F. Amlin Bermuda risks
Amlin Bermuda was formed in December 2005 to directly write a short tail portfolio of reinsurance business and to reinsure part of the Syndicate 2001 portfolio. The direct written portfolio consists of the following classes with maximum line sizes and split by territory.
Amlin Bermuda direct business risks
|
2008 Gross premium £m |
Current maximum line size £m |
2008 Average line size £m |
|
|
Catastrophe reinsurance (per programme) |
211.1 | 75.0 | 8.7 |
|
Proportional reinsurance |
70.4 | 12.5 | 1.5 |
|
Per risk property reinsurance (per programme) |
55.7 | 12.5 | 3.2 |
|
Special risks |
9.5 | 30.0 | 3.5 |
|
Marine reinsurance |
4.2 | 20.0 | 4.9 |
|
Aviation reinsurance |
0.8 | 20.0 | 4.5 |
|
Accident & health |
0.9 | 10.0 | 1.9 |
|
Bloodstock |
0.5 | 10.0 | 1.7 |
|
Casualty |
0.2 | 10.0 | 2.5 |
Notes:
- Premium are stated gross of acquisition costs.
Amlin Bermuda’s direct business has strong similarities to the portfolio of the Reinsurance business unit of Syndicate 2001. A large proportion of the business written emanates from London broker markets and is frequently seasoned business already underwritten by Syndicate 2001. Risk balance is provided by a whole account quota share of Syndicate 2001. This is further supplemented by a number of specific variable quota share treaties on short tail classes such as property and energy.
Property reinsurance is written through treaty arrangements on a proportional, individual risk excess of loss, or catastrophe excess of loss basis. The catastrophe reinsurance portfolio is the largest class of insurance risk written by Amlin Bermuda. Exposures to each programme are currently limited to $12.5 million per risk and $75 million any one catastrophe programme, with modelled maximum event limits of $300 million any one zone and $320 million for losses affecting more than one zone.
The special risks account includes small premium classes mostly relating to terrorism reinsurance but also includes nuclear and contingency which is written in all parts of the world.
The accident and health class is written through medical expense schemes in the USA and provides personal accident reinsurance worldwide. Personal accident reinsurance could be impacted by a single or series of accidents to high value insured individuals or from a multiple death and injury event such as an air crash or natural catastrophe.
To date the Bermuda subsidiary has written risks without the protection of a reinsurance programme and therefore it has higher net retained exposures to individual risk losses or catastrophe than the Syndicate currently bears.
