MGU launches protected cell captive

Xchange Benefits LLC, a managing general underwriter owned by Ambac Financial Group Inc., said Friday it has launched a protected cell captive that will provide medical stop loss coverage for self-funded employers.

Distribution Re is domiciled in Tennessee and will be run by Marlton, New Jersey-based captive manager Captive Planning Associates LLC.

The captive will insure accident and health risks, mainly high-deductible medical stop loss plans, Armonk, New York-based Xchange Benefits said in a statement.

Ambac acquired a majority stake in Xchange in 2020.