Company Information
MERICAN CONTRACTORS INSURANCE GROUP LTD. (together with its subsidiaries, referred to as the “Company”) writes insurance policies and provides related services to the construction industry. The policies cover workers compensation, general liability and automobile liability exposures. The services include underwriting, supervision of claims, policy filings and issuance, loss control and engineering services and brokerage placements.
The business was commenced in 1981 under the name of “American Risk Transfer Insurance Co. Ltd.” It was formed by a select group of larger U.S. contractors with the following mission:
To save lives, prevent injuries and reduce the overall cost of insurance for our shareholders by (1) effectively reducing losses, (2) providing a stable market with quality services, (3) utilizing our group purchasing power and (4) creating equity
The Company is a Bermuda corporation and initially was organized to write reinsurance coverages for its contractors/shareholders. At the time, the U.S. tax laws provided favorable tax treatment for such offshore reinsurance companies. However in 1986, Congress changed the tax laws to eliminate many of these tax advantages.
Thereafter, the Company gradually transformed the nature of its business from reinsurance to direct insurance. Today, it issues all of its general liability and its automobile liability primary policies. Its workers compensation company (currently licensed in 49 states as well as the District of Columbia) writes most of the workers compensation coverages that it issues. This transformation from a reinsurance carrier to a direct insurance company is largely complete because the workers compensation company is licensed in all states, except New Hampshire. The company does not anticipate being licensed in New Hampshire in the foreseeable future.
Currently, all the Company’s policies are written for, and all services are provided to, the Company’s shareholders (and related parties). These shareholders are provided financial incentives to place profitable insurance business with the Company through a unique method of computing each shareholder's equity. The Company also offers to place umbrella and excess coverage for those shareholders desiring to purchase such coverages.
ACIG has developed a very broad and comprehensive group pollution/professional liability program utilizing American Contractors Risk Purchasing Group. This program provides balance sheet protection via limits of $50,000,000 each claim, $100,000,000 shared group aggregate for the participating members.
The following exhibit details the underwriters and policy limits.
ACIG has developed a strategic alliance with Zurich Construction to jointly provide Contractor Controlled Insurance Programs (CCIPs) on both a blanket and project specific basis. Under this arrangement, ACIG underwrites the workers compensation and primary general liability with Zurich providing the umbrella/excess liability limits up to $15MM. Above this limit, Starr Excess provides $60MM xs $15MM.
This program utilizes a pre-underwritten, project specific developed premium with broad coverages insuring the project owner, ACIG contractor and enrolled subcontractors. To date, we have insured 197 projects, totaling over $4.2BB in construction values.
More detailed information on the AZ Program is available upon request.
The Company is rated “A” (Excellent) by A.M. Best Company. It has a Financial Size Category of “VIII” ($100-$250 million of policyholders’ surplus).