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For the last four years our primary strategy has been to create
value by building Amlin to become a leading insurer in
the London Market, recognised by insureds and insurance
brokers as a first choice for leading risks in our chosen
fields of expertise. In so doing our aim has been to
achieve returns for our shareholders over the insurance
cycle that are superior to our peers.
CHARLES PHILIPPS
CHIEF EXECUTIVE
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CHIEF EXECUTIVE’S STRATEGY REVIEW
Intermediary relationships
Amlin sources most of its business from London market brokers,
which through their international networks provide access to
business from around the world. The brokers know us well and
act as an excellent source of business, so that our underwriters
are focussed on assessing risks in areas where Amlin wants to
underwrite and where we have specialist skills.
Consolidation among brokers over the years has resulted in an
increased reliance on fewer brokers and we expect this trend
to continue. Strategically, and to support our long term growth
ambitions, it is therefore important that Amlin continues to
strengthen its relationships and status as a preferred market.
We will also seek to broaden our relationships where it makes
sense to do so.
Our size, security, underwriting expertise and the considerable
progress we have made operationally over the past few years gives
us an excellent platform on which to build our preferred market
status, by firmly gripping and improving the level of service we
offer brokers and insureds.
The London market has often been criticised for its poor levels of
service in areas such as certainty of contract and claims settlement.
Amlin is determined to do what it can to address this, and we are
engaged with some of our key broker relationships in process
improvement initiatives in the claims and policy production areas.
We have set ourselves stretching internal targets against which we
will benchmark our performance. In achieving our objectives we
intend to use technology to help remove duplicated processes and
extract efficiency gains that will benefit both Amlin and brokers.
It should also allow our brokers and ourselves to deliver greater
efficiency and certainty to insureds. Progress and plans in this
area are discussed further in the Operating and financial review.
Back to top
A non-Lloyd’s business
Over the past two years we have kept under review potential
options for extending our activities beyond Lloyd’s. Lloyd’s now
enjoys a considerably strengthened position in the global insurance
market and we are major supporters of its Franchise regime. In the
long term however, our growth may result in Amlin exceeding
limitations set by Lloyd’s for any one of its franchisees and scale
benefits may outweigh the costs associated with Lloyd’s mutuality.
We have looked and will continue to look for acquisitions which
could help our strategic ambition but we tread cautiously, fully
aware of the pitfalls which have damaged shareholder value for so
many acquirers in our industry, particularly as a result of reserving
deficiencies. Over the next few years however, we expect to generate
significant positive cash flow which will give us the option of
investing surpluses in a new non-Lloyd’s entity.
Conclusion
Amlin’s significant progress over recent years is the result of
an exceptionally strong effort by a team determined to deliver
superior performance and the Group’s strategic objectives.
One of our key strategic objectives is to be ‘the place to work’ in
our marketplace and, over the past three years we have improved
our position significantly, which is reflected in low employee
turnover ratios. We will continue to work on means of truly
satisfying this objective, with a view to sustaining the quality and
motivation of our people. This is critical to our long term success
as we continue to set ourselves stretching targets to benefit all
stakeholders and build long term shareholder value.
With each year’s progress we increase Amlin’s potential and
we look forward with increasing confidence. I would like to
reiterate the message of the Chairman and thank all those
who have contributed, and continue to contribute to our
successful development.
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