NextEra’s Palms seeks UW director as AM Best endorses third-party business strategy

NextEra Energy’s Palms Insurance Company is looking to recruit an E&S-focused director of underwriting to add to the growing management team of its third-party business after the recent hires of former Aspen executives Tim Kania, Daniel Murphy and Robert Rokicki.

Palms has been officially authorised to write third-party business since the start of 2021 and has been in the process of building out its team and capabilities since then.

This publication revealed in March that NextEra had been developing a surplus lines insurance operation to write third-party business.

To do so, NextEra has repurposed its captive Palms so that the platform not only underwrites coverage for the US utility giant, but also that of non-affiliated entities.

As The Insurer reported in March, NextEra has already hired former Aspen executives Kania and Murphy as director of underwriting and underwriting manager respectively to support this expansion.

This publication has since learned that Rokicki, another Aspen alumnus, has joined NextEra as director of insurance operations. Rokicki had been head of energy and construction for the Americas at Aspen.

Palms began offering coverage to third parties in January, and NextEra has been recruiting to fill the ranks of its insurance business as it looks to broaden its offering. The recruitment drive is continuing, with Juno Beach, Florida-headquartered NextEra currently looking to hire a director of underwriting who has experience of E&S underwriting, among other roles.

AM Best affirms Palms’ ratings

Cayman Islands-domiciled Palms has a financial strength rating of A (Excellent) and long-term issuer credit rating of “a” (Excellent).

AM Best said those ratings reflect the platform’s “strongest” balance sheet strength, as well as its “adequate operating performance, neutral business profile and appropriate enterprise risk management”.

On its move into writing third-party business, AM Best said Palms “has expanded and enhanced its underwriting structure with necessary talent and expertise to support the expansion”.

The bulk of Palms’ business is currently derived from parent NextEra, offering direct and assumed property, casualty coverages, workers’ compensation, automobile liability and employers’ liability coverage.

As AM Best noted, Palms currently provides coverage primarily for the energy and utility industry. It has high net loss potential stemming from a single, severe occurrence relative to its surplus.

This is somewhat mitigated though by its “excellent loss history”, as well as a favourable geographic spread of risk and the platform’s historically strong surplus position.