Review
The business – Amlin Bermuda
Product range
Catastrophe reinsurance continues to account for the largest part of Amlin Bermuda’s portfolio. Other forms of reinsurance are written through treaty arrangements on both a proportional and individual risk excess of loss basis. All reinsurance products are similar to those provided by Amlin London, the nature of which is described in more detail here.
Amlin Bermuda’s catastrophe business also has a regional focus, consisting of local insurers with original portfolios of small commercial or homeowners business. This strategy is important, as not only is it much easier to model, but it also provides diversification by zone to the catastrophe book. 36% of the catastrophe direct book is US based catastrophe business. The balance of the account is spread throughout the world.
During 2008, Amlin Bermuda continued to write a 12.5% whole account quota share reinsurance of Syndicate 2001.
The whole account quota share facility provided an important kick start to the Bermudian business in the initial months after set up. On an ongoing basis, the arrangement is fundamenal in providing Amlin Bermuda with greater balance to its portfolio.
Other reinsurance facilities exist with Amlin Bermuda to enable the Syndicate to write larger lines on both selected individual risks and specific portfolio in marine, aviation, property and certain specialist classes.
Exposure management is key. The direct catastrophe account is controlled by setting strict aggregate zonal disaster scenario limits. For 2008 these were a maximum of US$300 million and US$350 million for single and multiple zone events respectively.
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