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Reinsurance is Amlin London’s largest business unit. Amlin is a recognised leader in the reinsurance market and leads 51% of business underwritten. Business is written worldwide but the major geographic market is the US. Apart from the proportional reinsurance written, all business is treaty excess of loss reinsurance. The largest single class written is catastrophe reinsurance. This protects insurance companies against catastrophic losses, normally from natural causes such as windstorm or earthquake, which may impact more than one risk written by a client. The account is focused on clients that have exposures in contained territories, or zones, in order to give Amlin increased control over the exposures to catastrophic events. Therefore, in the US our clients are typically single state insurance companies or mutuals, rather than nationwide US companies.

Reinsurance is also written to provide cover to insurance companies which write large property, marine or aviation portfolios. This typically provides protection for large claims incurred by our clients and limited catastrophe protection is provided.

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The Property & Casualty business unit underwrites international insurance, and some reinsurance business across a number of classes. Amlin is a market leader in Property & Casualty classes, leading 43% of the business we write.

Geographically the US is the unit’s largest market, although business is written globally. 30% of business written is facultative (re)insurance, and the balance is accepted through lineslips or binding authorities.

Property insurance is the largest class written and covers small and large commercial enterprises with insurance for fire, flood, earthquake and wind damage and associated business interruption. The portfolio is written with the aim of achieving territorial diversification. Coverage for automobiles in the US and a number of other territories also provided for fire, theft and collision.

The US casualty portfolio provides insurance and reinsurance cover to individuals or companies to indemnify against legal liability. The business is spread across general casualty, professional indemnity, medical malpractice and errors and omissions cover. Claims usually arise through professional error, negligence or an accident. We contain exposure by maintaining low line sizes and avoiding casualty business exposed to systemic or generic industry issues.

Accident and health is written through medical expense schemes in the US and direct personal accident cover or personal accident reinsurance worldwide. Medical expense cover is subject to high frequency of claim and significant medical cost inflation. Personal accident insurance is exposed to single or a series of accidents or a multiple death or injury event.

Until November 2008 trade credit insurance was written in the UK, protecting against the insolvency of debtors in the normal course of trading. Following a review the Group decided that it would no longer be offering renewals to customers or seeking new business opportunities in this class.

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The Marine business unit writes a combination of volatile and attritional classes. Business written is worldwide, but the bloodstock and yacht accounts have a strong UK bias. Amlin is a key participant in the marine market and leads 41% of insurance underwritten. The majority of business is written via lineslips and binding authorities, with Amlin’s own service companies sourcing 16.1% of business to classes such as yacht, bloodstock and cargo in 2008.

The energy portfolio is the largest single class of business with cover for platforms and drilling rigs including the construction thereof. Cover for wells in the course of being drilled and Business Interruption coverage provides companies with protection from loss of production following an event. The single largest territory covered is the Gulf of Mexico.

The hull, yacht and cargo accounts provide property damage insurance to ships, yachts and loss protection against, or damage to, a large variety of cargo or goods in transit. Although claims are largely attritional, there is potential for single large individual claims. The yacht business is supported by the Haven and St Margaret’s brands operating through an Amlin service company.

The specie account covers damage to, or theft of fine art, the contents of vaults and other high value goods, including jewellers’ block and cash in transit. Exposure is to a frequency of small claims and also large individual losses.

The war and terrorism account provides property insurance cover for single incidents or a series of losses from concerted action.

The bloodstock account protects for death, illness or injury to horses for racing and eventing or breeding studs. 74.4% of cover is written through the Amlin Plus service company.

The marine liability account provides insurance for ship-owners, harbours, charterers and energy companies against damage or injury to third parties. This includes cover for pollution damage.

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Our Aviation business unit provides insurance for the aviation and aerospace industries. Policies are exposed to large loss events and potential catastrophic losses. Due to the nature of the risks covered, particularly for airline clients, the line written is often large and a comprehensive reinsurance programme is needed to allow account balance to be maintained. The pricing cycle for airline risk is also volatile and disciplined underwriting is required to balance risk and reward.

Amlin leads 43% of business written. Most business is written direct or as facultative reinsurance.

The airline and general aviation accounts provide insurance for property damage or liabilities arising from an aircraft accident. Product liability insurance covers manufacturers against accidents arising from faulty parts or equipment, or poor servicing of aircraft.

The airport liability account covers airport operators, refuellers and air traffic controllers against losses arising from injury caused by their activities or occurring on their premises.

Space business protects property and liability during launch and operation of satellites whilst in orbit for a limited period, normally a year.