AMERICAN CONTRACTORS INSURANCE GROUP LTD. (together with its subsidiaries, referred to as the “ACIG”) writes insurance policies and provides related services to the construction industry. The policies cover workers compensation, general liability, automobile liability, subcontractor/supplier default exposures and CCIPs. The services include underwriting, supervision of claims, policy filings and issuance, safety and quality control, risk management services.
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 risk for our members by (1) effectively reducing losses, (2) providing a stable market with quality services, (3) utilizing our group purchasing power and (4) creating equity.
ACIG is a Bermuda corporation initially organized to write reinsurance coverages for its Members. 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, ACIG gradually transformed the nature of its business from reinsurance to direct insurance. Today, it issues all of its liability and indemnity primary policies. Its workers compensation company (currently licensed in 49 states as well as the District of Columbia) writes substantially all 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. ACIG does not anticipate being licensed in New Hampshire in the foreseeable future.
Currently, all ACIG’s policies are written for, and all services are provided to, ACIG’s Members (and related parties). These Members are provided financial incentives to place profitable insurance business with ACIG through an equitable method of computing each member's equity. ACIG also offers to place on a limited basis umbrella, excess and other coverages not written by ACIG for those Members 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, $150,000,000 shared group aggregate for the participating members.
This 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 (along with other insurers) for a total $75MM limit.
This program utilizes a pre-underwritten, project specific developed premium with broad coverages insuring the project owner, ACIG Member and enrolled subcontractors. To date, we have insured 872 projects, totaling over $10.6BB in construction values.
More detailed information on the CCIP Program is available upon request.
ACIG is rated “A” (Excellent) by A.M. Best Company. It has a Financial Size Category of “VIII” ($100-$250 million of policyholders’ surplus) and an outlook of "Stable."
This organizational chart outlines the relationship of the insurance entities.