credit comes at a trying time for the market, with two major insurance companies, Zurich and QBE, announcing in late 2021 that they would stop providing such cover in the US.
Mann tells GTR that the MGA model could help grow the US trade credit insurance industry and boost capacity, with such risk mitigation tools having previously struggled to penetrate the market – especially in comparison to Europe.
Since starting in February, Mann has been joined by two former colleagues, Matthew Herzog and Donna Messick, who have respectively been appointed executive vice-president and senior-vice president.
Herzog served as underwriting manager on QBE North America’s trade credit unit, where Messick acted as head of claims. Amynta Trade Credit is expected to make further hires in the coming months, Mann tells GTR.
Amynta is an insurance services company with more than US$3.5bn in managed premiums and operates across three business segments: managing general agencies, warranty cover and specialty risk services.