Frequently Asked Questions
How did IAT start?
In the mid 1980's Peter R. Kellogg and Edward A. Kerbs, partners in Spear Leeds & Kellogg, acted on a long held belief that the reinsurance business would be a source of long-term and low cost investment "float" if underwriters' compensation was based on the long-term results of their risk decisions rather than their short-term impact on revenue and earning per share growth. IAT was incorporated and capitalized specifically to implement this strategy during the hard pricing market of the mid-'80s. IAT operated under the licensed authority of the N.Y. Insurance Exchange ("NYIE") and wrote a broad book of non-related property and casualty policies from February, 1986 until December, 1987 when the State of New York withdrew the NYIE's insurance license resulting in IAT suspending all underwriting activity. In June, 1991 IAT was permitted to withdraw from the NYIE and reincorporate its assets and liabilities under the laws of Bermuda where it has since operated in good standing as a Class 3 reinsurer. Insurance market pricing had by 1991 long since deteriorated to the point that IAT was not incented to reinitiate its underwriting activity. It continued to pay its claims while it ran off its liabilities.
Assumed reinsurance business was restarted on January 1, 2002, under the leadership of Jim Miller, who joined after a career with Kemper Reinsurance and GE Reinsurance.
What companies comprise the IAT Insurance Group?
See our Organizational Chart
What is IAT Reinsurance's underwriting model?
IAT Reinsurance's genesis is rooted in the dual notions that 1.) reinsurers should write premium when proper risk pricing is evident and 2.) underwriters should be incented to restrain production when such evidence is absent. Key managers and underwriters in the business have direct and specific long-term exposure to the outcome of their risk decisions. This is the keystone of IAT Reinsurance's business strategy; regardless of the program, premium is not written unless the underwriter has personal financial risk attached to that decision.
Where is the traditional reinsurance business written?
Harco National, given it's A.M. Best A- rating and broad licensing, will originate and underwrite most of the traditional assumed reinsurance business. Some of this business may be retroceded to IAT Reinsurance Co., Ltd under circumstances where the latter's capital strength can relieve premium growth pressure.
Business can also be written on IAT Reinsurance Co., Ltd paper where clients may desire to have a more highly capitalized reinsurer with an A.M. Best rating of A-.
Under special circumstances, we also have access to A.M. Best A rated paper.
Why keep IAT private?
IAT Reinsurance's foundational business mandate is that of capital preservation. Protection of capital and surplus at the expense of growth in premium, market share and earnings is paramount. The luxury of adopting this policy is directly derived from its private company status, a commensurate disinterest in courting capital market access and its shareholders' indifference to public and industry visibility for its own sake. IAT Reinsurance believes further that this business policy will engender amongst its clients and prospective clients a long-term and positive image of sustained capacity and financial strength. While its market pricing requirements could make IAT Reinsurance less competitive in a soft market, many clients will want (and some will need) to do business with firms whose capacity is certain in difficult markets where capital available for underwriting may otherwise contract.