Insurance Jottings

New Re/Insurer ‘Vantage Risk’ Launches, Led by Former Arch, AXA XL Executives

A new re/insurance group, called Vantage Group Holdings Ltd, has launched with US$1 billion of equity capital, provided by private equity firms The Carlyle Group and Hellman & Friedman (H&F) as well as management.

 

The company’s CEO is Greg Hendrick, a 30-year industry veteran and former CEO of AXA XL. Dinos Iordanou, retired president and CEO of Arch Capital Group Ltd, is Vantage Risk’s non-executive chairman.

 

Underwriting via its subsidiary, Vantage Risk Ltd, Bermuda, the company has begun to offer property catastrophe reinsurance (covering predominantly North America, Europe, Japan and Australia) as well as specialty reinsurance across property and casualty classes, including marine, energy, aviation, crop, workers’ compensation, property per-risk and mortgage.

 

In 2021, Vantage intends to launch insurance products in both the Bermuda and North American markets.

 

In addition to Messrs Hendrick and Iordanou, the firm’s leadership team includes several career industry executives:

 

  • Chris McKeown, chief executive of Reinsurance, Innovation and ILS

 

  • Jack Kuhn, chief executive of Insurance

 

  • Aurora Swithenbank, chief financial officer

 

  • Peter Hahn, chief data and analytics officer

 

  • Gail McGiffin, chief information and operations officer, effective January 2021

 

  • Bobbi Andersen, general counsel

 

  • Nikki Gonzalez, chief talent officer

 

  • Peta White, president of Vantage Risk, effective January 2021

 

  • Nick Pritchard, head of Property Catastrophe Underwriting

 

Vantage “will utilise industry-leading talent and technology to underwrite business where existing capacity is shrinking,” said the company in a statement.

 

Brian Schreiber, head of Carlyle Insurance Solutions, said, “Vantage is launching at an opportune time, when the market needs additional risk capacity and knowledgeable underwriters who understand the evolving nature of risk management.”

 

David Tunnell, partner at H&F, said: “For the first time since 2001, the global re/insurance markets are clearly demanding fresh capital and fresh thinking. We are excited to partner with Greg and Dinos – who we have known and admired for decades – and the team they have assembled at Vantage.”

Carlyle’s equity capital for the investment comes from Carlyle Partners VII, an US$18.5 billion fund which focuses on buyout transactions in the US, and Carlyle Global Financial Services Partners III, LP, a dedicated financial services buyout fund.

 

H&F has deployed capital from Hellman & Friedman Capital Partners IX, a fund with US$16.5 billion of committed capital targeting investments in select sectors across North America and Europe.

 

JP Morgan acted as sole financial adviser to Vantage.

 

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Increased piracy and kidnap threat in the Gulf of Guinea

Article from Standard Club

30th November

The club continues to closely monitor maritime security threats, especially in the hotspot region of the Gulf of Guinea given the recent increase in piracy and armed robbery incidents there.

 

As reported by the International Maritime Bureau (IMB) in its third quarter report for 2020, there has been a 40% increase in the number of kidnappings in the region compared with the same period in 2019. The IMB reports goes on to say that ’pirates armed with guns and knives are abducting bigger groups of seafarers at further distances off the West African coast’ and that pirate gangs in the area are ‘well organised and targeting all vessel types over a wide range’.

 

The Gulf of Guinea has been a high risk area for some time as designated by the LMA joint war committee. However, the high risk area definition for the region was recently expanded to reflect the enhanced risk of the pirates operating in a much wider area (see further in the club’s circular).

 

How to avoid pirate and armed robbery incidents

The increased threat level prompted a recent joint industry group, including BIMCO, to issue a joint statement advising vessels operating in the Gulf of Guinea to be extra vigilant and ensure all appropriate security measures are taken.

 

Members with ships who may transit high risk areas are strongly encouraged to comply fully with all the recommended best management practice (BMP) planning, voyage and reporting procedures. The BMP are kept under review and version five reflects practical lessons learned by the industry and by the military regarding effective methods to deter and defend against piracy.

 

Guidance is also available specifically in relation to West Africa following the publication of BMP West Africa.

 

The fundamental requirements set out in this guidance include:

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  • Understanding the threat by obtaining current threat information

 

  • Conducting risk assessments

 

  • Implementing ship protection measures

 

  • Registering and reporting with Maritime Domain Awareness Trade – Gulf of Guinea (MDAT-GOG)

 

  • Cooperating with local naval and military forces

 

How the club can assist

The club has an internal maritime security team who regularly produce articles and updates on maritime security trends and issues on the club’s website. A representative of this team sits on the International Group’s (IG) maritime security subcommittee and actively participates in discussions on maritime security issues including but not limited to piracy and armed robbery at sea, and the provision of club cover.

 

With the club’s participation, the IG’s FAQs on piracy were updated in 2019 to reflect various developments since the previous version was published in 2013. The FAQs provide a useful summary of number of important issues including the scope of club cover, exclusions, the interrelationship between different underwriters, private maritime security contractors (PMSCs), BIMCO GUARDCON, insurance for PMSCs, Best Management Practices, West Africa, ransoms and chartering issues.

 

Following the spate of kidnapping incidents in the Gulf of Guinea, especially in 2020, members are reminded that third-party P&I liabilities arising out of incidents of piracy will, provided the ‘weapons of war’ or terrorism exclusions are not triggered, be covered by the club.

 

However, ransom is not a risk which is expressly covered under a member’s P&I entry but cover may be available on a discretionary basis. Similarly, fees and expenses incurred in connection with ransom negotiation may only be covered on a discretionary basis.

 

One issue relevant to the exercise of that discretion is the availability of alternative insurance. With this in mind, kidnap and ransom (K&R) cover for shipowner members transiting high risk piracy zones is available in the market. Members are strongly encouraged to consider taking out K&R cover where appropriate.