Update: Zurich Enters Deal With Patriot National Insurance Agency to Distribute Workers’ Comp in Florida

(This version clarifies the national scope of the arrangement between Zurich Financial Services Group and Patriot National Insurance Agency Group). Zurich Financial Services Group has inked a deal with Patriot National Insurance Agency Group to underwrite workers' compensation insurance through its agency captive network.

Under its agreement with Zurich, Patriot will be a captive program administrator with full underwriting and claims settlement authority for Patriot's Preferred Agency Captives.

For Zurich, the agreement will serve as an opportunity to build relationships with smaller retail agents. "This is a significant opportunity for us," Rod DeMaso, head of captives for Zurich's programs and direct markets business unit, said in a statement. "We are continually looking for ways to further assert ourselves as a captive solutions provider and the agreement with Patriot allows that as well as an opportunity to work with preferred agency captive owners."

Patriot introduced their agency-owned captive platform in 2009 and in two years surpassed $100 million in annual workers' compensation premium, according to figures provided by Zurich. Its preferred agency captives are currently underwritten by Guarantee Insurance Co. and Ullico Casualty Co. Agency captives allow independent insurance agents to gain a share of underwriting profit and investment income from their controlled book of workers' compensation insurance business.

In recent months, Zurich Financial Services Group has been working to develop relationships with other insurers to help distribute its products.

Earlier this month, Prudential Financial Inc. and Zurich Financial Services Group teamed up on a referral program to help U.S. multinational companies offer group insurance benefits and retirement plans to their local, international and expatriate employees.

Prudential Group Insurance, a unit of Prudential Financial, will be able to refer to Zurich American Life Insurance Co. client requests to cover third-country nationals, and in some cases, local nationals and U.S. expatriates. Zurich American can refer to Prudential Group requests to cover large-scale U.S. domestic risks (Best's News Service, Dec. 6, 2011).

Zurich American Insurance Co. currently has a Best's Financial Strength Rating of A+ (Excellent).

(By Jeff Jeffrey, Washington Correspondent: jeff.jeffrey@ambest.com)