Strategic Partnership with China Re

RNS Number : 3355S

Catlin Group Limited

18 November 2011

 



CATLIN, CHINA RE ANNOUNCE
STRATEGIC PARTNERSHIP

LONDON - Catlin Group Limited ('CGL'; London Stock Exchange), the international specialty property/casualty insurer and reinsurer, today announces the formation of a strategic partnership with China Reinsurance (Group) Corporation ('China Re') that will result in the establishment of a special purpose syndicate at Lloyd's of London.

Subject to final approval by Lloyd's, China Re will provide the capital for Syndicate 2088, which will be managed by Catlin Underwriting Agencies Limited ('CUAL'), a Catlin Group subsidiary.  Syndicate 2088, which will begin underwriting with effect from 1 January 2012, will underwrite a whole-account quota-share reinsurance of the Catlin Syndicate (Syndicate 2003).  Since 2007 the Catlin Syndicate - which is also managed by CUAL - has been the largest syndicate in the Lloyd's market based on gross premiums written.

The formation of Syndicate 2088 marks the first time that a company based in China has directly invested in a syndicate at Lloyd's.  

Syndicate 2088 will have a stamp capacity of approximately £50 million for 2012.

China Re's participation in Syndicate 2088 will allow it to diversify its underwriting portfolio by reinsuring business underwritten at Lloyd's to which it would have limited access through its existing operations.  The partnership with CUAL, the largest managing agency at Lloyd's, will also allow China Re to expand its knowledge of how international insurance and reinsurance is underwritten in the Lloyd's market.  As part of the partnership, China Re employees will be seconded to CUAL to gain first-hand experience working in the Lloyd's market.

The quota-share reinsurance underwritten by Syndicate 2088 will allow Catlin to increase premium volume in 2012 - at a time when rates are expected to rise for certain classes of business - without seeking additional capital from existing shareholders

Furthermore, the partnership with China Re will allow Catlin to expand its knowledge of insurance and reinsurance practices in China, allowing the Group to increase its presence in this rapidly growing marketplace.  Catlin established offices in Hong Kong in 2006 and in Shanghai in 2007, and it is currently the largest participant in Lloyd's China (Lloyd's Insurance Company (China) Limited), which was also established in 2007.

Stephen Catlin, chief executive of Catlin Group Limited, said:

"I am extremely pleased to announce our strategic partnership with China Re.  This alliance will create a new Lloyd's special purpose syndicate, which will provide reinsurance support that will allow Catlin to take greater advantage of emerging improvements in many business classes without the need to increase capital.  More importantly, I believe that the Group's partnership with China Re will lead to our increased understanding of the Chinese marketplace, which will produce significant advantages for Catlin in the years ahead.

"I am particularly pleased to welcome some of China Re's employees as secondees to Catlin."

Dr. Li Peiyu, Chairman of China Re Group, said:

"I am very pleased to announce the strategic partnership between China Re and Catlin and the establishment of China Re-invested Syndicate 2088. I am also grateful to the Lloyd's Executive Committee and Franchise Board for the approval of Syndicate 2088, the first Chinese direct investment into Lloyd's.

"As the biggest reinsurance company in China, China Re's strategy is to grow both in the home market and abroad, and to have a greater involvement in international markets.  Setting up Syndicate 2088 and our alliance with Catlin will be a milestone in China Re's international strategy.  This new venture will not only help us to gain a better knowledge of Lloyd's and benefit from its worldwide network, but it will also increase China Re's experience of international reinsurance operations and management and help build a foundation for China Re to grow into an important player in the world reinsurance market.

"This strategic partnership will be good for both China Re and Catlin, and I trust it will lead to future of co-operation and development between us." 

About China Re

China Reinsurance (Group) Corporation was jointly founded by the Ministry of Finance of China and Central Huijin Investment Corporation with 15.09% and 84.91% stakes, respectively. The Group is the only state-owned reinsurance group in China with a paid-up capital of RMB36.408 billion and gross premium income of RMB38.13 billion in 2010.  It was first assigned an 'A' (Excellent) rating by A.M. Best in July 2010, which was reaffirmed in August 2011. 

Through its six subsidiaries - China Property & Casualty Reinsurance Company Ltd.('CPCR'), China Life Reinsurance Company Ltd.('CLRC'), China Continent Property & Casualty Insurance Company Ltd.('CICC'), China Re Asset Management Company Ltd.('CRAMC'), China Insurance Media Company Ltd.('CIMC') and Huatai Insurance Agency & Consultant Service Ltd.('Huatai Service') - China Re Group provides comprehensive products and services, including not only reinsurance but also direct insurance, asset management, insurance brokerage and insurance media service. A diversified and professional business structure has now taken its shape.

Along with several significant transformations, China Re Group has played a positive part in cultivating China's reinsurance industry, facilitating the growth of the direct insurance market and supporting social and economic development.  As a reinsurer, China Re Group has long been playing a dominant and leading role in China's insurance market.  Through years of effort, China Re Group has built a high-level professional management team in various fields including actuarial, underwriting, claims, risk management, product development, and strategic research and development.

As a leading company in China's reinsurance industry, China Re Group has been also playing a increasingly important role in the international reinsurance market. China Re Group is now the chairing member of the management company of China Nuclear Insurance Pool ('CNIP'), vice-chairing member of the China Space Insurance Pool ('CSIP') and a member of the Executive Committee of the Federation of Afro-Asian Insurance & Reinsurance ('FAIR').

Looking ahead, China Re Group will build up itself to be a comprehensive international reinsurance group with sustainability, core competence, adequate capital and good performance.

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For more information contact:

Media Relations:
James Burcke, Head of Communications, London	Tel: Mobile: E-mail:	[phone] [phone] [e-mail]
Liz Morley, Maitland	Tel: E-mail:	[phone] [e-mail]
Investor Relations:
William Spurgin, Head of Investor Relations, London	Tel: Mobile: E-mail:	[phone] [phone] [e-mail]

Notes to editors:

1.   Catlin Group Limited, headquartered in Bermuda, is an international specialist property/casualty insurer and reinsurer writing more than 30 classes of business worldwide through six underwriting hubs. Gross premiums written in 2010 amounted to US$4.1 billion.

2.   Catlin has established operating hubs in London, Bermuda, the United States, the Asia-Pacific region, Europe and Canada. Through these hubs, Catlin works closely with policyholders and their brokers. The hubs also provide Catlin with product and geographic diversity. Altogether, Catlin operates more than 50 offices in 20 countries.

3.   Catlin's underwriting units are rated 'A' by A.M. Best and Standard & Poor's.

4.   Catlin shares are traded on the London Stock Exchange (ticker symbol: CGL). More information about Catlin can be found at www.catlin.com.

5.   Exchange rates as at 17 November 2011: RMB1 = US$0.1574; RMB1 = £0.0997.

 

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