Conan Ward Gregory Hendrick
Executive vice president and President and chief
chief underwriting officer underwriting officer
Validus Reinsurance XL Re
Conan Ward has been executive vice president and chief underwriting Gregory Hendrick is president and chief underwriting officer at XL Re. He
officer at Validus Reinsurance since its formation in 2006. Ward was was also previously vice president and underwriter of XL Mid Ocean Re and
previously executive vice president of global reinsurance at Axis Capital Mid Ocean Re, and prior to that served as assistant vice president of treaty
Holdings and is a founder of Axis Specialty. From 2000 to 2001, he was underwriting for the Winterthur Reinsurance Corporation of America.
a senior vice president at Guy Carpenter & Co.
How did you get into underwriting?
I started out as an actuarial analyst, but later decided to try underwriting.
How did you get into underwriting?
In 1989, Winterthur Re hired me and I struck a deal with my new boss—
Although once a broker, I felt that underwriting would give me teach me how to underwrite and I will automate all the pricing systems.
a better perspective on the entire market and allow me to hone my
analytical and technical skills.
What motivates and excites you about the sector?
The increasing level of convergence between capital markets and
What motivates and excites you about the sector?
reinsurance. I have been involved with sidecars, cat bonds, exchange-
traded products and index formation during my career. Each has
Reinsurance is a very efficient market. Billions of contingent capital
enhanced the portfolios of the traditional reinsurers that use them in
is arranged within short timeframes, without ‘road shows’ or armies
their risk management process.
of lawyers. Crafting a fair agreement from start to finish can also be
hugely satisfying.
What would you like to change about the industry?
I would like to see greater efficiency in the documentation and
What would you like to change about the industry?
administration of reinsurance transactions. Our industry wastes a lot of
I love reinsurance for its free-market nature. When our cost of capital time checking and rechecking the same information across thousands
changes, we can rapidly adapt our prices and risk appetite accordingly. of transactions.
Our customers, who are too often overregulated, do not have nearly
that degree of freedom. When regulators engage in price-fixing, the
What do you consider to have been your biggest personal achievements?
result is always predictable—shortages in supply. So, I’d love to see a
Being asked to run XL Re Bermuda. It was the culmination of a great
more flexible rate environment in the insurance market.
deal of hard work and effort, not just by me, but by our outstanding
team. Being asked to lead them was an honour and a privilege that I still
What do you consider to have been your biggest personal achievements?
enjoy today.
I am proud to have been involved in forming Validus and Axis in
Briefly describe your most challenging task.
Bermuda. Validus has been a wonderful experience, because we were
Following the losses from Katrina, Rita and Wilma, I spearheaded
able to team up a talented group of underwriters with a world-class
a project for XL Re that shed 40 percent of our catastrophe exposure
analytical group.
in 12 months. We decided that the best method was a quota share
arrangement with a new sidecar reinsurer. In approximately two
Briefly describe your most challenging task.
months, we had provided the data and analytics necessary for the lead
The most difficult part of the job is cycle management. We try to
investor, Highfields Capital Management, to invest and lead the fund-
keep an even keel with clients and brokers throughout the cycle in
raising effort. We negotiated numerous documents and participated in
order to keep quality business in our portfolio over the long term.
debt-raising teleconferences, all by the beginning of December. It was
hectic, but very rewarding.
What is the best piece of advice you have received during your career?
What is the best piece of advice you have received during your career?
Know your business and your client, be firm, fair and truthful, and
Jamie Veghte and Bob Nason both told me the same thing: “Never
demand the same from your clients and brokers, and only negotiate
underwrite what you don’t understand.” This has served me well
when you are prepared and know what you are willing to agree to.
numerous times during my underwriting career.
What are your hobbies?
What are your hobbies?
I like to get out with the family and go boating, fishing and golfing.
In my spare time outside work and family, I play golf, read and enjoy
I also enjoy history and politics. basketball as a fan, coach and player.
Bermuda Re/insurance . June 2009 49
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