Arden gets SiriusPoint capacity for new wildfire coverage

By Chris Munro

Aug 13 - (The Insurer) - Arden Insurance Services has secured capacity support from SiriusPoint for its new consolidated fire insurance policy (CFIP), which the MGU’s CEO Brian Cohen said “provides comprehensive coverage” to an “underserved market”.

Through the tie-up, AM Best A-minus-rated SiriusPoint will provide capacity for the new program, which also incorporates embedded parametric coverage.

The announcement came after The Insurer earlier on Tuesday revealed that Arden had launched a commercial property program that combines indemnity insurance for non-wildfire claims with embedded parametric protection supported by Munich Re and Everest for wildfire risk.

The identity of the carrier providing capacity for the non-wildfire element of the program, which is written on an E&S basis supported by a panel of reinsurers, was not previously known.

However, Arden and SiriusPoint have now confirmed that the Scott Egan-led (re)insurer is providing capacity for the traditional indemnity aspect of the program.

The new program, which provides coverage alongside Arden’s existing all-risks protection, will initially be offered in California with plans to expand into other wildfire-exposed states over time.

“The recent LA wildfires further exacerbated the insurability crisis for properties located in wildfire-exposed areas, and CFIP provides comprehensive coverage for this underserved market,” said Cohen.

“Our broker partners in California and other parts of the Western U.S. have been asking for a solution that would provide peace of mind in a distressed market. We are excited to partner with SiriusPoint to deliver for the industry,” Cohen added.

The new coverage adds to Arden’s existing portfolio, which currently comprises solutions for multifamily habitation risks – an area of the market where many carriers have pulled back their support and where many of those that remain have severely sub-limited coverage for wildfire risk.

Arden’s in-force book stands at more than 120,000 buildings insured.

“We’re proud to become a capacity partner to Arden, working together to meet critical market needs with a program that is both creative and impactful,” said Patrick Charles, head of North America insurance at SiriusPoint.

“Arden’s thoughtful program strategy, backed by a decade of proven success in this class of business, is filling a vital gap in an underserved segment. This partnership not only supports the insurance ecosystem but also contributes to the broader economic resilience of California,” Charles added.

Augment Risk, a reinsurance broker launched in 2023 and led by CEO Andrew Matson, facilitated the capacity deal between SiriusPoint and Arden.

And in a statement, Matson said Arden’s new CFIP “offers an efficient, streamlined approach to wildfire insurance”.

“The solution highlights how innovative capital structuring can accelerate the delivery of new risk transfer solutions,” he said.

“Augment Risk’s parametric and MGA teams worked alongside Arden and SiriusPoint to structure the capital framework supporting this program, and we are grateful to them for their trust throughout the process,” Matson added.

Arden, which is based in Glendale, California, was launched in 2016. The tech-enabled MGU’s core program is focused on condo associations, providing property limits of up to $250 million, as well as general liability and crime and fidelity coverages.

Alongside its newly inked SiriusPoint, Everest and Munich Re partnerships, Arden has capacity tie-ups with Amerisure, Accelerant and TruStage.