Insurance Jottings
Convex Group launches with London and Bermuda regulatory approval
Stephen Catlin has formally unveiled his new international specialty (re)insurer with US$1.8 billion of initial committed capital, an AM Best A- (excellent) rating and regulated platforms in Bermuda and London approved to begin underwriting from the 1st May.
Convex will underwrite insurance and reinsurance for complex specialty risks across a diversified range of business lines.
The invested capital comes from Convex’s management team, Onex Partners V, Onex Corporation’s large-cap private equity fund, PSP Investments and a consortium of co-investors.
Mr Catlin, who founded the Catlin Group and is regarded as one of the biggest names in commercial insurance, believes that his latest venture is well equipped to prosper in a challenging market.
The company’s management team will include Mr Catlin as chairman and chief executive officer, Paul Brand as deputy CEO, Benjamin Meuli as chief financial officer, Robina Malik as general counsel, Adrian Spieler as chief operating officer, Doug Howat as chief underwriting officer insurance, Matt Paskin as chief underwriting officer reinsurance, and Mark van Zanden as head of portfolio optimisation.
German and UK regulators pen post-Brexit supervisory agreement
German financial services watchdog BaFin and the UK’s Prudential Regulation Authority (PRA) have penned an agreement to secure continuity of oversight for insurance firms operating in the UK and Germany post-Brexit.
Talanx, Hannover Re change underwriting policies for coal-based risks
Germany-based Talanx Group and Hannover Re have tightened their underwriting policies to reduce reinsurance cover for coal-based risks.
The move is part of wider efforts at the company to cut its long term exposure to coal-fired power plants and coal mines. It said that for stand-alone risks, the company will not reinsure any planned new coal-fired power plants or coal mines.
However, in countries where coal accounts for a large proportion of the energy mix and where access to alternative energy sources is insufficient, exceptions would be made. But only after a review of technical standards.
From 2038 onwards, Hannover Re plans to stop reinsuring coal-based power-generation risks in its property and casualty portfolio. It said the longer time frame “makes allowances for the fact that the phase-out of fossil fuels can only take place over the medium to long term”.
The group emphasised its support for the Paris Agreement goals on climate change and reiterated that in Europe 17 of 28 EU member states have decided to phase out fossil fuels or are considering it.
To support the Paris Agreement, the reinsurer no longer invests in issuer securities which generate 25 percent or more of their revenues from coal-based energy production. It also backs a broader transition to renewable or alternative energy by writing more risks for this burgeoning sector.
Talanx also confirmed that it will “continue to progressively expand its investments in renewables and climate-friendly technologies”. It said it has already made direct investments of more than €1.3 billion in renewable energy sources such as wind and solar power.
AmTrust at Lloyd’s and Canopius sign merger agreement
Specialty re/insurer Canopius has signed a definitive agreement to merge its Lloyd’s business with AmTrust at Lloyd’s, a division of AmTrust Financial.
From the 1st January 2020, Canopius will merge its Syndicate 4444 with AmTrust Syndicate 1861 under the management of Canopius Managing Agents.
As part of the deal, AmTrust Financial Services will become a significant minority shareholder in Canopius.
The transaction is expected to complete in the third quarter of 2019, subject to regulatory approvals.
Together the companies aim to create a top-five insurer at Lloyd’s with combined premiums of approximately US$2.2 billion.
Former TMK marine team set to launch MGA Amphitrite
A four-strong team made up of former Tokio Marine Kiln employees is gearing up for the launch of a new London-based marine MGA.
Shepherd Compello targets European growth with Dutch subsidiary
Specialist Lloyd’s broker Shepherd Compello has launched a new operation in Assen, the Netherlands, to support plans to expand in Europe and to mitigate any negative Brexit fallout.