American Global Insurance's Historic Agreement with Lloyd’s of London Syndicates

The American Global Insurance and Reinsurance Group has entered into a quota share reinsurance agreement with two Lloyd’s of London syndicates. This partnership, recognized by the Modoc Nation's insurance commissioner, marks a significant milestone as it positions American Global Insurance, Inc. (AGII) as the first tribally licensed carrier to achieve such an agreement within the Lloyd’s arena.

AGII, the principal insurer in the group, operates under the laws of the Modoc Nation, a federally recognized tribal authority in Oklahoma. This insurer is licensed by the Modoc Nation's Department of Insurance. The agreement, effective January 1, 2026, grants the Lloyd’s syndicates a 50% share of premiums and losses associated with AGII’s medical health indemnity liabilities.

The American Global Group functions through various entities that include insurance, reinsurance, and service companies, many of which operate under tribal jurisdictions. The Modoc Insurance Department, since its inception in 2018, has become a hub for over 700 direct write and reinsurance firms, distinguishing itself as an alternative to state-managed captive domiciles and offshore venues.

Federally recognized tribes, such as the Modoc Nation, have the authority to establish independent regulatory systems distinct from the states encompassing their territories. Mark Weitz, a legal expert and founder of Weitz Morgan PLLC, functions as the insurance commissioner for the Modoc Nation. Although the tribal regulatory model has faced scrutiny, particularly from the Internal Revenue Service concerning micro-captive structures, tribal officials have defended their regulatory practices against perceived industry biases.

AGII specializes in providing supplemental wellness and fully funded health care indemnity programs tailored to small and medium-sized businesses. These offerings are structured to adhere to the Employee Retirement Income Security Act of 1974 (ERISA) and the Internal Revenue Code, providing them an exemption from state and local oversight.

Additionally, AGII is developing health plans designed as alternatives to products offered under the Affordable Care Act (ACA). These alternatives, expected to be introduced in select markets, claim compliance with ACA requirements and often incorporate Health Savings Accounts. In the industry, "ACA alternatives" usually refer to off-exchange private plans that meet ACA’s essential health benefits without being eligible for cost-sharing assistance.

This agreement aligns with Lloyd’s ongoing efforts to attract new capital, as highlighted in its latest annual report. This report indicates that returning capital and reduced catastrophic events could impact pricing strategies in 2026. Lloyd’s has handled over 50 serious underwriting inquiries with several new syndicates scheduled to commence operations in the upcoming year.

The Modoc Nation's commissioner stated that the collaboration with Lloyd’s leverages the stability and support of a globally respected insurance and reinsurance organization, allowing American Global Group to innovate in offering affordable, quality healthcare options to US employers.