Addendum No. 1 to the Net Quota Share Reinsurance Contract
EXHIBIT 10.23
Addendum No. 1
to the
Net Quota Share
Reinsurance Contract
Effective: July 1, 2005
issued to the
VESTA FIRE INSURANCE CORPORATION
SHELBY INSURANCE COMPANY
THE HAWAIIAN INSURANCE AND GUARANTY COMPANY, LTD.
FLORIDA SELECT INSURANCE COMPANY
SHELBY CASUALTY INSURANCE COMPANY
VESTA INSURANCE CORPORATION
and
TEXAS SELECT LLOYDS INSURANCE COMPANY
and
any other insurance companies which are now or
hereafter come under the ownership, control or management of
Vesta Fire Insurance Corporation and agreed to be included in advance by the Reinsurer
It Is Hereby Agreed, effective December 1, 2005, with respect to losses arising out of Loss Occurrences commencing on or after that date, that paragraph A of Article VIII - Retention and Limit - shall be deleted and the following substituted therefor:
| “A. | The Company shall cede to the Reinsurer and the Reinsurer agrees to accept 75.0% of the Company’s Net Liability under Policies in force at the effective date hereof or issued or renewed during the Contract Year. Further, the Company shall cede to the Reinsurer 75.0% of the Net Unearned Premium Reserves at inception of this Agreement and 75.0% of the Net Written Premium on all Policies subject to this Contract.” |
The provisions of this Contract shall remain otherwise unchanged.
Addendum No. 1
to the
Interests and Liabilities Agreement
of
ACE Property & Casualty Insurance Company
Philadelphia, Pennsylvania
by
ACE Tempest Re USA, LLC
Stamford, Connecticut
(hereinafter referred to as the “Subscribing Reinsurer”)
with respect to the
Net Quota Share
Reinsurance Contract
Effective: July 1, 2005
issued to and duly executed by
VESTA FIRE INSURANCE CORPORATION
SHELBY INSURANCE COMPANY
THE HAWAIIAN INSURANCE AND GUARANTY COMPANY, LTD.
FLORIDA SELECT INSURANCE COMPANY
SHELBY CASUALTY INSURANCE COMPANY
VESTA INSURANCE CORPORATION
and
TEXAS SELECT LLOYDS INSURANCE COMPANY
and
any other insurance companies which are now or
hereafter come under the ownership, control or management of
Vesta Fire Insurance Corporation and agreed to be included in advance by the Reinsurer
It Is Hereby Agreed that Addendum No. 1 to the Contract shall form part of the Contract, effective December 1, 2005.
It Is Further Agreed that the Subscribing Reinsurer’s share in the interests and liabilities of the “Reinsurer” under the Contract shall be revised from 25.000% to 16.667%, effective December 1, 2005, with respect to losses arising out of Loss Occurrences commencing on or after that date.
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In Witness Whereof, the parties hereto by their duly authorized representatives have executed this Addendum as of the dates undermentioned at:
Birmingham, Alabama, this 4th day of January in the year 2006.
| Russ Crouch | ||
| Vesta Fire Insurance Corporation (for and on behalf of the Company) |
Stamford Connecticut, this day of in the year .
|
| ||
| ACE Tempest Re USA, LLC (for and on behalf of ACE Property & Casualty Insurance Company) | ||
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Addendum No. 2
to the
Interests and Liabilities Agreement
of
Swiss Reinsurance America Corporation
Armonk, New York
through
Swiss Re Underwriters Agency, Inc.
Calabasas, California
(hereinafter referred to as the “Subscribing Reinsurer”)
with respect to the
Net Quota Share
Reinsurance Contract
Effective: July 1, 2005
issued to and duly executed by
VESTA FIRE INSURANCE CORPORATION
SHELBY INSURANCE COMPANY
THE HAWAIIAN INSURANCE AND GUARANTY COMPANY, LTD.
FLORIDA SELECT INSURANCE COMPANY
SHELBY CASUALTY INSURANCE COMPANY
VESTA INSURANCE CORPORATION
and
TEXAS SELECT LLOYDS INSURANCE COMPANY
and
any other insurance companies which are now or
hereafter come under the ownership, control or management of
Vesta Fire Insurance Corporation and agreed to be included in advance by the Reinsurer
It Is Hereby Agreed that Addendum No. 1 to the Contract shall form part of the Contract, effective December 1, 2005.
It Is Further Agreed that the Subscribing Reinsurer’s share in the interests and liabilities of the “Reinsurer” under the Contract shall be revised from 75.0% to 50.0%, effective December 1, 2005, with respect to losses arising out of Loss Occurrences commencing on or after that date.
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In Witness Whereof, the parties hereto by their duly authorized representatives have executed this Addendum as of the dates undermentioned at:
Birmingham, Alabama, this 4th day of January in the year 2006.
| Russ Crouch | ||
| Vesta Fire Insurance Corporation (for and on behalf of the Company) |
Calabasas, California, this day of in the year .
|
| ||
| Swiss Re Underwriters Agency, Inc. (for Swiss Reinsurance America Corporation) | ||
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Interests and Liabilities Agreement
entered into by and between
VESTA FIRE INSURANCE CORPORATION
SHELBY INSURANCE COMPANY
THE HAWAIIAN INSURANCE AND GUARANTY COMPANY, LTD.
FLORIDA SELECT INSURANCE COMPANY
SHELBY CASUALTY INSURANCE COMPANY
VESTA INSURANCE CORPORATION
and
TEXAS SELECT LLOYDS INSURANCE COMPANY
and
any other insurance companies which are now or
hereafter come under the ownership, control or management of
Vesta Fire Insurance Corporation and agreed to be included in advance by the Reinsurer
and
E+S Reinsurance (Ireland) Limited
Dublin, Ireland
(hereinafter referred to as the “Subscribing Reinsurer”)
It Is Hereby Agreed that the Subscribing Reinsurer shall have a 6.666% share in the interests and liabilities of the “Reinsurer” as set forth in the attached Contract entitled:
Net Quota Share
Reinsurance Contract
Effective: July 1, 2005
(as amended by Addendum No. 1)
It Is Further Agreed that this Agreement shall become effective on December 1, 2005, with respect to losses arising out of Loss Occurrences commencing on or after that date, and shall continue in force until June 30, 2006, both days inclusive, unless earlier terminated in accordance with the provisions of the attached Contract.
It Is Also Agreed that the Subscribing Reinsurer’s share in the attached Contract shall be separate and apart from the shares of the other reinsurers, and shall not be joint with the shares of the other reinsurers, it being understood that the Subscribing Reinsurer shall in no event participate in the interests and liabilities of the other reinsurers.
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It Is Also Agreed that as respects the Subscribing Reinsurer’s percentage share(s) in the attached Contract, the following shall apply:
| 1. | In lieu of the provisions of paragraph A of Article I - Definitions - the following paragraph shall apply: |
| “A. | ‘Contract Year’ as used herein shall mean the period from December 1, 2005 through June 30, 2006, both days inclusive. If this Contract is terminated prior to June 30, 2006, the Contract Year shall be from December 1, 2005 through the date of termination.” |
| 2. | In lieu of the provisions of paragraph A of Article XII - Reports and Remittances - the following paragraph shall apply: |
| “A. | On December 20, 2005, the Company shall report to the Reinsurer the ceded unearned premium (net of inuring reinsurance as set forth in Article VI) with respect to business in force on December 1, 2005. The Company shall remit payment of this amount, less Ceding Commission, by January 3, 2006.” |
| 3. | In lieu of the Schedule A attached to and forming part of the attached Contract, the Schedule A attached to and forming part of this Agreement shall apply. |
In Witness Whereof, the parties hereto by their respective duly authorized representatives have executed this Agreement as of the dates undermentioned at:
Birmingham, Alabama, this 4th day of January in the year 2006.
| Russ Crouch | ||
| Vesta Fire Insurance Corporation (for and on behalf of the Company) |
Dublin, Ireland, this day of in the year .
|
| ||
| E+S Reinsurance (Ireland) Limited |
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Interests and Liabilities Agreement
entered into by and between
VESTA FIRE INSURANCE CORPORATION
SHELBY INSURANCE COMPANY
THE HAWAIIAN INSURANCE AND GUARANTY COMPANY, LTD.
FLORIDA SELECT INSURANCE COMPANY
SHELBY CASUALTY INSURANCE COMPANY
VESTA INSURANCE CORPORATION
and
TEXAS SELECT LLOYDS INSURANCE COMPANY
and
any other insurance companies which are now or
hereafter come under the ownership, control or management of
Vesta Fire Insurance Corporation and agreed to be included in advance by the Reinsurer
and
Hannover Reinsurance (Ireland) Ltd.
Dublin, Ireland
(hereinafter referred to as the “Subscribing Reinsurer”)
It Is Hereby Agreed that the Subscribing Reinsurer shall have a 26.667% share in the interests and liabilities of the “Reinsurer” as set forth in the attached Contract entitled:
Net Quota Share
Reinsurance Contract
Effective: July 1, 2005
It Is Further Agreed that this Agreement shall become effective on December 1, 2005, with respect to losses arising out of Loss Occurrences commencing on or after that date, and shall continue in force until June 30, 2006, both days inclusive, unless earlier terminated in accordance with the provisions of the attached Contract.
It Is Also Agreed that the Subscribing Reinsurer’s share in the attached Contract shall be separate and apart from the shares of the other reinsurers, and shall not be joint with the shares of the other reinsurers, it being understood that the Subscribing Reinsurer shall in no event participate in the interests and liabilities of the other reinsurers.
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It Is Also Agreed that as respects the Subscribing Reinsurer’s percentage share(s) in the attached Contract, the following shall apply:
| 1. | In lieu of the provisions of paragraph A of Article I - Definitions - the following paragraph shall apply: |
| “A. | ‘Contract Year’ as used herein shall mean the period from December 1, 2005 through June 30, 2006, both days inclusive. If this Contract is terminated prior to June 30, 2006, the Contract Year shall be from December 1, 2005 through the date of termination.” |
| 2. | In lieu of the provisions of paragraph A of Article XII - Reports and Remittances - the following paragraph shall apply: |
| “A. | On December 20, 2005, the Company shall report to the Reinsurer the ceded unearned premium (net of inuring reinsurance as set forth in Article VI) with respect to business in force on December 1, 2005. The Company shall remit payment of this amount, less Ceding Commission, by January 3, 2006.” |
| 3. | In lieu of the Schedule A attached to and forming part of the attached Contract, the Schedule A attached to and forming part of this Agreement shall apply. |
In Witness Whereof, the parties hereto by their respective duly authorized representatives have executed this Agreement as of the dates undermentioned at:
Birmingham, Alabama, this 4th day of January in the year 2006.
| Russ Crouch | ||
| Vesta Fire Insurance Corporation (for and on behalf of the Company) |
Dublin, Ireland, this day of in the year .
|
| ||
| Hannover Reinsurance (Ireland) Ltd. |
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Schedule A
(Revised: December 1, 2005)
Monthly Reporting Requirements
Cumulative Amounts evaluated as of XX/XX/XX
| California | Texas | Other States | TOTAL | |||||||||||||
| Gross | Ceded | Gross | Ceded | Gross | Ceded | Gross | Ceded | |||||||||
| Premium | ||||||||||||||||
| Unearned at 12/1/05 | ||||||||||||||||
| Written Beginning 12/1/05 | ||||||||||||||||
| Earned during treaty term | ||||||||||||||||
| Ceding Commission | ||||||||||||||||
| Paid | ||||||||||||||||
| Expected Final | ||||||||||||||||
| Loss & ALAE | ||||||||||||||||
| Paid Loss | ||||||||||||||||
| Paid ALAE | ||||||||||||||||
| Outstanding Loss & ALAE | ||||||||||||||||
| IBNR Loss & ALAE | ||||||||||||||||
| Mold Loss & ALAE | ||||||||||||||||
| Shock Loss & ALAE | ||||||||||||||||
| Schedule A (Revised) | |
(Revised: December 1, 2005)
Net Quota Share
Reinsurance Contract
Effective: July 1, 2005
issued to
VESTA FIRE INSURANCE CORPORATION
SHELBY INSURANCE COMPANY
THE HAWAIIAN INSURANCE AND GUARANTY COMPANY, LTD.
FLORIDA SELECT INSURANCE COMPANY
SHELBY CASUALTY INSURANCE COMPANY
VESTA INSURANCE CORPORATION
and
TEXAS SELECT LLOYDS INSURANCE COMPANY
and
any other insurance companies which are now or
hereafter come under the ownership, control or management of
Vesta Fire Insurance Corporation and agreed to be included in advance by the Reinsurer
| Reinsurers | Participations | ||
| ACE Tempest Re USA, LLC (for ACE Property & Casualty Insurance Company) | 16.667 | % | |
| E+S Reinsurance (Ireland) Ltd. | 6.666 | ||
| Hannover Reinsurance (Ireland) Ltd. | 26.667 | ||
| Swiss Re Underwriters Agency, Inc. (for Swiss Reinsurance America Corporation) | 50.000 | ||
| Total | 100.000 | % | |
