European Reinsurance Company
European Reinsurance Company
Amlin Plc
Amlin plc announces its intention to establish a European reinsurance company in Switzerland
Amlin plc (“Amlinâ€) announces its intention to establish a reinsurance company in Switzerland to provide European reinsurance buyers with Amlin’s first-class security and service delivery. We believe that the company will provide the European insurance market with a meaningful alternative for high quality reinsurance capacity especially for small and mid-sized companies. Amlin aims to establish long-term partnerships with companies operating in this sector which will provide the group with access to European reinsurance business that does not typically flow into the London and Bermuda marketplaces.
As part of the project Amlin intends to re-domicile its legal carrier Amlin Bermuda Limited (“Amlin Bermudaâ€) from Bermuda to Zurich. It is proposed that the new Zurich-based Swiss company will be named Amlin AG and that the existing operations of Amlin Bermuda will become a Bermuda-based branch of Amlin AG.
Amlin remains committed to Bermuda as a key operating platform. Amlin has 32 employees in Bermuda and expects that figure to grow over the years as the Bermuda business develops further. Amlin Bermuda will continue to serve its existing reinsurance clients and brokers in exactly the same manner as it does today. Amlin Bermuda policyholders will be unaffected by the redomicile. Amlin plc remains a UK domiciled company.
Amlin AG’s Zurich-based underwriting unit (to trade as “Amlin Re Europeâ€) will be staffed by a core team recruited from Swiss Re, headed by Philippe Regazzoni who will become Chief Executive Officer of Amlin AG.
“This is an exciting opportunity to establish another significant reinsurance business with a first-class underwriting team, led by Philippe Regazzoni, which possesses a wealth of experience in Continental European markets†commented Charles Philipps, Chief Executive Officer of Amlin plc.
Mr Regazzoni added, “We are excited by the prospect of building a third significant reinsurance business within the Amlin group and helping to reinforce Amlin’s position and brand as a leading international reinsurer. We believe that a focused and well capitalised European reinsurer will provide a strong partner for European brokers and clients.â€
The management team of Amlin Re Europe in Zurich will include Gregoire Mauchamp, who will become Amlin AG’s Chief Financial Officer, and senior underwriters Marc Dejardin (from June 2010), Carl Maeder and Andrea Manella. The Zurich-based team plans to build to 25 people by the end of 2010 and to cover the reinsurance markets in Austria, Belgium, France, Germany, Italy, Luxembourg, Maghreb, Netherlands, Nordics, Portugal, Spain and the UK. Other European markets will be added in 2011.
After a decade of consolidation in the European reinsurance market and recent turbulence in global financial markets, reinsurance buyers are increasingly looking to diversify their insurance risk and spread their counterparty risk. These events present an attractive opportunity for a new and strongly capitalised entrant to offer improved choice to existing European cedants. Amlin AG’s capitalisation will be approximately US$1.4 billion placing the company amongst the leading players in terms of financial strength. The capital will be provided exclusively from Amlin’s existing group resources.
The business written in Zurich will diversify Amlin Bermuda’s existing reinsurance portfolio geographically and by class of business helping to reduce the overall volatility of the portfolio and making more efficient use of the group’s capital and financial strength. The Zurich-based business will focus mainly on non life treaty reinsurance for European insurance companies. Amlin believes that continuity and a clear and transparent underwriting approach offers an excellent value proposition for clients in this segment.
Amlin AG’s incorporation in Zurich, a major financial centre and home to many global financial and (re)insurance companies, will provide an ideal location for the further growth and expansion of the group’s reinsurance activities. We believe that Switzerland provides Amlin with strategic flexibility, a strong professional workforce, a solid legal and regulatory environment and an improved ability to manage our capital.
The redomicile of Amlin Bermuda remains subject to regulatory approvals. Amlin AG’s Zurich-based business unit plans to commence underwriting operations shortly after such approvals have been obtained. The Bermuda branch will continue to trade as Amlin Bermuda.
| Media Enquiries: | Â | |
| Charles Philipps, Chief Executive, Amlin plc | + 44 207 746 1000 | |
| Philippe Regazzoni, CEO designate, Amlin AG | + 41 79 937 3835 | |
| Stuart MacKellar, MD, Amlin Bermuda | +1 441 278 8924 | |
| Hannah Bale, Head of Communications, Amlin plc | + 44 207 746 1118 | |
| Investor/analyst Enquiries: | ||
| Julianne Jessup, Head of Investor Relations, Amlin plc | + 44 207 746 1961 |
Notes to editors:
Amlin London: Amlin London operates through Syndicate 2001 at Lloyd’s. It is organised into four business units: Reinsurance, Property & Casualty, Marine and Aviation, covering 25 classes of business and creating a diverse portfolio or risk. Although business is written worldwide, the key geographic market is the US, which accounted for 51% of business written in 2009. Amlin London is managed by an executive team led by its Underwriting Director, Simon Beale. In 2009 Amlin London wrote gross premiums of £855.7m with a combined ratio of 71%.
Amlin London’s reinsurance unit, headed by Kevin Allchorne, accounted for 43% of business written by Amlin London in 2009. Catastrophe reinsurance is the largest class accounting for 60% of the reinsurance portfolio. The portfolio is global with the US the largest geographical market. Coverage includes US or European windstorm and US or Japanese earthquake. The majority of the portfolio is written on a treaty excess of loss basis with proportional reinsurance accounting for less than 12% of the total.
Amlin Bermuda: Amlin Bermuda operates in the Bermudian reinsurance market, writing predominantly property reinsurance. Amlin Bermuda obtains business from three distinct sources: 1) direct reinsurance business accessed from London brokers but written in Bermuda by an experienced underwriting team; 2) whole account quota share of Syndicate 2001; and 3) variable quota shares of Syndicate 2001. While Amlin Bermuda underwrites risk covering most areas of the world, in 2009 approximately 67% of direct reinsurance business generated was domiciled in the US. Other key geographies include the UK, Japan, Europe and Australia. In 2009 Amlin Bermuda wrote gross premiums of $628.3m and recorded a combined ratio of 55%.
Amlin Bermuda has its own executive team led by Managing Director Stuart MacKellar, Chief Financial Officer Elizabeth Murphy and Underwriting Director Rob Wyatt. The company’s employee base consists of a combination of former Amlin London professionals along with Bermudian and non-Bermudian employees.
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