European Reinsurance Company

RNS Number : 3837O

Catlin Group Limited

29 June 2010

 



29 June 2010                                                                                                                                 

CATLIN TO ESTABLISH REINSURANCE COMPANY IN SWITZERLAND

HAMILTON, Bermuda - Catlin Group Limited ('CGL': London Stock Exchange), the international speciality property/casualty insurer and reinsurer, announces that it intends to form a reinsurance company in Switzerland to significantly expand the European-based reinsurance business underwritten by the Group.

Catlin has applied to the Swiss Financial Market Supervisory Authority (FINMA) to establish Catlin Re Switzerland.  Subject to regulatory approval, Catlin Re Switzerland will have capital of at least US$1 billion from internal resources and will initially underwrite specialty reinsurance business for which market conditions are favourable. 

Catlin will also apply to the Bermuda Monetary Authority to establish a Bermuda-based branch of Catlin Re Switzerland.  The Bermuda branch will initially underwrite reinsurance of various Catlin Group subsidiaries, business that is currently written by Catlin Insurance Company Ltd. (Catlin Bermuda).  This will provide the Group with increased capital flexibility.

Catlin's existing Bermuda portfolio of open market insurance and reinsurance will continue to be underwritten by Catlin Bermuda.

The formation of Catlin Re Switzerland is a major development in the Group's European expansion strategy.  Whilst the marketplace is currently competitive for most classes of European property/casualty business, the formation of Catlin Re Switzerland will allow the Catlin Group to quickly take advantage of favourable opportunities as they arise in the European reinsurance market, including opportunities created as the result of the forthcoming Solvency II regulatory regime.

As European market conditions improve, Catlin Re Switzerland will expand its portfolio of treaty reinsurance business, particularly concentrating on risks and areas of distribution that are not currently underwritten elsewhere within the Catlin Group.  As is Catlin's established practice, the Group will expand the new company primarily through the carefully targeted recruitment of local underwriting teams whose values and skills reflect those of the Group.  In the meantime, Catlin Re Switzerland will write selected classes of European specialist business for which market conditions are favourable.

Catlin Re Switzerland will build on the existing book of reinsurance business that has been developed and underwritten by Catlin's European offices over the past seven years.

Catlin also announces that Paul Brand, Chief Underwriting Officer of the Catlin Group, will assume the additional role of Chief Executive Officer of Catlin's European Operations.  Reporting to Paul Brand will be Ralf Tillenburg, currently CEO of Catlin's European Hub in Cologne, who will become CEO-European Direct, as well as a CEO-European Reinsurance, whose appointment will be announced soon.  Catlin's European insurance operations will report to Ralf Tillenburg in Cologne, whilst the CEO European Reinsurance, who will be based in Zurich, will be responsible for Catlin Re Switzerland as well as the existing reinsurance operations of Catlin's European offices.

The formation of Catlin Re Switzerland is a major step in Catlin's European expansion, which began in 2003 with the opening of an office in Cologne.  Catlin currently has ten European offices located in Cologne, Zurich, Antwerp, Barcelona, Bergen, Genoa, Innsbruck, Munich, Paris and Rome.  These offices wrote US$175 million in gross premiums during 2009 on behalf of the Catlin Syndicate at Lloyd's and Catlin UK.

Stephen Catlin, Chief Executive of Catlin Group Limited, said:

"I am happy to announce that Catlin has applied to Swiss regulatory authorities for permission to establish a reinsurance company headquartered in Zurich, which will significantly expand the Catlin Group's presence in the European marketplace.  Our ambition is to build Catlin Re Switzerland over time to become a leading European specialty reinsurer.

"The specialist classes of business to be initially underwritten by Catlin Re Switzerland will expand the portfolio of similar business now written by Catlin by focusing on high-quality European risks at a time when market conditions are favourable for these business classes.

"Catlin Re Switzerland will expand over time to write additional classes of business, in line with Catlin's successful practice of organically growing international operations by attracting underwriting teams whose values and practices are in consistent with Catlin's.

"The formation of Catlin Re Switzerland will complement existing Catlin-owned insurance carriers in the United Kingdom, Bermuda and the United States and will offer the Group additional capital flexibility."

Following regulatory approval, which is anticipated in the second half of 2010, Zurich-based Catlin Re Switzerland will commence writing a portfolio of European reinsurance risks that are generally not underwritten by Catlin's existing underwriting teams.  The initial classes of business to be underwritten by Catlin Re Switzerland will include trade credit reinsurance, political risk reinsurance and surety reinsurance.

Joining Catlin Re Switzerland will be Underwriting Directors Martin Hochstrasser and Markus A Eugster.

Martin Hochstrasser was most recently Executive Director at EFG Financial Products in Zurich. He was previously a Managing Director at Swiss Re with key responsibilities in credit and surety reinsurance, trade finance, political risk and structured credit underwriting. He also held positions with Swiss Bank Corporation.

Markus A Eugster most recently was the Principal of MA Eugster Consulting, which held mandates for Atradius Italy and UK investment management firm Channel Capital Advisors LLP. He had previously held Managing Director positions with Swiss Re, including Global Head of Bank Client Relationships as well as Head of Origination and Business Development and Senior Underwriter in Swiss Re's Credit Division.  He has also held positions with Credit Suisse in Latin American commercial banking and structured trade and project finance.

- ends -

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 2009 amounted to more than US$3.7 billion.

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

3.   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 nearly 50 offices in 20 countries.

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

5.   Catlin is the title sponsor of the Catlin Arctic Survey, a unique collaboration between polar explorers and research scientists to improve society's knowledge of potential environmental changes.  Catlin Arctic Survey 2010, which concluded in May, focused on how rising carbon emissions may affect oceans and sea life.  More information is available at CatlinArcticSurvey.com.

 

END

 

 

MSCPGUPWQUPUGMR