Finding Gold in Specialty Lines.Afocus on specialty lines is key to the success of XL Global Insurance Inc., the insurance arm of Bermuda-based XL Capital Ltd., the insurance unit's chief said. Nicholas M. Brown Jr., XL Global's president and chief executive officer, said the company's specialty insurance operations are dovetailing nicely, with a general hardening trend in worldwide commercial property/casualty rates. "For us, in all the markets we are in, we are seeing double-digit price increases," Brown said. "What we've built is fortunately coinciding very well with what's happening in the market." The one exception to that strong price growth is environmental liability. "We are concerned about that, because it is very important to us," he said. Specific areas of price improvement Price Improvement Attaining a higher bid price, if you are selling a stock, or a lower ask price, if you are buying a stock, than the price quoted at the time your order was placed.Notes: You will often read in brokerage marketing pitches that price improvement is an opportunity and not a guarantee. Although most brokerages purport "fighting for that last 1/16" there is no guarantee of this actually happening. include property catastrophe reinsurance, with price increases of 10% to 15% in the United States, and April renewals in Japan averaging 20% to 35%; other property insurance and reinsurance, with increases of 25% or more; excess casualty insurance, up 5% to 8%; casualty treaty insurance, up 20% or more; and casualty facultative insurance, up 25% or more. "The improvements in excess casualty insurance and casualty treaty insurance are especially satisfying, since they are fairly new," Brown said. "Casualty treaty was somewhat reluctant to turn, but it has now" Brown said XL Global is determined to remain a specialty insurer, a strategy that allows the company to leverage its expertise in well-chosen markets. "We want to keep building on where we are," he said. "We like our businesses." He added that XL Global is gearing up a small-commercial effort that will be "technology driven," or Internet based, which he expects to "generate significant revenue" for the company in 2002 or 2003. XL Capital Ltd. A.M. Best #: 86079 Rating: A+ Headquarters: Hamilton, Bermuda Lines of Business: Warranty and programs, risk management, environmental, professional liability, space and aviation, marine and energy, war and political risk and surety |
|
||||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion