News


ompo Canopius Re, a new reinsurer formed this week to manage reinsurance business


previously written separately by Canopius and Sompo Japan Nipponkoa Insurance, is set to establish a new office in the US targeting a completely new business stream. Monte Carlo Today has learned that efforts


WEDNESDAY 16.09.15


Sompo Canopius Re to attack US market S


are underway to hire a specialist team that will operate out of the US and concentrate on new lines of business that have previously remained untapped by both Canopius and Sompo as standalone entities. Chairman Michael Watson said: “Yes, we


are looking to bring new people on board for a new class of business. “We want to increase scale there. Over the


next 12 months two new underwriting teams will be coming on board and later this year there will be a new branch opening in the US. We are actively looking to develop the franchise.” He added that the company wanted to “ramp up accident and healthcare, which has good potential for growth”. It will also be looking to increase its specie


business where historically it has been a modest player. Now it will seek a “more prominent position”. “We


have huge advantages through


ownership—their financial strength will help us grow the business, although there is no pressure


Michael Watson


“Sompo and Canopius coming together can find ways to bring to market something that is bigger and better.”


to go out and grow the business today. They are patient and take a long-term view,” Watson said. Watson also suggested that Sompo’s existing


global licensing deals will help it mine new business in areas where Lloyd’s currently has no presence. The new combined company will operate


Compre eyes market possibilities L


egacy specialist Compre is eying future deals in the European market as it awaits


completion of its recent acquisition by CBPE Capital. Nick Steer, chief executive of Compre, said


the acquisition will give the company, which specialises in run-off business, access to more financial muscle. Steer said the company was already seeing the benefits of the new financial backing. “We have one new deal completed, three


underway and another in the pipeline,” he told Monte Carlo Today. Although he could not go into any further details, due to confidentiality issues, he did add that at present the run-off market is opening up a lot, with the London Market advancing and the European market catching up.


Will Bridger,


under one underwriting philosophy, led by Markus Eugster. It also brings some new ways of operating


for Canopius. For example, it is subject, as a Sompo affiliate, to oversight from the Japanese financial services authority. Watson also admitted that the respective


cultures of the two firms had been different. “Their culture is more reserved than our more confrontational style. We have had to interpret what their thinking is but I think they understand what we are doing today and the way we work, and we are getting to know them,” he said.


“Sompo and Canopius coming together can


find ways to bring to market something that is bigger and better.” The operation’s head office has moved away


from Bermuda since the deal, to Switzerland. “Basically,


it was considered a better global


hub for the Japanese,” said Watson. “They like to do things properly. They are respectful of the established order and they don’t like to cut corners and are comfortable operating in the background.” It was for these reasons that Bermuda’s


tax regime had too many implications for the Japanese management team. However, Watson confirmed, the new company will maintain a presence on the Island with an increased headcount. n


managing


director


of


acquisitions at Compre, added that the German market especially was opening up. “The key recent event has been the activity that took place last year, when Munich Re and Allianz both announced deals. Hopefully after this other firms will follow their lead.” In the meantime Compre will continue to


focus its activity in Europe, as at present UK run-off deals tend to be either quite small or very large. The impact of Solvency II will be carefully monitored by the company, as many market participants are still assessing just what they will have to do under the new regime. Compre is also watching events in the US,


which has the biggest run-off market in the world, and which is also the location of many of the company’s liabilities. n


16 | MONTE CARLO TODAY | DAY 4: Wednesday September 16 2015 Nick Steer www.intelligentinsurer.com | www.bermudareinsurancemagazine.com


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