Catlin To Expand To Switzerland
Bermuda based Catlin Group Limited will form a reinsurance company in Switzerland, saying it will significantly expand the European-based reinsurance business underwritten by the Group. Catlin will also apply to the Bermuda Monetary Authority to establish a Bermuda-based branch of Catlin Re Switzerland. The Bermuda branch will initially underwrite reinsurance of various Catlin Group subsidiaries, business that is currently written by Catlin Insurance Company Ltd. (Catlin Bermuda). This will provide the Group with increased capital flexibility.
Catlin has applied to the Swiss Financial Market Supervisory Authority (FINMA) to establish Catlin Re Switzerland. Subject to regulatory approval, Catlin Re Switzerland will have capital of at least US$1 billion from internal resources and will initially underwrite specialty reinsurance business for which market conditions are favourable. Catlin’s existing Bermuda portfolio of open market insurance and reinsurance will continue to be underwritten by Catlin Bermuda.
Following regulatory approval, which is anticipated in the second half of 2010, Zurich-based Catlin Re Switzerland will commence writing a portfolio of European reinsurance risks that are generally not underwritten by Catlin’s existing underwriting teams. The initial classes of business to be underwritten by Catlin Re Switzerland will include trade credit reinsurance, political risk reinsurance and surety reinsurance.
Stephen Catlin, Chief Executive of Catlin Group Limited, said:
I am happy to announce that Catlin has applied to Swiss regulatory authorities for permission to establish a reinsurance company headquartered in Zurich, which will significantly expand the Catlin Group’s presence in the European marketplace. Our ambition is to build Catlin Re Switzerland over time to become a leading European specialty reinsurer.
“The specialist classes of business to be initially underwritten by Catlin Re Switzerland will expand the portfolio of similar business now written by Catlin by focusing on high-quality European risks at a time when market conditions are favourable for these business classes.
“Catlin Re Switzerland will expand over time to write additional classes of business, in line with Catlin’s successful practice of organically growing international operations by attracting underwriting teams whose values and practices are consistent with Catlin’s.
“The formation of Catlin Re Switzerland will complement existing Catlin-owned insurance carriers in the United Kingdom, Bermuda and the United States and will offer the Group additional capital flexibility.
