Atlas Financial Extends Underwriting Agreement with National Interstate

Atlas Financial Extends Underwriting Agreement with National Interstate

2020-07-13 05:21:20
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Schaumburg, Ill.-based Atlas Financial Holdings Inc. has extended its agreement with National Interstate Insurance Co. (National Interstate) under which Atlas subsidiaries will continue to act as underwriting manager for National and transition new and renewal paratransit business to National paper until at least August 2021 for fleets with seven or fewer vehicles and until November 2020 for accounts with eight or more vehicles.

The agreement was originally announced in June 2019.

National Interstate continues to retain the option to purchase renewal rights on either of these segments at the expiration of the agreement periods. Other previously disclosed material terms of the agreements between the parties remain unchanged.

Management Commentary

In a prepared statement, Atlas President and CEO Scott D. Wollney said the company has been working “very effectively with the National Interstate team during the past year and are extremely pleased to be able to continue offering a paratransit insurance program to our smaller accounts on a go-forward basis.”

The working agreement “is consistent with our emphasis being placed on generating EBITDA at the MGA level while endeavoring to reduce risk and capital requirements related to traditional primary insurance company operations. We will continue to pursue opportunities to leverage this expertise in other areas of specialty commercial auto as a managing agent as well,” he added.

Over the past year, Atlas has continued to grow its MGA operation through partnerships with strategic external insurance and reinsurance partners, the company said.

Gateway Insurance Sale

In June, Atlas sold its Gateway Insurance Co. subsidiary to Buckle, an insurtech startup focused on rideshare insurance, for an undisclosed price.

Buckle’s purchase of Gateway includes its 47 state insurance licenses. Gateway provides auto insurance to the light automobiles market in the U.S. Atlas primarily focuses on U.S. commercial auto insurance, zeroing in on the “light” commercial automobile sector in areas such as taxi cabs, non-emergency para-transit and limousine/livery.

Nasdaq Notices

Atlas has reported that on July 1 it received a delinquency notification letter from the Listing Qualifications Staff of The Nasdaq Stock Market LLC sue to the company’s non-compliance with Nasdaq Listing Rule 5250(c)(1) as a result of the Atlas’ failure to file its Quarterly Report on Form 10-Q for the quarter ended March 31, 2020.

Atlas said it is continuing to work diligently to complete and file the Form 10-K and the Form 10-Q as soon as practicable. However, it said there’s no assurance that it will be able to file the Form 10-K by the July 15, 2020 extension previously granted by the Nasdaq Hearings Panel or that the Panel will grant any further extensions.

Also as previously disclosed, Atlas is currently in violation of additional Nasdaq Listing Rules due to its failure to hold an annual general meeting of shareholders during 2019 and the failure to regain compliance with the minimum bid price requirement.

Source: Atlas Financial Holdings Inc.

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