MS Transverse eyes growth following AM Best rating upgrade: President, John Fitzgerald

In an interview with Reinsurance News, John Fitzgerald, President of MS Transverse, said the company’s recent upgrade of its Financial Strength Rating to A+ (Superior) from A (Excellent) by AM Best cements its leadership in the hybrid fronting space and positions it as an attractive partner for top-tier MGAs across the US.

Launched in 2018, MS Transverse Insurance Group is a subsidiary of Mitsui Sumitomo Insurance Group and part of MS&AD Insurance Group Holdings. It serves as a P&C program carrier, partnering with reinsurers and program administrators to provide a broad range of property and casualty products across commercial and personal lines.

Fitzgerald explained, “Our focus from the outset of the firm was to be the best carrier partner that an MGA enterprise could find in this marketplace. That means being able to support multiple lines, multiple classes, admitted and non-admitted business, and finding the best reinsurance partnerships to ensure sustainability.

“There are roughly 30 hybrid fronting companies attempting to do the same thing, and we’ve been fortunate to carve out a leadership position by partnering with what we think are the best MGAs and supporting multiple programs through those large MGA platforms.

“And that’s not our secret sauce—because the marketplace knows we’re doing it—but it’s something that’s extremely important to us: the ability to identify the best MGAs, partner with them, and support the multiple programs that they have.”

Fitzgerald described the A+ rating as “a literal stamp” of the company’s financial strength and credibility.

“It definitely puts us a cut above our competition in the hybrid fronting space from a rating standpoint,” he said.

“Even though, to some extent, this was happening already, it’ll make us a very attractive target for a carrier partnership for any of the best, most sophisticated MGAs in the US marketplace.”

Fitzgerald also outlined opportunities created by the upgrade, particularly in larger-limit casualty or professional liability lines, where policyholders seek out an A+ rating.

He continued, “At the same time, some property markets with investor backing are looking for minimum rating criteria, whether it be an A or an A+, but also a size criteria. So having that larger size category associated with the group will definitely be a benefit to us.”

Looking ahead, Fitzgerald said MS Transverse is looking to broaden its horizons into specialty classes and lines where it has not yet found an MGA partner. The company is also considering broadening its toolkit in terms of infrastructure, potentially expanding the number of carriers it has and the types of business it could support domestically.

In his closing remarks, Fitzgerald noted, “One of the most important things for us has been the ability to attract and retain top talent.”

He highlighted recent key hires, including Pete Chandler as Chief Revenue Officer: “We brought Pete Chandler into the organisation, which was a major win for us. Pete’s been doing a great job getting up to speed, and we’re leveraging his relationships in a pretty powerful way.

“In addition to Pete, Ethan Allen stepping into the role of Chief Program Officer, Matt Jones running business development, and Tanya Korobeinikova taking a leadership role in reinsurance have all been great examples of adding top talent and positioning them to succeed both internally and externally.

“Looking ahead, we’ll continue to hire. I’d say we’re perpetually recruiting—particularly those with knowledge and familiarity with the program space in the US and abroad,” Fitzgerald concluded.

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