Spring 2014 Bermuda Re/insurance+ILS 5
Hiscox** Gross premiums written Net income Combined ratio
2013 2012 2011 2013 2012 2011 2013 2012 2011
£1,699.5 million £535.6 million $1,091.9 million £1565.8 million £386.1million £976.2 million £237.8 million £208 million £49.7 million 83 percent 85.5 percent 95 percent
£352.4 million $1,014.1 million £37.8 million £59.7 million
$170.3 million $114.8 million
(£10.6) million $35.9 million 98.2 percent 92.8 percent
*Results are given to one decimal place **Hiscox results are for Syndicate 33 and 3624
* **Markel results are for Syndicate 1400 and 3000 in 2011 and 2012 and for Syndicate 3000 for 2013
growing appetite for coverage, something that couldprove a challenge for individual players.
Another significant component of the Lloyd’s brand value is its ability
to lobby on behalf of its members, said Powell, something that would otherwise consume precious resources within an individual company. “We want to focus on underwriting”, he said, rather than the pursuit of regulatory certainty. Citing recent market regulatory challenges, Powell said “you don’t know which jurisdictions may become difficult in the future, but within Lloyd’s you tend to get a better response as a market collectively.” This ability to present a ‘Lloyd’s position’ is an attractive proposition for market participants.
Innovation’s edge Lloyd’s is also keen to explore innovation, helping syndicates as they
roll-out pioneering client solutions globally. “Lloyd’s is consistently keen to bring new products to market” said Skinner, adding that the market lends strong support to the development of lines in which it has not traditionally been a major player. Skinner said that Talbot has taken the opportunity to build out its construction and financial institutions teams and broadened its product offering in existing areas such as political risk, all with the support of Lloyd’s. It is evident that the market is looking to maintain and develop its USP in providing specialised, global coverage to an increasingly sophisticated marketplace. Developments such as a mooted consortium arrangement among Lloyd’s syndicates in Singapore to provide larger line capacity
“You don’t know which jurisdictions may become difficult in the future, but within Lloyd’s you tend to get a better response as a market collectively.”
to growing local cedants, and the introduction of risks such as cyber, will help to keep the market at the cutting edge.
“Lloyd’s has always had that reputation of being an entrepreneur
and an innovator”, said Brazil. “That really hasn’t changed.” However, he cautioned that the drive for innovation needs to be carefully calibrated. There are also opportunities to bring innovations developed at the company level into Lloyd’s. Powell said that Allied World had done exactly that with a number of the products it had developed, adding that they had been well-received at Lloyd’s. He said that such an approach can help to deliver additional value to the market, drawing successful products in from its constituent participants.
Lloyd’s continues to deliver significant value to its participants, as
evidenced by the growing number of Bermuda and international players building international operations out of London. Its value, and that of its global license network, is likely to grow as re/insurers’ focus shifts inexorably towards emerging market opportunities. There are few market’s better placed to exploit such potential.
79.8 percent 89.9 percent
118.4 percent 99.1 percent
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