Insurance Jottings

Arch expands Irish operations to write EU business post-Brexit

Bermuda-based Arch Capital Group is planning to expand the group’s underwriting operations in Ireland to ensure continuity of its operations across the European Union once the UK leaves the EU.

 

Lloyd’s threatens to close under-performing syndicates

Lloyd’s performance management director Jon Hancock has warned managing agents he will close down consistently loss-making syndicates if they do not turn-around as part of a major escalation in the Corporation’s oversight.

 

Lloyd’s reviews costs after swinging to a £2 billion loss

Lloyd’s will focus on cutting costs and improving its underwriting performance after a series of natural catastrophes pushed the specialist insurance market into a £2 billion (US$2.81 billion) loss, its first in six years.

 

Insurers globally suffered a record US$135 billion in losses from natural catastrophes such as hurricanes in the Caribbean, earthquakes in Mexico and wildfires in California last year.

 

The Lloyd’s market, which has 80 syndicate members, reported a 2017 pre-tax loss of £2 billion (US$2.80 billion) compared with a pre-tax profit of £2.1 billion in 2016. Major claims totalled £4.5 billion.

 

MS Amlin to re-domicile its UK entity to Brussels in Brexit move

Global re/insurer MS Amlin will commence the process of re-domiciling Amlin Insurance from the UK to Belgium following approval from the National bank of Belgium (NBB).

 

The entity is expected to be fully operational from its new base in Brussels from the 1st January 2019.

 

Amlin Insurance is the company’s trading entity for UK and Europe. The board of the NBB granted Amlin Insurance a licence for insurance and reinsurance activities from its Brussels office and associated branches in the EEA.

 

These branches include offices in the Netherlands and France.

 

MS Amlin said this development will have no effect on the day-to-day operations of any of its trading entities, the approval and licensing is a significant milestone for the business as it prepares for Brexit.

 

RSA Receives Approval for Luxembourg Subsidiary for Post-Brexit EU Business

RSA Group has received licence approval for its new insurance subsidiary in Luxembourg from the Commissariat aux Assurances (CAA).

 

RSA Luxembourg is being established in preparation for the United Kingdom’s exit from the European Union to ensure there is no disruption to business with EU-based customers and other business partners.

 

RSA’s European branch business focuses on large commercial clients and employs 250 people across the EU.

 

Richard Turner, who currently oversees the EU business from the UK, will take up the director role for RSAL.

 

RSA said it will transfer existing EU branch business of RSAI PLC to RSA Luxembourg (RSAL) beginning on the 1st January 2019.

 

Ryan Specialty Completes Acquisition of Lodestar Marine of London

Ryan Specialty Group has completed its acquisition of Lodestar Marine Limited of London.

 

Within RSG, Lodestar’s operations are a part of RSG Underwriting Managers, the managing general underwriting division of Ryan Specialty Group.

 

Charles Dymoke and John Hearn have joined RSG as joint managing directors of Lodestar and will continue to lead Lodestar.

 

Lodestar is a provider of marine fixed protection and indemnity (P&I) coverage, one of the few providers to offer limits of liability up to US$1 billion. Led by RSA Insurance Group, in the primary (up to US$500 million), it offers P&I for owners, charterers and operators as well as additional covers for vessels up to 40,000 gross tonnage worldwide.

 

Newline picks Germany for EU insurance hub in Brexit move

London-based specialty insurer Newline Group is launching its post-Brexit European Union insurance hub in Cologne.

 

The company said it has started the application process and is seeking to create an insurance company subsidiary which will be capitalised, licensed and regulated in Germany.

 

Newline Insurance Company previously established a branch office in Cologne in December 2016 to provide its policyholders and brokers with a local underwriting and claims handling team.

 

“Cologne is a natural choice for us, given our existing presence and the support we have from the local market,” said Carl Overy, CEO of Newline Group.

 

“This new platform will enable us to provide seamless and continuous service in the post-Brexit environment.”

 

Manuel Wirtz, Newline’s General Representative for Germany added, “This decision is a testament to our clients and brokers in Germany, Austria and neighbouring countries for placing their business and trust in us.”

 

QBE sets up EU unit in Belgium

Australia-based QBE has been granted a license for a new Belgian subsidiary QBE Europe to enable the company to maintain continued passporting rights across the European Economic Area (EEA) after the UK leaves the EU.

 

QBE Europe will leverage the existing base that the group has in Brussels and ensure a seamless transition of service for QBE’s insurance and reinsurance customers across Europe, according to a statement. QBE Europe will continue to have branches in Bermuda, Denmark, France, Germany, Ireland, Italy, Spain, Sweden and the UK and intends to commence underwriting in the fourth quarter of 2018.

 

“Our priority throughout the Brexit process has been to provide seamless continuity and certainty for our customers and staff, whatever the final terms of the UK’s exit,” said QBE Europe CEO Richard Pryce. “I am delighted that our Brexit programme is on track and that we have reached this important stage in our plan to continue to provide a full-service capability offering to our customers,” he added.

 

Castel opens in Amsterdam for European expansion

Castel Underwriting Agencies, a managing general agent (MGA) formation platform, has opened its first branch office in Amsterdam  to support plans to expand its operations in Europe as the UK leaves the EU.

 

Castel’s European office will provide a platform to develop and launch specialty underwriting cells, as well as support individual underwriters with books of niche business across Europe, the company said.

 

Castel Transact, a division of Castel Specialty, which provides tailored warranty and indemnity and tax risk insurances for European-based organisations, is the first cell to operate from this branch office.

 

The company has registered the new entity with the Dutch Authority for the Financial Markets (AFM).

 

Mark Birrell, CEO of Castel, said: “Opening our Amsterdam branch office is an important milestone in our growth strategy. Building on the success of our MGA formation platform in the UK, we are looking to support niche underwriters operating in Europe to establish their own businesses.

 

“This also enables Castel to focus on the identification and development of European opportunities post Brexit.”