JV to build traded risk arm
Amlin PLC
06 May 2008
AMLIN PLC
PRESS RELEASE
For immediate release
6th May 2008
Amlin launches traded insurance risk venture
Amlin plc, the leading Lloyd's insurer, today announces its intention to form a
new Investment Management Partnership with John Wells and Luca Albertini. John
Wells will become its Chairman and Luca Albertini its Chief Executive.
The new venture, which is subject to FSA authorisation, will manage funds
focused in traded insurance risk. It is intended that the company will launch
its first fund in 2008.
This management company is the first such venture to be backed by a Lloyd's
insurer, whose considerable underwriting expertise significantly strengthens the
fund offering. Amlin will be an investor in the fund.
For insurers, the capital markets have provided new sources of capital and new
instruments at a time when capital and risk management have become increasingly
important. For investors, insurance related assets have provided a new asset
class with a very good risk return profile but with very low correlation to
traditional equity, fixed income and real estate asset classes, as has been very
clearly demonstrated during the last year. The Insurance Linked Securities (ILS)
market has grown exponentially in the last few years and is an established
sector within the capital markets and with more insurers and reinsurers actively
participating in it as protection buyers or protection sellers.
John Wells spent almost 20 years as an investment banker with the NatWest Group
in London and Tokyo. In 2000, he was one of the four founding members of Swiss
Re Financial Products where he led the development of Swiss Re's platform for
traded insurance risk.
Luca Albertini has extensive experience in both banking and insurance having
spent time at the securitisation units of Citicorp, GE Capital (including an
assignment within GE's European reinsurance business) and Credit Suisse First
Boston. From 2003 Luca headed the European Insurance Linked Securities team of
Swiss Re Capital Markets, where he was responsible for developing one of the
largest and most successful ILS teams in Europe.
Charles Philipps, Chief Executive of Amlin said: 'Amlin intends to be an active
participant in the Insurance Linked Securities market, both to enhance our
capital and risk management capabilities and to generate returns from the growth
and high margins available in this business. The combination of Amlin's proven
reinsurance expertise with John and Luca's wealth of relevant capital markets
experience makes the new company a strong proposition in a developing market.'
John Wells commented, 'Amlin is a highly respected specialist reinsurer with a
clear strategy to diversify into the traded markets. Through this joint venture,
we will benefit from industry-leading intellectual capital, underwriting rigour
and outstanding risk origination capability which I believe will provide a
superior risk profile to that normally available to arms length investors.'
Luca Albertini said, 'In this growing industry there is a need for specialised
investors which have both a solid understanding of the ILS and capital markets
as well as a proven underwriting record.'
Enquiries:
Charles Philipps, Amlin plc 0207 746 1000
John Wells/Luca Albertini 0207 746 1000
Hannah Bale, Head of Communications, Amlin plc 0207 746 1118
David Haggie / Peter Rigby, Haggie Financial 0207 417 8989
Notes to Editors:
Amlin plc is a recognised leader in the London insurance and reinsurance market,
providing a global client base with risk management solutions. Amlin specialises
in four business areas: Aviation; Marine; UK commercial; and International
property and casualty insurance and reinsurance. A FTSE-250 quoted company,
Amlin owns 100% of its £825m capacity for 2008 which is written through Lloyd's
Syndicate 2001. Amlin's Syndicate is rated 'A+' (Excellent) by AM Best and 'A1'
(Stable) by Moody's.
In November 2005, the company established Amlin Bermuda, a reinsurance business
capitalised at US$1 billion and rated A (Excellent) by A.M. Best and A by
Standard & Poor's. In November 2007, the company established Amlin Singapore as
part of the Lloyd's Asia platform to provide regional clients with marine
energy, cargo, property, sabotage and terrorism insurance.
This information is provided by RNS
The company news service from the London Stock Exchange
Latest directors dealings
- 2 days ago City of London Investment Group
- 2 days ago Aberdeen Group plc
- 2 days ago NATWEST GROUP
- 2 days ago Ondo Insurtech
- 2 days ago Banco Santander S.A.