Bermuda Firms’ Strategies In The Spotlight
Two recent Bermuda entrants into the umbrella liability insurance market have two common strategies in their business plans — they’re steering clear of the most competitive middle-market segments and are distinguishing their firms through specialist expertise, reports “National Underwriter” today [Mar. 8].
The reinsurance trade journal said while recent moves by Ironshore and Torus had initially been interpreted by industry analysts as attempts to capitalise on perceived market disruptions in the most capital-intensive high-excess casualty segments, the two Bermuda firms have broader ambitions.
“In addition to targeting the world’s largest insureds from Bermuda with catastrophe-excess coverage, they have each recently set up separate US units vying for very different levels of casualty towers than their Bermuda brethren,” reports the publication. “At Torus, Linc Trimble, a 13-year veteran of Chubb and St. Paul Travelers, took the helm of the US excess casualty division in Jersey City, New Jersey, in March of this year. He said his sights at Torus are set on the smallest buyers of umbrella coverage–SMEs, or ‘small and medium enterprise risks’, as well as niche casualty programmes.
“At Ironshore, Tim McAuliffe came on board as president of US Specialty Casualty in New York after 14 years at American International Group. While his unit will focus on Fortune 1000 and 2000 companies, it will write layers attaching below $100 million, in contrast to Iron-Starr Excess, another Ironshore casualty venture.
“Iron-Starr– a managing general agent [MGA] writing for Ironshore and joint venture partner C.V. Starr — will initially aim for the top of clients’ programmes, with a minimum attachment of $75 million and gross capacity of $75 million, according to Chief Executive Officer Geoff Smith, another AIG veteran.”
Bermuda-based Ironshore — founded by the late Robert Clements — commenced operations in 2007 with $1 billion in private equity capital. The firm and its subsidiaries have offices in Bermuda, Canada, the US and UK and employ more than 350 people around the world.
Torus offers a diversified and growing range of property, casualty and specialty insurance, as well as reinsurance products, to a global client base through its Bermudian, European and US insurance subsidiaries. Launched in 2008, Torus now has over 400 employees in 13 offices worldwide.
Torus Insurance Holdings Limited is the Bermudian holding company of five insurance entities:
- Torus Insurance (UK) Limited, an FSA regulated business
- Torus Specialty and Torus National Insurance Companies in the US
- Torus Insurance (Europe) AG, regulated by the FMA Liechtenstein
- Torus Insurance (Bermuda) Ltd, a Class-4 insurer domiciled in Hamilton
Torus also underwrites business at Lloyd’s through Syndicate 2243.
The full report on Torus and Ironshore can be read at the “National Underwriter” website.
