Catlin Launches Swiss Subsidiary
Bermuda-based Catlin Group Limited, the international specialty property/casualty insurer and reinsurer, announced today (Dec. 8) that Catlin Re Switzerland Ltd. has received approval from the Swiss Financial Market Supervisory Authority (FINMA) to operate as a reinsurance company.
Catlin Re Switzerland will be capitalised with approximately $1.1 billion. Standard & Poor’s Ratings Services said last month that it expects to assign a long-term financial strength rating of ‘A’ to Catlin Re Switzerland as a core subsidiary of the Catlin Group, subject to capitalisation of the company and receipt of all necessary regulatory approvals.
The company said the formation of Catlin Re Switzerland is a major development in the Catlin Group’s international expansion and distribution strategy. The company will underwrite property and other classes of specialty reinsurance for European ceding companies as well as trade credit surety and political risk reinsurance on a global basis. Catlin Re Switzerland will expand its portfolio of European treaty reinsurance business as market conditions justify, building on the existing book of reinsurance business that has been developed and underwritten by Catlin’s European offices over the past seven years.
Catlin Re Switzerland, based in Zurich, is a subsidiary of Hamilton-heaquartered Catlin Bermuda (Catlin Insurance Company Ltd.). Upon receipt of regulatory approval by the Bermuda Monetary Authority, Catlin Re Switzerland will establish a Bermuda branch, initially to underwrite reinsurance of various Catlin Group subsidiaries.
Peter Schmidt, Chief Executive of Catlin Re Switzerland, said: “I am delighted to announce that Catlin Re Switzerland has received approval from FINMA. The establishment of Catlin Re Switzerland 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. We are pleased that Catlin Re Switzerland can now serve clients for the upcoming 1 January 2011 renewals.”
Catlin Group Ltd. is the latest Bermuda-based re/insurance giant to launch new Swiss subsidiaries in recent months. Others include Endurance Specialty Insurance Ltd., Montpelier Re Holdings Ltd. and Arch Reinsurance Ltd. The trend has sparked debate on whether Bermuda might be losing its appeal as an insurance and reinsurance hub as Switzerland fattens its corporate register with new players looking to expand in Europe.
