News


he CEO of insurance-linked securities (ILS)


investment manager Leadenhall


Capital Partners said its partnership with Amlin will become increasingly important at this year’s renewals, as the trend of so-called tiering in the market, whereby cedants prioritise partnerships with bigger players, becomes even more pronounced. Amlin owns a 75 percent


stake in


Leadenhall. Speaking to Monte Carlo Today, Luca Albertini, CEO, Leadenhall Capital Partners, said that as insurers continue to reduce their reinsurer panels, combining capacity will be a huge benefit for both companies. “For example, Zurich’s cutting 20 reinsurers


will not affect just the Zurich panel,” he said, referring to a story run by Monte Carlo Today Day 3. “Therefore putting our capacity together


with our partner is important for us. This will also help Amlin to remain relevant. “Capital markets players have very specific


appetites, and there are a number of limitations, so being able to make an independent decision, but then create a proposal with a partner the size of Amlin, allows us to offer a solution that could cover programmes across layers.” Albertini said the partnership allowed the


company’s allocation of business in the June/ July renewals to be more active than expected,


Luca Albertini


but added that the investor base remained much the same. “Our investors haven’t evolved that much


over the last few years,” he said. “They are predominantly pension funds and they know the space very well and are very experienced within it.


WEDNESDAY 16.09.15


Amlin-Leadenhall partnership benefits both T


“One thing these investors have always


looked for is relative value, so one of the areas of concern has been the steep decline in reinsurance premium over the last two years. That is something that


they monitor and


compare to yields in other assets.” Albertini said investors were pleased that the


June/July renewals appeared stable and that a pricing floor seemed to have been found. He added that for traditional ILS funds such


as Leadenhall, interest in the funds remain stable but maybe not as strong as in previous years. “Industry reports suggest that some of my competitors have had a reduction of their assets under management and cat bond funds have suffered reductions. While there may be a net out for some, we’re still receiving money from new investors,” he said. Speaking of the Rendez-Vous, Albertini said


that compared with previous years, the first topic of conversation has not led directly to rates going down, but more to the impact of retentions. “Articles about insurers reducing their


reinsurance panels are more important in this Monte Carlo, and some painful choices will be made on insurance panels, but that won’t necessarily drive prices down that much,” he said. n


Growing influence of Asian players reflected at Rendez-Vous W


ith premium growth in Asia strong compared with almost any other region,


it is little wonder that more insurers, reinsurers and advisers from there are attending the Monte Carlo Rendez-Vous, according to James Dowd, head of broker TigerRisk’s Asia practice. “As we have all observed, premium growth in


Europe is flat and it’s only slightly better in North America,” he said. “When it comes to growth in insurance and reinsurance, the 21st century belongs to Asia. “According to authoritative sources such as


Munich Re and Swiss Re, premium income in Asia-Pacific will double by 2020. The region will generate nearly half of the world’s premium growth in that same period. Emerging Asia, led by countries such as China and India, will generate 70 percent of that growth.” He said it makes sense, therefore, that players


from these markets should attend the Rendez-Vous. “Their presence is evidence of increasing global interdependence,” Dowd said. “Monte Carlo is great place to window shop,


learn of innovations and initiate relationships across a global spectrum of attendees. Mature European and North American markets are looking for new markets and new partners. “TigerRisk is fully embracing the growth


potential in Asia. We recently opened an office in Hong Kong staffed with an exceptional team,


with vivid aspirations for a more


significant presence in Asia. We look forward to introducing new ideas and approaches that will enable our Asian friends to grow in size and product offerings,” he said. He added that according to data from Munich


Re, 40 percent of all natural catastrophes since 1980 have occurred in the region. Moreover, due to


10 | MONTE CARLO TODAY | DAY 4: Wednesday September 16 2015


climate change, weather-related catastrophes have tripled over the last 30 years. “There is an increasing awareness and


numerous calls to action from Asian governments to better assess and identify their implicit natural risk exposures and seek private enterprise funding solutions. Governments want to get out of the business of being the reinsurer of last resort. We want to assist in that objective. “We are all confronted with the reality of


our global interdependence when it comes to identifying and accessing international financial capacity to absorb catastrophic events. A tremor in Asia will cause an instantaneous response in Europe, North America, Bermuda, Singapore and beyond. “Look around while you are here and see if you


don’t agree: Monte Carlo is visibly and tangibly more diverse. Diversity is healthy for all of us.” n


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