Corporate round-up European Risk Insurance Management News Commercial Risk Europe

Monday, 3 October 2011

Corporate round-up

RSA creates Global Specialty division, XL obtain prior approval for Brazil operation, Ecclesiastical set to call halt on NZ quake cover, FM Global's ratings affirmed by Fitch and First candidates chosen for new Lloyd's initiative.

Lloyd's

RSA creates Global Specialty division

RSA has announced that it will combine its large, risk managed and specialist businesses across the world to create a new Global Specialty Lines (GSL) division.

Led by Paul Donaldson, Group Sales and Broker Relationships Director, the GSL division will comprise four of RSA’s specialist departments–Risk Solutions, Construction and Engineering, Marine and Renewable Energy.

RSA currently writes over £1bn of premium across these businesses.

“There are only a small number of insurers who can write risk solutions and specialty business across the globe, and we intend to be the very best of them. Our customers are varied and different, and they need the support that a globally coordinated programme can provide them,” said Mr Donaldson.

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“It’s therefore imperative that we harness all our skills and offerings across the Group to enable us to meet the needs of our current and potential global customers,” he added.

XL obtain prior approval for Brazil operation

XL Group has announced that is has obtained prior approval to establish an insurance operation in Brazil. The new unit will offer a range of casualty, property, professional and specialty insurance products.

Upon receipt of final regulatory approval from Superintendencia de Seguros Privados (SUSEP), the Brazilian insurance and reinsurance regulator, the company will open XL Seguros Brasil S.A in Sao Paulo.

The insurance operation will expand XL’s capabilities in the country, where its Reinsurance segment has operated for over a decade.

“The Brazilian contribution to the global economy continues to grow and will only become more central to our clients’ goals. We look forward to expanding our offerings in the country and helping the development of the local and regional marketplace,” said XL’s Chief Executive Officer, Mike McGavick.

Ecclesiastical set to call halt on NZ quake cover

Ecclesiastical will cease writing earthquake cover in New Zealand following big losses as a result of the series of earthquakes that struck the country earlier this year.

“The New Zealand earthquakes have produced the Group’s biggest ever series of losses. Although we are well protected by our reinsurance programmes, we have nevertheless experienced gross claims, across the three main events, of over £330m,” said the group’s Chief Executive Michael Tripp.

As such the insurer has decided to cease writing new business from its Ansvar subsidiary in New Zealand.

It will instead offer new business and renewals through its Australian operation, also trading as Ansvar, but will exclude earthquake cover for New Zealand risks.

“This has been done to protect the long-term stability of the Ecclesiastical Group, where our operations in the UK, Ireland and Canada are unaffected by this announcement. In Australia, our existing customers will be offered earthquake cover everywhere this proves to be affordable,” said Mr Tripp.

Mr Tripp acknowledged that is a difficult time for everyone in New Zealand and said his company is committed to helping customers recover from the disasters.

Ecclesiastical is looking at ways to provide earthquake cover for New Zeland in the future, either by offering earthquake cover as a standalone product or potentially as part of a broader cover through an underwriting agency.

FM Global's ratings affirmed by Fitch

Fitch Ratings has affirmed the ‘AA’ (Very Strong) financial strength rating of FM Global and its stable rating outlook, partly in recognition of the commercial property insurer’s favourable underwriting performance and loss prevention engineering expertise.

“The ratings continue to reflect FM Global’s strong capital and long-term underwriting profitability, competitive advantages derived from the company’s engineering expertise and benefits drawn from the company’s mutual company status,” said Fitch.

The rating agency also acknowledged the strength of FM Global’s long-term operating performance and capital position, adding that the company’s surplus has been able to withstand large catastrophe losses this year.

“FM Global’s favourable underwriting performance is due in large part to the company’s ability to incorporate its engineering expertise into its risk selection and underwriting processes,” said Fitch.

First candidates chosen for new Lloyd's initiative

The first 19 candidates selected for Ferma’s Young Professional Development Initiative will be announced this evening at the Lloyd’s cocktail reception during the Ferma Forum. Candidates from 11 countries were to be selected. The programme is sponsored by Lloyd’s. It will start on 19th and 20th April in London next year and continue with two day sessions in October 2012 and April 2013.

The Ferma/Lloyd’s Professional Development Programme for risk managers comprises topics such as accessing Lloyd’s and the London insurance market, risk management, exposure management, performance management and emerging risks.

It also includes claims management, international regulation and will provide practical experience of a Lloyd’s underwriting box and the chance to shadow a Lloyd’s broker.

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