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 hardening, in metallurgy, treatment of metals to increase their resistance to penetration. A metal is harder when it has small grains, which result when the metal is cooled rapidly. 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 co·in·cide intr.v. co·in·cid·ed, co·in·cid·ing, co·in·cides 1. To occupy the same relative position or the same area in space. 2. To happen at the same time or during the same period. 3. 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 include property catastrophe Catastrophe, from the Greek Καταστροφή (katastrephein), literally means "to turn" (strephein) "downwards" (kata-). reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. , with price increases of 10% to 15% in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , 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 facultative /fac·ul·ta·tive/ (fak´ul-ta?tiv) not obligatory; pertaining to the ability to adjust to particular circumstances or to assume a particular role. fac·ul·ta·tive adj. 1. 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 An individual who undertakes an obligation to pay a sum of money or to perform some duty or promise for another in the event that person fails to act. surety n. |
|
||||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion