Ohio-based Technology Insurance seeking approval to offer commercial coverage in Canada

AmTrust Financial Services Inc., which writes more than US$3 billion a year in insurance, is seeking approval from the Canadian government to have its Cleveland, Ohio-based subsidiary, Technology Insurance Company Inc., offer commercial insurance in Canada, with a chief agent based in Toronto.

“We look forward to having a successful business in Canada, comparable to what we’ve been able to achieve in the U.S.,” said Elizabeth Malone, senior vice president for investor relations at New York City-based AmTrust, in an interview with Canadian Underwriter.

Malone added she was “limited” in what she could say about Technology Insurance’s plans for Canada because the firm is still in the process of seeking regulatory approval to start a Canadian branch.

In the Nov. 2 issue of the federal government’s official newspaper, Canada Gazette, it was announced that Technology Insurance “intends to file with the Superintendent of Financial Institutions, on or after Dec. 2, 2013, an application under section 574 of the Insurance Companies Act (Canada) for an order allowing the insuring in Canada of risks.”

Those risks would include property, marine, specialty lines, general liability, products liability and commercial automobile. If approved, the carrier would operate in Canada under the English name Technology Insurance Company Inc. and in French as Societe D’Assurance Technologie. The firm’s Canadian chief agency would be located in Toronto.

In the United States, Technology Insurance sells through brokers and agents, as well as directly, Malone noted.

AmTrust conducts business through 11 subsidiaries, including Technology Insurance, which offers small commercial, specialty risk and extended warranty coverage. AmTrust’s U.S. commercial markets include auto repair shops, grocery stores, distributors, light manufacturing, retail, office and restaurants. Coverages for restaurants in the U.S. include selling price for stock, food-borne contamination and spoilage.

AmTrust reported Nov. 5 its total revenue for the third quarter of 2013 was US$796.5 million, up 58.5% from US$502.5 in the third quarter of 2012. For the nine months ended Sept. 30, 2013, AmTrust reported gross written premiums of US$3.059 billion.

In 2012, the firm reported gross written premiums of US$2.749 billion and net earned premiums of US$1.419 billion.