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Manhattan's largest owner of commercial office
properties, SL Green Realty, has formed an insurance
captive, Belmont Insurance Company, after receiving
licensing from the New York State Insurance
Department.
The captive has been
formed to insure a portion of certain risks of SL
Green under 1997 captive legislation. It is currently
licensed to write up to US$100m (£53.8m) of coverage
for SL Green.
SL Green Realty is a
self-administered and self-managed real estate
investment trust (REIT) that predominantly acquires,
owns, repositions and manages a portfolio of
Manhattan
office properties.
SL Green plans to to
tailor insurance coverage to its specific needs
Through Belmont Insurance Company via underwriting and
retention customisation, direct access to reinsurance
markets for wholesale premium quotes, greater control
over claims and creative incentives for loss control.
“While there is
sufficient capacity in today’s insurance markets to
cover property and general liability, we have formed
this captive as a means of providing our company with
options and flexibility for the future,” said Marc
Holliday, president and chief executive of SL Green.
“Our decision was in response to our continuing
ongoing focus on risk management.”
He added: “After
evaluating various venues, we decided to domicile the
captive in
New York
State.
As a result of the New York State Department's
streamlined registration procedures, we were able to
form the captive quickly and efficiently.”
Howard Mills,
superintendent of insurance of New York State
Insurance Department, stated: “We are pleased that SL
Green chose to locate its insurance captive in
New York
State.
We applaud the decision to take advantage of the
state's legislation permitting business owners to take
a greater degree of control over insuring their
risks.” |
