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Reinsurance rebournd. (Industry Strategies: Top Reinsurers By Line).

After a period of soft-market conditions and lax underwriting capped by the Sept. 11 disaster and the Enron fallout, reinsurers are finally beginning to see the market turn in their favor

After its worst year ever, the property/casualty reinsurance industry is in correction mode, and, barring any major catastrophes, it seems poised to enter a period of profitability.

In 2001, the World Trade Center attack followed by the failure of energy trader Enron Corp. took its toll on property and liability, primary coverage and reinsurance. The costliest U.S. catastrophe ever came as property/casualty reinsurers were trying to recover from the slippage in the marketplace in the late 1990s, when reinsurers in a soft market were chasing market share, prices were dropping, and terms were very generous.

Lines such as workers' compensation carve-out, workers' comp catastrophe, excess commercial risk and aviation have been hard hit since the terrorist attacks. Insured property losses from the terrorism attacks are estimated at $20.3 billion, reports the Insurance Services Office Inc. The loss estimate represents only property damage and related coverages, such as business-interruption insurance, and it doesn't include liability insurance, workers' comp and aviation losses and life and health insurance, ISO said.

Since Sept. 11, fresh capital has been flowing into the insurance industry in response to tight capacity and rising premiums--two ongoing trends that were intensified by the terrorist attacks on the World Trade Center and the Pentagon. And new companies have been formed in certain market segments--a development that may reflect a drive to benefit from hardening market conditions or an affirmation of long-term confidence in the insurance business.

Reinsurers are "raising prices, tightening terms and conditions, segregating terrorism from core coverage--it's hard to see how it can get any better than that," said William Heckles, chief reinsurance officer of Hartford Steam Boiler Group Inc., a specialty reinsurer. "Reinsurers have found some confidence--they know that they're in the driver's seat at the moment. And when it comes to price and terms, they're more than likely to get what they want, so the pendulum has swung in the other direction."

Tougher Underwriting

Indeed, by June the Reinsurance Association of America had confirmed what the trade press had been reporting for some time--that reinsurers are returning to tougher underwriting. The 30 U.S. reinsurers that participated in the association's first-quarter survey wrote an increase of 15% in net premiums--to $7.68 billion from the $6.68 billion they wrote in the same quarter a year earlier, based on statutory results.

Also, these reinsurers, which represent about 75% of U.S. reinsurance premiums, posted a drop in their total combined ratio to 101.8 from 106.4 for the same quarter in 2001. Combined ratio is the ratio of claims and expenses to premiums earned.

While this group still paid out nearly $1.02 in claims and expenses for every $1 in premium received, it was a vast improvement over year-end 2001, when reinsurers spent $1.42 in claims and expenses for every $1 in premium received.

Joseph B. Sieverling, vice president and director of financial services at RAA, called this a sign of premium increases and the hardening market. The industry, he added, was moving toward underwriting profitability. With investment income not as robust as it had been because of the turbulent equity market, insurers could no longer rely on investment income to make up for unprofitable underwriting, he explained.

In recent months, members of the National Association of Independent Insurers, the property/casualty trade association that represents more than 690 carriers, report that they have been subject to "much more individualized underwriting by reinsurers. They are looking at the risks they are underwriting with more scrutiny," said Mike Koziol, senior director and counsel for the NAII.

Koziol said that while Sept. 11 and the already-hardening market have caused some distortions, reinsurers are responding with market-based solutions.

"The reinsurance marketplace is working--under some strained conditions--but it is working as a free market," Koziol said.

Terrorism

Terrorism coverage is a good example, he noted. While many reinsurers now have excluded this, others have not and are covering terrorism to a limited degree based on the nature of the underlying risk, Koziol said. Bermuda start-up Montpelier Holdings Ltd., for example, is writing a limited amount of terrorism coverage, with dollar limits per loss and a limited amount available in the aggregate.

As before, cedants still like dealing with reinsurers that demonstrate specialized knowledge and financial strength and those they know and trust, said Peter Porrino, global director of Ernst & Young's Insurance Practice. But some ceding companies may have capital issues, because their premium growth is accelerating--something that makes rating agencies nervous--and there is concern about under-reserving in terms of asbestos and other reserves, he said.

"These trends are causing a number of ceding companies to access the reinsurance market and obtain a reasonable level of capacity," Porrino said. "That's really helped some of the bigger players in the reinsurance market, because they do have capacity."

Since Sept. 11, reinsurers have developed a renewed focus on geographic concentration of noncatastrophe potential loss risk, Porrino said. They also are weighing credit-risk aggregation, which is more driven by the Enron scandal than the terrorist attacks, he noted. The Enron collapse produced a wave of aggregating exposures, potentially targeting insurers for liability losses through directors-and-officers, errors-and-omissions, fiduciary liability, and surety insurance policies, as well as an insurer's own investments.

"People are looking at how their risks are aggregating across credit exposures," he said. "And they are looking at industry exposures more than they had in the past. The whole crisis with Enron and the other energy companies brought that to fruition."

Cost of Capital

To Porrino, the biggest change lately in the reinsurance market has been the cost of capital, with reinsurance companies beginning to seek returns on their capital more in a capital-markets sense than they had before. Rate increases in the primary market and the reinsurance market occurred not only because of the additional risk or the need to replenish profits, but also because of a more conscious effort to obtain "a decent return on the cost of capital," Porrino said.

"With contracts that had very limited risk, companies were still looking to get a minimum return on their capital," he said. "So deals that were priced very thinly because there was little risk, changed pretty dramatically right away."

Following the terrorist attacks, the industry clearly demonstrated a drive for profitability over growth, Porrino said. But this tendency had been building earlier as a result of reserving problems with asbestos, as well as the poor performance of the capital markets. "All of those things seemed to come together and drive the prices to where they are going today," Porrino said.

Buyers may not like current market conditions, but at least the business is more organized now than it was in the chaotic weeks following the World Trade Center collapse, Heckles pointed out. Cedents have to feel more comfortable if they understand at least where the reinsurers are coming from these days, he said. "It was so difficult to get their attention on the phone" immediately after Sept. 11, Heckles said. "I don't think they knew what they wanted to do in the late fall."

Focus on Bermuda

Before long, the reinsurance market saw a dramatic development: the obvious transfer of importance from London to Bermuda as at least nine startups surfaced in Bermuda to fill the capacity shortfall. The new companies, which include Axis Specialty, formed by Marsh & McLennan's private-equity subsidiary, MMC Capital, and DaVinci Reinsurance, started by Renaissance Re Holdings Ltd., have more than $10 billion in capital.

"Let's make no mistake--the new Bermuda start-ups are backed by smart money and have smart people running those businesses, so you don't expect them to do a number of silly things," Porrino said. "At the same time, I do think there will be some pressure to produce revenues commensurate with the amount of capital that they have."

All in all, the capital shortage envisioned for the reinsurance industry wasn't as extreme as expected, he said. That is partly a result of capital flowing readily back into the marketplace.

In May, for example, Wellington Underwriting plc, a major managing agency at Lloyd's, said it had raised [pounds sterling]448 million (about $659 million) of capital to launch a new reinsurance company outside of Lloyd's that will be one of the largest stand-alone reinsurers in the London market.

Wellington Re was expected to begin operations by the end of June, said Candover Investments plc, one of the new venture's backers. It will focus on property/casualty reinsurance and U.K. commercial insurance, taking advantage of rising rates and a favorable underwriting environment, Candover said. The reinsurer expects to write net premiums of about [pounds sterling]200 million in 2002.

Wellington also announced that U.S.-based Berkshire Hathaway Inc. would invest to increase Wellington's managed underwriting capacity at Lloyd's to [pounds sterling]963 million from [pounds sterling]625 million. The plan was approved by capital providers on Wellington's syndicate 2020 and by Lloyd's.

The top five global reinsurers by gross premiums written, according to A.M. Best Co.'s 2000 rankings, were Munich Re, Swiss Re, GE Global Insurance Holdings, Berkshire Hathaway and Hannover Re.

Changing Capacity

But Robert Hammesfahr, a member of law firm Cozen O'Connor, thinks that Sept. 11 is already having a big impact on market share.

"It will be interesting to compare the market position of each reinsurer pre-World Trade Center and post-World Trade Center plus one year," he said. "Already, we have seen some reinsurance companies withdraw from the marketplace."

In February, for example, Bermuda-based Overseas Partners said it would sell its U.S. operations and put most of the rest of the company into runoff. The move means that Renaissance Re has lost a partner that provided it with $400 million of capital to write additional business. Now Renaissance Re will have to write business at a lower level of capital in the near term, according to a Morgan Stanley report released Feb. 13. Overseas Partners was originally created as a captive for the United Parcel Service in 1983.

Porrino thinks that on an accident year basis, the prospects look good for reinsurers in 2002 and even better in 2003.

But the calendar year is more problematic, he noted, with the asbestos deterioration as well as fairly significant under-reserving as a result of inadequate pricing in the late '90s. "I don't think you're going to see many mid-teen [returns on equity] in the insurance industry in 2002, but you're more likely to see that in 2003," Porrino said. Rates will continue to rise--perhaps not at the pace they've gone up over the past 12 to 18 months, but they won't be flattening out right away, he said.

More of the Same

Heckles said he thinks reinsurers will maintain their newfound tipper hand for some time because of the major contraction in the market in quality and security. "There are companies out there that have problems--they're just not quite out in the open yet," he said. "I think probably some companies are going to have to pull back and reduce the size of the lines they put out."

Considering the amount of change this market has seen over a short period of time, there's bound to be more shake-out through the rest of 2002, Heckles said. "And when we come around to the [Jan. 1, 2003] renewals, I don't anticipate the market will yet be back to normal--whatever normal is."
Homeowners Reinsurance Assumed, Top Writers--2001

Rank is based on homeowners reinsurance assumed for 2001.

 Unaffiliated
 Homeowners
Rank Company Name AMB # Assumed

 1 American Agricultural Insurance Co 03133 $119,436,070
 2 Transatlantic Reinsurance Co 03126 65,683,920
 3 Gerling Global Re Corp of America 03046 53,208,296
 4 Swiss Reinsurance America Corp 03263 53,075,558
 5 Converium Reinsurance (NA) 02696 44,578,675
 6 Odyssey America Reinsurance Corp 00539 43,403,992
 7 GE Reinsurance Corp 04124 39,403,681
 8 Axa Corporate Solutions Re Co 03811 37,104,314
 9 Everest Reinsurance Co 03519 36,790,508
10 Scor Reinsurance Co 03599 27,646,483
11 Employers Reinsurance Corp 00347 26,298,681
12 PXRE Reinsurance Co 02797 21,433,219
13 General Reinsurance Corp 02198 17,054,222
14 Partner Reinsurance Co of US 02671 16,820,277
15 American Re-Insurance Co 00149 11,237,588
16 PMA Capital Insurance Co 02707 10,447,000
17 Dorinco Reinsurance Co 03771 7,883,371
18 QBE Reinsurance Corp 04069 4,326,963
19 XL Reinsurance America Inc 02104 3,762,626
20 General Security National Insurance 02665 2,385,008
21 Insurance Corp of Hannover 02643 2,294,822
22 Toa Reinsurance Co of America 01730 1,662,882
23 Trenwick America Reinsurance Corp 03747 511,061
24 Sirius America Insurance Co 03758 244,088
25 PartnerRe Insurance Co of NY 03025 141,369
 Total U.S. P/C Industry $1,558,769,527

 Unaffiliated
 Total All
Rank Company Name Lines Assumed

 1 American Agricultural Insurance Co $582,190,821
 2 Transatlantic Reinsurance Co 1,917,828,255
 3 Gerling Global Re Corp of America 880,758,542
 4 Swiss Reinsurance America Corp 2,632,627,143
 5 Converium Reinsurance (NA) 994,307,293
 6 Odyssey America Reinsurance Corp 883,809,047
 7 GE Reinsurance Corp 1,182,640,325
 8 Axa Corporate Solutions Re Co 415,476,181
 9 Everest Reinsurance Co 1,431,455,008
10 Scor Reinsurance Co 625,912,482
11 Employers Reinsurance Corp 2,402,857,781
12 PXRE Reinsurance Co 276,089,259
13 General Reinsurance Corp 3,534,061,951
14 Partner Reinsurance Co of US 466,791,068
15 American Re-Insurance Co 3,713,643,297
16 PMA Capital Insurance Co 475,595,137
17 Dorinco Reinsurance Co 227,125,679
18 QBE Reinsurance Corp 197,010,153
19 XL Reinsurance America Inc 678,795,691
20 General Security National Insurance 142,989,130
21 Insurance Corp of Hannover 355,566,297
22 Toa Reinsurance Co of America 236,918,425
23 Trenwick America Reinsurance Corp 303,396,802
24 Sirius America Insurance Co 3,554,741
25 PartnerRe Insurance Co of NY 53,788,805
 Total U.S. P/C Industry $45,674,671,091

 % Homeowners
 Assumed to All
Rank Company Name Lines Assumed

 1 American Agricultural Insurance Co 20.5
 2 Transatlantic Reinsurance Co 3.4
 3 Gerling Global Re Corp of America 6.0
 4 Swiss Reinsurance America Corp 2.0
 5 Converium Reinsurance (NA) 4.5
 6 Odyssey America Reinsurance Corp 4.9
 7 GE Reinsurance Corp 3.3
 8 Axa Corporate Solutions Re Co 8.9
 9 Everest Reinsurance Co 2.6
10 Scor Reinsurance Co 4.4
11 Employers Reinsurance Corp 1.1
12 PXRE Reinsurance Co 7.8
13 General Reinsurance Corp 0.5
14 Partner Reinsurance Co of US 3.6
15 American Re-Insurance Co 0.3
16 PMA Capital Insurance Co 2.2
17 Dorinco Reinsurance Co 3.5
18 QBE Reinsurance Corp 2.2
19 XL Reinsurance America Inc 0.6
20 General Security National Insurance 1.7
21 Insurance Corp of Hannover 0.7
22 Toa Reinsurance Co of America 0.7
23 Trenwick America Reinsurance Corp 0.2
24 Sirius America Insurance Co 6.9
25 PartnerRe Insurance Co of NY 0.3
 Total U.S. P/C Industry 3.4

Source: A.M. Best Co. data, as of June 18, 2002. For custom data, please
call (908) 439-2200, ext. 5383.
Homeowners Reinsurance Ceded, Top Writers--2001

Rank is based on homeowners reinsurance ceded for 2001.




Rank Company Name AMB #

 1 Glens Falls Insurance Co 02121
 2 Continental Insurance Co 02118
 3 Clarendon National Insurance Co 01975
 4 Fire Insurance Exchange 02172
 5 Nationwide Mutual Insurance Co 02358
 6 State Farm Florida Insurance Co 12235
 7 North Carolina Farm Bureau Mutual 00708
 8 OneBeacon Insurance Co 02196
 9 Clarendon Select Insurance Co 10827
10 United Services Auto Association 00934
11 United States Fidelity & Guarantee Co 02539
12 Cotton States Mutual Insurance Co 00299
13 St Paul Fire & Marine Insurance Co 02452
14 Hartford Fire Insurance Co 02231
15 Liberty Mutual Insurance Co 02283
16 American Bankers Insurance Co of Fla 00120
17 New York Central Mutual Fire 00700
18 Regency Insurance Co 10600
19 QualSure Insurance Corp 12379
20 Allstate Floridian Insurance Co 10648
21 Continental Lloyd's Insurance Co 10662
22 Federal Insurance Co 02084
23 Consolidated Lloyds 02560
24 Peerless Insurance Co 02394
25 Vanguard Fire & Casualty Co 12253
 Total U.S. P/C Industry

 Total
 Homeowners
 Direct Premiums
Rank Company Name Written

 1 Glens Falls Insurance Co $211,869,314
 2 Continental Insurance Co 117,099,346
 3 Clarendon National Insurance Co 180,178,750
 4 Fire Insurance Exchange 1,246,232,685
 5 Nationwide Mutual Insurance Co 78,054,736
 6 State Farm Florida Insurance Co 650,452,856
 7 North Carolina Farm Bureau Mutual 115,437,489
 8 OneBeacon Insurance Co 8,336,938
 9 Clarendon Select Insurance Co 120,593,764
10 United Services Auto Association 907,695,625
11 United States Fidelity & Guarantee Co 12,680,826
12 Cotton States Mutual Insurance Co 61,803,691
13 St Paul Fire & Marine Insurance Co 1,150,229
14 Hartford Fire Insurance Co 45,256,754
15 Liberty Mutual Insurance Co 24,298,450
16 American Bankers Insurance Co of Fla 84,516,133
17 New York Central Mutual Fire 100,569,412
18 Regency Insurance Co 42,289,168
19 QualSure Insurance Corp 38,174,014
20 Allstate Floridian Insurance Co 324,927,746
21 Continental Lloyd's Insurance Co 31,223,681
22 Federal Insurance Co 214,215,135
23 Consolidated Lloyds 30,293,732
24 Peerless Insurance Co 59,753,456
25 Vanguard Fire & Casualty Co 31,775,361
 Total U.S. P/C Industry $37,529,511,402

 Unaffiliated

 Homeowners
Rank Company Name Ceded

 1 Glens Falls Insurance Co $211,851,766
 2 Continental Insurance Co 147,653,637
 3 Clarendon National Insurance Co 125,307,355
 4 Fire Insurance Exchange 107,386,266
 5 Nationwide Mutual Insurance Co 102,081,350
 6 State Farm Florida Insurance Co 93,525,238
 7 North Carolina Farm Bureau Mutual 84,029,220
 8 OneBeacon Insurance Co 78,942,409
 9 Clarendon Select Insurance Co 70,798,328
10 United Services Auto Association 60,894,513
11 United States Fidelity & Guarantee Co 57,826,297
12 Cotton States Mutual Insurance Co 52,706,320
13 St Paul Fire & Marine Insurance Co 51,421,020
14 Hartford Fire Insurance Co 48,609,393
15 Liberty Mutual Insurance Co 48,506,322
16 American Bankers Insurance Co of Fla 44,048,719
17 New York Central Mutual Fire 37,679,498
18 Regency Insurance Co 34,361,167
19 QualSure Insurance Corp 32,984,307
20 Allstate Floridian Insurance Co 31,646,026
21 Continental Lloyd's Insurance Co 31,222,335
22 Federal Insurance Co 30,456,328
23 Consolidated Lloyds 30,293,732
24 Peerless Insurance Co 28,340,325
25 Vanguard Fire & Casualty Co 27,433,640
 Total U.S. P/C Industry $3,644,137,421

 Unaffiliated

 Total All
Rank Company Name Lines Ceded

 1 Glens Falls Insurance Co $742,295,865
 2 Continental Insurance Co 749,321,046
 3 Clarendon National Insurance Co 1,223,533,405
 4 Fire Insurance Exchange 171,690,997
 5 Nationwide Mutual Insurance Co 339,753,201
 6 State Farm Florida Insurance Co 103,960,971
 7 North Carolina Farm Bureau Mutual 181,803,104
 8 OneBeacon Insurance Co 304,097,040
 9 Clarendon Select Insurance Co 72,149,097
10 United Services Auto Association 113,764,548
11 United States Fidelity & Guarantee Co 302,124,817
12 Cotton States Mutual Insurance Co 110,922,444
13 St Paul Fire & Marine Insurance Co 1,065,543,518
14 Hartford Fire Insurance Co 1,733,139,628
15 Liberty Mutual Insurance Co 1,527,877,405
16 American Bankers Insurance Co of Fla 871,012,762
17 New York Central Mutual Fire 154,498,722
18 Regency Insurance Co 36,613,456
19 QualSure Insurance Corp 42,080,152
20 Allstate Floridian Insurance Co 33,526,198
21 Continental Lloyd's Insurance Co 33,436,996
22 Federal Insurance Co 708,539,586
23 Consolidated Lloyds 32,544,630
24 Peerless Insurance Co 171,196,200
25 Vanguard Fire & Casualty Co 28,722,113
 Total U.S. P/C Industry $68,036,230,718


 % Homeowners
 Ceded to All
Rank Company Name Lines Ceded

 1 Glens Falls Insurance Co 28.5
 2 Continental Insurance Co 19.7
 3 Clarendon National Insurance Co 10.2
 4 Fire Insurance Exchange 62.6
 5 Nationwide Mutual Insurance Co 30.1
 6 State Farm Florida Insurance Co 90.0
 7 North Carolina Farm Bureau Mutual 46.2
 8 OneBeacon Insurance Co 26.0
 9 Clarendon Select Insurance Co 98.1
10 United Services Auto Association 53.5
11 United States Fidelity & Guarantee Co 19.1
12 Cotton States Mutual Insurance Co 47.5
13 St Paul Fire & Marine Insurance Co 4.8
14 Hartford Fire Insurance Co 2.8
15 Liberty Mutual Insurance Co 3.2
16 American Bankers Insurance Co of Fla 5.1
17 New York Central Mutual Fire 24.4
18 Regency Insurance Co 93.9
19 QualSure Insurance Corp 78.4
20 Allstate Floridian Insurance Co 94.4
21 Continental Lloyd's Insurance Co 93.4
22 Federal Insurance Co 4.3
23 Consolidated Lloyds 93.1
24 Peerless Insurance Co 16.6
25 Vanguard Fire & Casualty Co 95.5
 Total U.S. P/C Industry 5.4

Source: A.M. Best Co. data, as of June 18, 2002. For custom data, please
call (908) 439-2200, ext. 5383.
Medical Malpractice Reinsurance Assumed, Top Writers--2001

Rank is based on medical malpractice reinsurance assumed for 2001.

 Unaffiliated
 Medical
 Malpractice
Rank Company Name AMB # Assumed

 1 Transatlantic Reinsurance Co 03126 $97,618,844
 2 Swiss Reinsurance America Corp 03263 30,556,025
 3 Gerling Global Re Corp of America 03046 29,441,512
 4 American Re-Insurance Co 00149 17,615,036
 5 GE Reinsurance Corp 04124 14,707,361
 6 XL Reinsurance America Inc 02104 8,704,424
 7 Converium Reinsurance (NA) 02696 7,428,905
 8 Employers Reinsurance Corp 00347 6,194,950
 9 PMA Capital Insurance Co 02707 2,672,964
10 Odyssey America Reinsurance Corp 00539 2,455,355
11 General Reinsurance Corp 02198 1,994,232
12 Trenwick America Reinsurance Corp 03747 1,704,654
13 Toa Reinsurance Co of America 01730 1,579,576
14 Everest Reinsurance Co 03519 1,223,514
15 Chartwell Insurance Co 02567 176,889
 Total U.S. P/C Industry $403,838,670

 Unaffiliated

 Total All
Rank Company Name Lines Assumed

 1 Transatlantic Reinsurance Co $1,917,828,255
 2 Swiss Reinsurance America Corp 2,632,627,143
 3 Gerling Global Re Corp of America 880,758,542
 4 American Re-Insurance Co 3,713,643,297
 5 GE Reinsurance Corp 1,182,640,325
 6 XL Reinsurance America Inc 678,795,691
 7 Converium Reinsurance (NA) 994,307,293
 8 Employers Reinsurance Corp 2,402,857,781
 9 PMA Capital Insurance Co 475,595,137
10 Odyssey America Reinsurance Corp 883,809,047
11 General Reinsurance Corp 3,534,061,951
12 Trenwick America Reinsurance Corp 303,396,802
13 Toa Reinsurance Co of America 236,918,425
14 Everest Reinsurance Co 1,431,455,008
15 Chartwell Insurance Co 34,574,441
 Total U.S. P/C Industry $45,674,671,091


 % Med Mal
 Assumed to Total
Rank Company Name All Lines Assumed

 1 Transatlantic Reinsurance Co 5.1
 2 Swiss Reinsurance America Corp 1.2
 3 Gerling Global Re Corp of America 3.3
 4 American Re-Insurance Co 0.5
 5 GE Reinsurance Corp 1.2
 6 XL Reinsurance America Inc 1.3
 7 Converium Reinsurance (NA) 0.8
 8 Employers Reinsurance Corp 0.3
 9 PMA Capital Insurance Co 0.6
10 Odyssey America Reinsurance Corp 0.3
11 General Reinsurance Corp 0.1
12 Trenwick America Reinsurance Corp 0.6
13 Toa Reinsurance Co of America 0.7
14 Everest Reinsurance Co 0.1
15 Chartwell Insurance Co 0.5
 Total U.S. P/C Industry 0.9

Source: A.M. Best Co. data, as of June 18, 2002. For custom data, please
call (908) 439-2200, ext. 5383.
Medical Malpractice Reinsurance Ceded, Top Writers--2001

Rank is based on medical malpractice reinsurance coded for 2001.




Rank Company Name AMB #

 1 Continental Casualty Co 02128
 2 First Professionals Insurance Inc 03743
 3 Miix Insurance Co 03737
 4 Reciprocal of America 03776
 5 Physicians Reciprocal Insurers 02888
 6 Medical Assurance Co Inc 03826
 7 Lexington Insurance Co 02350
 8 TIG Insurance Co 02507
 9 St Paul Fire & Marine Insurance Co 02452
10 Doctors Insurance Reciprocal RRG 11111
11 Clarendon National Insurance Co 01975
12 Fireman's Fund Insurance Co 02179
13 ISMIE Mutual Insurance Co 03757
14 Travelers Indemnity Co 02520
15 Health Care Indemnity Inc 03701
16 Zurich American Insurance Co 02563
17 Truck Insurance Exchange 02174
18 Doctors Company Interinsurance Exchange 03686
19 Legion Insurace Co 02352
20 State Volunteer Mutual Insurance Co 03706
21 Clarendon America Insurance Co 01845
22 Medical Professional Mutual Insurance 11673
23 American PhysiciansAssurance Corp 03670
24 Reciprocal Alliance (RRG) 11797
25 Steadfast Insurance Co 03557
 Total U.S. P/C Industry


 Total Medical
 Malpractice Direct
Rank Company Name Premiums Written

 1 Continental Casualty Co $140,194,788
 2 First Professionals Insurance Inc 162,092,282
 3 Miix Insurance Co 180,633,235
 4 Reciprocal of America 67,967,424
 5 Physicians Reciprocal Insurers 170,504,743
 6 Medical Assurance Co Inc 165,823,436
 7 Lexington Insurance Co 170,360,923
 8 TIG Insurance Co 72,901,885
 9 St Paul Fire & Marine Insurance Co 414,056,775
10 Doctors Insurance Reciprocal RRG 46,034,629
11 Clarendon National Insurance Co 43,644,396
12 Fireman's Fund Insurance Co 45,928,823
13 ISMIE Mutual Insurance Co 207,794,662
14 Travelers Indemnity Co 72,715
15 Health Care Indemnity Inc 287,695,944
16 Zurich American Insurance Co 63,624,466
17 Truck Insurance Exchange 165,121,458
18 Doctors Company Interinsurance Exchange 237,716,302
19 Legion Insurace Co 30,577,157
20 State Volunteer Mutual Insurance Co 120,236,060
21 Clarendon America Insurance Co 21,216,224
22 Medical Professional Mutual Insurance 101,143,642
23 American PhysiciansAssurance Corp 129,349,210
24 Reciprocal Alliance (RRG) 20,807,050
25 Steadfast Insurance Co 74,969,424
 Total U.S. P/C Industry $7,331,099,329

 Unaffiliated
 Medical
 Malpractice
Rank Company Name Ceded

 1 Continental Casualty Co $137,609,897
 2 First Professionals Insurance Inc 71,987,090
 3 Miix Insurance Co 67,131,136
 4 Reciprocal of America 67,119,184
 5 Physicians Reciprocal Insurers 55,973,905
 6 Medical Assurance Co Inc 54,287,021
 7 Lexington Insurance Co 52,618,135
 8 TIG Insurance Co 47,189,325
 9 St Paul Fire & Marine Insurance Co 45,892,294
10 Doctors Insurance Reciprocal RRG 44,578,797
11 Clarendon National Insurance Co 41,357,169
12 Fireman's Fund Insurance Co 33,925,760
13 ISMIE Mutual Insurance Co 33,367,312
14 Travelers Indemnity Co 31,913,621
15 Health Care Indemnity Inc 28,063,228
16 Zurich American Insurance Co 26,996,906
17 Truck Insurance Exchange 26,427,065
18 Doctors Company Interinsurance Exchange 26,339,232
19 Legion Insurace Co 25,986,732
20 State Volunteer Mutual Insurance Co 25,841,557
21 Clarendon America Insurance Co 21,216,016
22 Medical Professional Mutual Insurance 20,808,865
23 American PhysiciansAssurance Corp 20,233,225
24 Reciprocal Alliance (RRG) 19,900,088
25 Steadfast Insurance Co 19,778,729
 Total U.S. P/C Industry $1,568,019,539

 Unaffiliated

 Total All
Rank Company Name Lines Ceded

 1 Continental Casualty Co $3,709,805,373
 2 First Professionals Insurance Inc 73,238,117
 3 Miix Insurance Co 67,131,136
 4 Reciprocal of America 107,466,891
 5 Physicians Reciprocal Insurers 56,029,846
 6 Medical Assurance Co Inc 67,528,537
 7 Lexington Insurance Co 698,787,237
 8 TIG Insurance Co 386,072,714
 9 St Paul Fire & Marine Insurance Co 1,065,543,518
10 Doctors Insurance Reciprocal RRG 44,597,380
11 Clarendon National Insurance Co 1,223,533,405
12 Fireman's Fund Insurance Co 618,317,284
13 ISMIE Mutual Insurance Co 33,517,334
14 Travelers Indemnity Co 1,397,139,343
15 Health Care Indemnity Inc 28,063,228
16 Zurich American Insurance Co 1,380,741,850
17 Truck Insurance Exchange 91,056,758
18 Doctors Company Interinsurance Exchange 33,218,418
19 Legion Insurace Co 840,482,476
20 State Volunteer Mutual Insurance Co 25,841,557
21 Clarendon America Insurance Co 157,837,352
22 Medical Professional Mutual Insurance 21,378,411
23 American PhysiciansAssurance Corp 24,847,703
24 Reciprocal Alliance (RRG) 29,640,373
25 Steadfast Insurance Co 244,689,939
 Total U.S. P/C Industry $68,036,230,718


 % Med Mal
 Ceded to Total
Rank Company Name All Lines Ceded

 1 Continental Casualty Co 3.7
 2 First Professionals Insurance Inc 98.3
 3 Miix Insurance Co 100.0
 4 Reciprocal of America 62.5
 5 Physicians Reciprocal Insurers 99.9
 6 Medical Assurance Co Inc 80.4
 7 Lexington Insurance Co 7.5
 8 TIG Insurance Co 12.2
 9 St Paul Fire & Marine Insurance Co 4.3
10 Doctors Insurance Reciprocal RRG 100.0
11 Clarendon National Insurance Co 3.4
12 Fireman's Fund Insurance Co 5.5
13 ISMIE Mutual Insurance Co 99.6
14 Travelers Indemnity Co 2.3
15 Health Care Indemnity Inc 100.0
16 Zurich American Insurance Co 2.0
17 Truck Insurance Exchange 29.0
18 Doctors Company Interinsurance Exchange 79.3
19 Legion Insurace Co 3.1
20 State Volunteer Mutual Insurance Co 100.0
21 Clarendon America Insurance Co 13.4
22 Medical Professional Mutual Insurance 97.3
23 American PhysiciansAssurance Corp 81.4
24 Reciprocal Alliance (RRG) 67.1
25 Steadfast Insurance Co 8.1
 Total U.S. P/C Industry 2.3

Source: A.M. Best Co. data, as of June 18, 2002. For custom data, please
call (908) 439-2200, ext. 5383.
Workers' Compensation Reinsurance Assumed, Top Writers--2001

Rank is based on workers' compensation reinsurance assumed for 2001.

 Unfiliated
 Workers' Comp
Rank Company Name AMB # Assumed

 1 Employers Reinsurance Corp 00347 S406,607,365
 2 Converium Reinsurance (NA) 02696 233,988,075
 3 American Re-Insurance Co 00149 151,355,971
 4 Everest Reinsurance Co 03519 106,786,000
 5 GE Reinsurance Corp 04124 76,332,693
 6 Commercial Risk Re-Insurance 11378 75,152,279
 7 Gerling Global Re Corp of America 03046 65,667,130
 8 Berkley Insurance Co 03530 53,999,239
 9 Swiss Reinsurance America Corp 03263 51,963,375
10 General Reinsurance Corp 02198 47,417,304
11 Scor Reinsurance Co 03599 38,776,209
12 PMA Capital Insurance Co 02707 35,432,179
13 Insurance Corp of Hannover 02643 35,088,957
14 Transatlantic Reinsurance Co 03126 30,249,749
15 XL Reinsurance America Inc 02104 28,347,755
16 General Security National Insurance 02665 16,269,057
17 Odyssey America Reinsurance Corp 00539 15,293,678
18 Trenwick America Reinsurance Corp 03747 8,411,170
19 Axa Corporate Solutions Re Co 03811 8,295,196
20 Chartwell Insurance Co 02567 8,213,648
21 Partner Reinsurance Co of US 02671 3,365,134
22 PXRE Reinsurance Co 02797 3,276,748
23 Dorinco Reinsurance Co 03771 2,183,687
24 Odyssey Reinsurance Corp 03083 1,183,658
25 PartnerRe Insurance Co of NY 03025 598,631
 Total U.S. P/C Industry $2,543,572,0291

 Unfiliated
 Total All
Rank Company Name Lines Assumed

 1 Employers Reinsurance Corp $2,402,857,781
 2 Converium Reinsurance (NA) 994,307,293
 3 American Re-Insurance Co 3,713,643,297
 4 Everest Reinsurance Co 1,431,455,008
 5 GE Reinsurance Corp 1,182,640,325
 6 Commercial Risk Re-Insurance 103,939,683
 7 Gerling Global Re Corp of America 880,758,542
 8 Berkley Insurance Co 331,321,407
 9 Swiss Reinsurance America Corp 2,632,627,143
10 General Reinsurance Corp 3,534,061,951
11 Scor Reinsurance Co 625,912,482
12 PMA Capital Insurance Co 475,595,137
13 Insurance Corp of Hannover 355,566,297
14 Transatlantic Reinsurance Co 1,917,828,255
15 XL Reinsurance America Inc 678,795,691
16 General Security National Insurance 142,989,130
17 Odyssey America Reinsurance Corp 883,809,047
18 Trenwick America Reinsurance Corp 303,396,802
19 Axa Corporate Solutions Re Co 415,476,181
20 Chartwell Insurance Co 34,574,441
21 Partner Reinsurance Co of US 466,791,068
22 PXRE Reinsurance Co 276,089,259
23 Dorinco Reinsurance Co 227,125,679
24 Odyssey Reinsurance Corp 38,466,372
25 PartnerRe Insurance Co of NY 53,788,805
 Total U.S. P/C Industry $45,674,671,091

 % Workers' Comp
 Assumed to Total
Rank Company Name All lines Assumed

 1 Employers Reinsurance Corp 16.9
 2 Converium Reinsurance (NA) 23.5
 3 American Re-Insurance Co 4.1
 4 Everest Reinsurance Co 7.5
 5 GE Reinsurance Corp 6.5
 6 Commercial Risk Re-Insurance 72.3
 7 Gerling Global Re Corp of America 7.5
 8 Berkley Insurance Co 16.3
 9 Swiss Reinsurance America Corp 2.0
10 General Reinsurance Corp 1.3
11 Scor Reinsurance Co 6.2
12 PMA Capital Insurance Co 7.5
13 Insurance Corp of Hannover 9.9
14 Transatlantic Reinsurance Co 1.6
15 XL Reinsurance America Inc 4.2
16 General Security National Insurance 11.4
17 Odyssey America Reinsurance Corp 1.7
18 Trenwick America Reinsurance Corp 2.8
19 Axa Corporate Solutions Re Co 2.0
20 Chartwell Insurance Co 23.8
21 Partner Reinsurance Co of US 0.7
22 PXRE Reinsurance Co 1.2
23 Dorinco Reinsurance Co 1.0
24 Odyssey Reinsurance Corp 3.1
25 PartnerRe Insurance Co of NY 1.1
 Total U.S. P/C Industry 5.6

Source: A.M. Best Co. data, as of June 18, 2002. For custom data, please
call (908) 439-2200, ext. 5383.
Workers' Compensation Reinsurance Ceded, Top Writers--2001

Rank is based on workers' comp reinsurance ceded for 2001



Rank Company Name AMB #

 1 Liberty Mutual Insurance Co 02283
 2 Continental Casualty Co 02128
 3 Lumbermens Mutual Casualty Co 02279
 4 Legion Insurance Co 02352
 5 Travelers Indemnity Co 02520
 6 Clarendon National Insurance Co 01975
 7 Ace Property & Casualty Insurance Co 01996
 8 Royal Indemnity Co 02438
 9 Combined Specialty Insurance Co 02314
10 Zurich American Insurance Co 02563
11 Security Insurance Co of Hartford 02457
12 Discover Reinsurance Co 11220
13 American Zurich Insurance Co 02743
14 National Union Fire Insurance Co PA 02351
15 Associated Industries Insurance Co 11693
16 American Home Assurance Co 02034
17 Fireman's Fund Insurance Co 02179
18 Hartford Fire Insurance Co 02231
19 TIG Insurance Co 02507
20 Great American Insurance Co 02213
21 Harbor Specialty Insurance Co 11783
22 Old Republic Insurance Co 00733
23 Louisiana Workers' Comp Corp 11339
24 Atlantic Mutual Insurance Co 02063
25 Amcomp Preferred Insurance Co 11826
 Total U.S. P/C Industry

 Total Workers'
 Comp Direct
Rank Company Name Premiums Written

 1 Liberty Mutual Insurance Co S403,378,078
 2 Continental Casualty Co 274,047,639
 3 Lumbermens Mutual Casualty Co 439,277,810
 4 Legion Insurance Co 591,301,655
 5 Travelers Indemnity Co 204,737,661
 6 Clarendon National Insurance Co 334,373,838
 7 Ace Property & Casualty Insurance Co 2,218,139
 8 Royal Indemnity Co 203,422,309
 9 Combined Specialty Insurance Co 289,141,616
10 Zurich American Insurance Co 705,854,995
11 Security Insurance Co of Hartford 209,339,106
12 Discover Reinsurance Co 0
13 American Zurich Insurance Co 224,931,737
14 National Union Fire Insurance Co PA 194,049,267
15 Associated Industries Insurance Co 163.997,458
16 American Home Assurance Co 575,915,270
17 Fireman's Fund Insurance Co 142,712,476
18 Hartford Fire Insurance Co 154,362,059
19 TIG Insurance Co 166,326,475
20 Great American Insurance Co 27,083,499
21 Harbor Specialty Insurance Co 81,850,658
22 Old Republic Insurance Co 144,386,172
23 Louisiana Workers' Comp Corp 186,491,197
24 Atlantic Mutual Insurance Co 154,203,287
25 Amcomp Preferred Insurance Co 100,392,894
 Total U.S. P/C Industry $37,073,665,901

 Unaffiliated
 Workers'
Rank Company Name Comp Ceded

 1 Liberty Mutual Insurance Co $696,703,728
 2 Continental Casualty Co 599,035,183
 3 Lumbermens Mutual Casualty Co 593,723,823
 4 Legion Insurance Co 372,409,075
 5 Travelers Indemnity Co 352,246,190
 6 Clarendon National Insurance Co 328,327,866
 7 Ace Property & Casualty Insurance Co 327,934,768
 8 Royal Indemnity Co 313,248,210
 9 Combined Specialty Insurance Co 283,474,147
10 Zurich American Insurance Co 243,220,360
11 Security Insurance Co of Hartford 210,486,593
12 Discover Reinsurance Co 153,231,931
13 American Zurich Insurance Co 120,867,693
14 National Union Fire Insurance Co PA 105,006,508
15 Associated Industries Insurance Co 99,628,571
16 American Home Assurance Co 99,602,341
17 Fireman's Fund Insurance Co 95,464,338
18 Hartford Fire Insurance Co 94,428,466
19 TIG Insurance Co 87,245,115
20 Great American Insurance Co 79,569,750
21 Harbor Specialty Insurance Co 79,421,460
22 Old Republic Insurance Co 74,272,235
23 Louisiana Workers' Comp Corp 69,438,336
24 Atlantic Mutual Insurance Co 67,259,568
25 Amcomp Preferred Insurance Co 58,202,751
 Total U.S. P/C Industry $7,835,985,727

 Unaffiliated
 Total All
Rank Company Name Lines Ceded

 1 Liberty Mutual Insurance Co $1,527,877,405
 2 Continental Casualty Co 3,709,805,373
 3 Lumbermens Mutual Casualty Co 2,310,565,882
 4 Legion Insurance Co 840,482,476
 5 Travelers Indemnity Co 1,397,139,343
 6 Clarendon National Insurance Co 1,223,533,405
 7 Ace Property & Casualty Insurance Co 1,607,747,494
 8 Royal Indemnity Co 1,066,827,388
 9 Combined Specialty Insurance Co 562,733,110
10 Zurich American Insurance Co 1,380,741,850
11 Security Insurance Co of Hartford 383,200,036
12 Discover Reinsurance Co 557,578,643
13 American Zurich Insurance Co 175,322,509
14 National Union Fire Insurance Co PA 1,747,042,240
15 Associated Industries Insurance Co 99,628,571
16 American Home Assurance Co 1,659,961,291
17 Fireman's Fund Insurance Co 618,317,284
18 Hartford Fire Insurance Co 1,733,139,628
19 TIG Insurance Co 386,072,714
20 Great American Insurance Co 771,924,961
21 Harbor Specialty Insurance Co 111,650,068
22 Old Republic Insurance Co 248,219,693
23 Louisiana Workers' Comp Corp 69,438,336
24 Atlantic Mutual Insurance Co 271,229,985
25 Amcomp Preferred Insurance Co 58,202,751
 Total U.S. P/C Industry $68,036,230,718

 % Workers' Comp
 Ceded to Total
Rank Company Name Airlines Ceded

 1 Liberty Mutual Insurance Co 45.6
 2 Continental Casualty Co 16.2
 3 Lumbermens Mutual Casualty Co 25.7
 4 Legion Insurance Co 44.3
 5 Travelers Indemnity Co 25.2
 6 Clarendon National Insurance Co 26.8
 7 Ace Property & Casualty Insurance Co 20.4
 8 Royal Indemnity Co 29.4
 9 Combined Specialty Insurance Co 50.4
10 Zurich American Insurance Co 17.6
11 Security Insurance Co of Hartford 54.9
12 Discover Reinsurance Co 27.5
13 American Zurich Insurance Co 68.9
14 National Union Fire Insurance Co PA 6.0
15 Associated Industries Insurance Co 100.0
16 American Home Assurance Co 6.0
17 Fireman's Fund Insurance Co 15.4
18 Hartford Fire Insurance Co 5.5
19 TIG Insurance Co 22.6
20 Great American Insurance Co 10.3
21 Harbor Specialty Insurance Co 71.1
22 Old Republic Insurance Co 29.9
23 Louisiana Workers' Comp Corp 100.0
24 Atlantic Mutual Insurance Co 24.8
25 Amcomp Preferred Insurance Co 100.0
 Total U.S. P/C Industry 11.5

Source: A.M. Best Co. data, as of June 18, 2002. For custom data, please
call (908) 439-2200. ext. 5383.
Liability Reinsurance Assumed, Top Writers--2001

Rank is based on total liability reinsurance assumed for 2001.

 Unaffiliated

 Other Liability
Rank Company Name AMB # Assumed

 1 Employers Reinsurance Corp 00347 $230,103,272
 2 Swiss Reinsurance America Corp 03263 214,807,680
 3 Converium Reinsurance (NA) 02696 183,186,680
 4 American Re-Insurance Co 00149 198,432,497
 5 General Reinsurance Corp 02198 190,986,627
 6 GE Reinsurance Corp 04124 157,065,225
 7 Everest Reinsurance Co 03519 141,894,491
 8 Transatlantic Reinsurance Co 03126 119,343,021
 9 Gerling Global Re Corp of 03046 81,284,688
 America
10 Folksamerica Reinsurance Co 02642 88,994,590
11 Odyssey America Reinsurance 00539 73,154,013
 Corp
12 Trenwick America Reinsurance 03747 61,864,554
 Corp
13 Dorinco Reinsurance Co 03771 44,380,227
14 XL Reinsurance America Inc 02104 38,775,142
15 PMA Capital Insurance Co 02707 34,149,425
16 Partner Reinsurance Co of US 02671 34,262,299
17 Toa Reinsurance Co of America 01730 31,611,108
18 Berkley Insurance Co 03630 29,860,679
19 Scor Reinsurance Co 03599 20,989,954
20 American Agricultural 03133 21,242,294
 Insurance Co
21 Odyssey Reinsurance Corp 03083 6,978,552
22 Axa Corporate Solutions Re Co 03811 4,261,757
23 QBE Reinsurance Corp 04069 4,013,044
24 General Security National 02665 3,674,302
 Insurance
25 Insurance Corp of Hannover 02643 2,551,406
 Total U.S. P/C Industry $3,798,118,526

 Unaffiliated
 Product Total
 Liability Liability
Rank Company Name Assumed Assumed

 1 Employers Reinsurance Corp $4,211,502 $234,314,774
 2 Swiss Reinsurance America Corp 9,073,843 223,881,523
 3 Converium Reinsurance (NA) 23,833,995 207,020,675
 4 American Re-Insurance Co 0 198,432,497
 5 General Reinsurance Corp 333,557 191,320,184
 6 GE Reinsurance Corp 0 157,065,225
 7 Everest Reinsurance Co 914,361 142,808,852
 8 Transatlantic Reinsurance Co 0 119,343,021
 9 Gerling Global Re Corp of 12,250,684 93,535,372
 America
10 Folksamerica Reinsurance Co 0 88,994,590
11 Odyssey America Reinsurance 653,717 73,807,730
 Corp
12 Trenwick America Reinsurance 5,571,362 67,435,916
 Corp
13 Dorinco Reinsurance Co 0 44,380,227
14 XL Reinsurance America Inc 171,513 38,946,655
15 PMA Capital Insurance Co 2,828,014 36,977,439
16 Partner Reinsurance Co of US 215,199 34,477,498
17 Toa Reinsurance Co of America 0 31,611,108
18 Berkley Insurance Co -481,842 29,378,837
19 Scor Reinsurance Co 1,628,436 22,618,390
20 American Agricultural 0 21,242,294
 Insurance Co
21 Odyssey Reinsurance Corp 0 6,978,552
22 Axa Corporate Solutions Re Co 73,672 4,335,429
23 QBE Reinsurance Corp 69,520 4,082,564
24 General Security National -17,329 3,656,973
 Insurance
25 Insurance Corp of Hannover 677,944 3,229,350
 Total U.S. P/C Industry $250,076,192 $4,048,194,718

 Unaffiliated
 Total
 All Lines
Rank Company Name Assumed

 1 Employers Reinsurance Corp $2,402,857,781
 2 Swiss Reinsurance America Corp 2,632,627,143
 3 Converium Reinsurance (NA) 994,307,293
 4 American Re-Insurance Co 3,713,643,297
 5 General Reinsurance Corp 3,534,061,951
 6 GE Reinsurance Corp 1,182,640,325
 7 Everest Reinsurance Co 1,431,455,008
 8 Transatlantic Reinsurance Co 1,917,828,255
 9 Gerling Global Re Corp of 880,758,542
 America
10 Folksamerica Reinsurance Co 635,711,500
11 Odyssey America Reinsurance 883,809,047
 Corp
12 Trenwick America Reinsurance 303,396,802
 Corp
13 Dorinco Reinsurance Co 227,125,679
14 XL Reinsurance America Inc 678,795,691
15 PMA Capital Insurance Co 475,595,137
16 Partner Reinsurance Co of US 466,791,068
17 Toa Reinsurance Co of America 236,918,425
18 Berkley Insurance Co 331,321,407
19 Scor Reinsurance Co 625,912,482
20 American Agricultural 582,190,821
 Insurance Co
21 Odyssey Reinsurance Corp 38,466,372
22 Axa Corporate Solutions Re Co 415,476,181
23 QBE Reinsurance Corp 197,010,153
24 General Security National 142,989,130
 Insurance
25 Insurance Corp of Hannover 355,566,297
 Total U.S. P/C Industry $45,674,671,091


 % Total Liability
 Assumed to
Rank Company Name All Lines Assumed

 1 Employers Reinsurance Corp 9.8
 2 Swiss Reinsurance America Corp 8.5
 3 Converium Reinsurance (NA) 20.8
 4 American Re-Insurance Co 5.3
 5 General Reinsurance Corp 5.4
 6 GE Reinsurance Corp 13.3
 7 Everest Reinsurance Co 10.0
 8 Transatlantic Reinsurance Co 6.2
 9 Gerling Global Re Corp of 10.6
 America
10 Folksamerica Reinsurance Co 14.0
11 Odyssey America Reinsurance 8.4
 Corp
12 Trenwick America Reinsurance 22.2
 Corp
13 Dorinco Reinsurance Co 19.5
14 XL Reinsurance America Inc 5.7
15 PMA Capital Insurance Co 7.8
16 Partner Reinsurance Co of US 7.4
17 Toa Reinsurance Co of America 13.3
18 Berkley Insurance Co 8.9
19 Scor Reinsurance Co 3.6
20 American Agricultural 3.7
 Insurance Co
21 Odyssey Reinsurance Corp 18.1
22 Axa Corporate Solutions Re Co 1.0
23 QBE Reinsurance Corp 2.1
24 General Security National 2.6
 Insurance
25 Insurance Corp of Hannover 0.9
 Total U.S. P/C Industry 8.9

Source: A.M. Best Co. data, as of June 18, 2002. For custom data, please
call (908) 439-2200, ext. 5383.
Liability Reinsurance Ceded, Top Writers--2001

Rank is based on total liability reinsurance ceded for 2001.



 Total Liability
 Direct Premiums
Rank Company Name AMB # Written

 1 Lumbermens Mutual Casualty Co 02279 $838,264,714
 2 National Union Fire Insurance Co PA 02351 2,412,876,964
 3 American Home Assurance Co 02034 735,691,968
 4 Hartford Fire Insurance Co 02231 83,258,187
 5 Zurich American Insurance Co 02563 821,588,294
 6 Continental Casualty Co 02128 752,906,545
 7 Ace Property & Casualty 01996 2,242,864
 Insurance Co
 8 Travelers Indemnity Co 02520 86,687,520
 9 United National Insurance Co 03128 277,520,107
10 Royal Indemnity Co 02438 103,367,341
11 Liberty Mutual Insurance Co 02283 281,325,490
12 Steadfast Insurance Co 03557 632,069,869
13 Federal Insurance Co 02084 1,325,631,758
14 Great American Insurance Co 02213 199,629,139
15 Commerce & Industry Insurance Co 04000 291,378,090
16 St Paul Fire & Marine Insurance Co 02452 885,455,859
17 TIG Insurance Co 02507 339,571,130
18 Scottsdale Insurance Co 03292 312,416,323
19 Lexington Insurance Co 02350 923,399,849
20 Discover Reinsurance Co 11220 0
21 Legion Insurance Co 02352 152,631,000
22 Westchester Fire Insurance Co 02137 146,345,685
23 American Guarantee & 02562 357,394,567
 Liability Insurance
24 Clarendon National Insurance Co 01975 110,512,767
25 Fireman's Fund Insurance Co 02179 218,135,378
 Total U.S. P/C Industry $33,810,089,034


 Unaffiliated
 Other
 Liability
Rank Company Name Ceded

 1 Lumbermens Mutual Casualty Co $768,526,978
 2 National Union Fire Insurance Co PA 749,002,944
 3 American Home Assurance Co 709,869,716
 4 Hartford Fire Insurance Co 581,314,008
 5 Zurich American Insurance Co 514,876,070
 6 Continental Casualty Co 458,646,988
 7 Ace Property & Casualty 424,851,216
 Insurance Co
 8 Travelers Indemnity Co 361,556,522
 9 United National Insurance Co 302,704,297
10 Royal Indemnity Co 244,644,092
11 Liberty Mutual Insurance Co 230,267,133
12 Steadfast Insurance Co 213,834,109
13 Federal Insurance Co 165,077,161
14 Great American Insurance Co 201,237,887
15 Commerce & Industry Insurance Co 197,106,140
16 St Paul Fire & Marine Insurance Co 151,843,524
17 TIG Insurance Co 145,613,819
18 Scottsdale Insurance Co 143,597,286
19 Lexington Insurance Co 97,075,946
20 Discover Reinsurance Co 135.777,654
21 Legion Insurance Co 120,150,014
22 Westchester Fire Insurance Co 118,082,273
23 American Guarantee & 99,893,332
 Liability Insurance
24 Clarendon National Insurance Co 105,063,088
25 Fireman's Fund Insurance Co 102,753,194
 Total U.S. P/C Industry $11,341,679,061


 Unaffiliated
 Product
 Liability
Rank Company Name Ceded

 1 Lumbermens Mutual Casualty Co $52,216,283
 2 National Union Fire Insurance Co PA 7,077,118
 3 American Home Assurance Co 6,704,639
 4 Hartford Fire Insurance Co 87,969,066
 5 Zurich American Insurance Co 28,282,550
 6 Continental Casualty Co 10,915,454
 7 Ace Property & Casualty -5,716,254
 Insurance Co
 8 Travelers Indemnity Co 7,488,824
 9 United National Insurance Co 7,064,165
10 Royal Indemnity Co 4,933,357
11 Liberty Mutual Insurance Co 13,795,714
12 Steadfast Insurance Co 6,907,495
13 Federal Insurance Co 47,570,781
14 Great American Insurance Co 10,047,995
15 Commerce & Industry Insurance Co 1,862,400
16 St Paul Fire & Marine Insurance Co 26,130,187
17 TIG Insurance Co 6,454,439
18 Scottsdale Insurance Co 916,274
19 Lexington Insurance Co 45,854,367
20 Discover Reinsurance Co 0
21 Legion Insurance Co 892,965
22 Westchester Fire Insurance Co 1,498,659
23 American Guarantee & 9,805,729
 Liability Insurance
24 Clarendon National Insurance Co 243,418
25 Fireman's Fund Insurance Co 1,496,298
 Total U.S. P/C Industry $567,376,797


 Unaffiliated
 Total
 Liability
Rank Company Name Ceded

 1 Lumbermens Mutual Casualty Co $820,743,261
 2 National Union Fire Insurance Co PA 756,080,062
 3 American Home Assurance Co 716,574,355
 4 Hartford Fire Insurance Co 669,283,074
 5 Zurich American Insurance Co 543,158,620
 6 Continental Casualty Co 469,562,442
 7 Ace Property & Casualty 419,134,962
 Insurance Co
 8 Travelers Indemnity Co 369,045,346
 9 United National Insurance Co 309,768,462
10 Royal Indemnity Co 249,577,449
11 Liberty Mutual Insurance Co 244,062,847
12 Steadfast Insurance Co 220,741,604
13 Federal Insurance Co 212,647,942
14 Great American Insurance Co 211,285,882
15 Commerce & Industry Insurance Co 198,968,540
16 St Paul Fire & Marine Insurance Co 177,973,711
17 TIG Insurance Co 152,068,258
18 Scottsdale Insurance Co 144,513,560
19 Lexington Insurance Co 143,930,313
20 Discover Reinsurance Co 135,777,654
21 Legion Insurance Co 121,042,979
22 Westchester Fire Insurance Co 119,580,932
23 American Guarantee & 109,699,061
 Liability Insurance
24 Clarendon National Insurance Co 105,306,506
25 Fireman's Fund Insurance Co 104,249,492
 Total U.S. P/C Industry $11,909,055,858


 Unaffiliated
 Total
 All Lines
Rank Company Name Ceded

 1 Lumbermens Mutual Casualty Co $2,310,565,882
 2 National Union Fire Insurance Co PA 1,747,042,240
 3 American Home Assurance Co 1,659,961,291
 4 Hartford Fire Insurance Co 1,733,139,628
 5 Zurich American Insurance Co 1,380,741,850
 6 Continental Casualty Co 3,709,805,373
 7 Ace Property & Casualty 1,607,747,494
 Insurance Co
 8 Travelers Indemnity Co 1,397,139,343
 9 United National Insurance Co 497,987,288
10 Royal Indemnity Co 1,066,827,388
11 Liberty Mutual Insurance Co 1,527,877,405
12 Steadfast Insurance Co 244,689,939
13 Federal Insurance Co 708,539,586
14 Great American Insurance Co 771,924,961
15 Commerce & Industry Insurance Co 459,748,085
16 St Paul Fire & Marine Insurance Co 1,065,543,518
17 TIG Insurance Co 386,072,714
18 Scottsdale Insurance Co 195,292,398
19 Lexington Insurance Co 698,787,237
20 Discover Reinsurance Co 557,578,643
21 Legion Insurance Co 840,482,476
22 Westchester Fire Insurance Co 253,900,942
23 American Guarantee & 146,998,111
 Liability Insurance
24 Clarendon National Insurance Co 1,223,533,405
25 Fireman's Fund Insurance Co 618,317,284
 Total U.S. P/C Industry $68,036,230,718

 %Total
 Liability
 Ceded
 to all Lines
Rank Company Name Ceded

 1 Lumbermens Mutual Casualty Co 35.5
 2 National Union Fire Insurance Co PA 43.3
 3 American Home Assurance Co 43.2
 4 Hartford Fire Insurance Co 38.6
 5 Zurich American Insurance Co 39.3
 6 Continental Casualty Co 12.7
 7 Ace Property & Casualty 26.1
 Insurance Co
 8 Travelers Indemnity Co 26.4
 9 United National Insurance Co 62.2
10 Royal Indemnity Co 23.4
11 Liberty Mutual Insurance Co 16.0
12 Steadfast Insurance Co 90.2
13 Federal Insurance Co 30.0
14 Great American Insurance Co 27.4
15 Commerce & Industry Insurance Co 43.3
16 St Paul Fire & Marine Insurance Co 16.7
17 TIG Insurance Co 39.4
18 Scottsdale Insurance Co 74.0
19 Lexington Insurance Co 20.6
20 Discover Reinsurance Co 24.4
21 Legion Insurance Co 14.4
22 Westchester Fire Insurance Co 47.1
23 American Guarantee & 74.6
 Liability Insurance
24 Clarendon National Insurance Co 8.6
25 Fireman's Fund Insurance Co 16.9
 Total U.S. P/C Industry 17.5

Source: A.M. Best Co. data, as of June 18, 2002. For custom data, please
call (908) 439-2200, ext. 5383.
Auto Reinsurance Assumed, Top Writers--2001

Rank is based on total auto reinsurance assumed for 2001.

($ Thousands)

 Unaffiliated
 Private-
 Passenger
 Auto Liability
Rank Company AMB # Assumed

 1 Transatlantic Reins Co 03126 $429,553
 2 GE Reins Corp 04124 140,061
 3 Gerling Global Re Corp of America 03046 173,317
 4 American Re-Ins Co 00149 23,533
 5 Odyssey America Reins Corp 00539 75,671
 6 General Reins Corp 02198 73,219
 7 Dorinco Reins Co 03771 128,828
 8 Folksamerica Reins Co 02642 28,297
 9 Axa Corporate Solutions Re Co 03811 65,320
10 Everest Reins Co 03519 28,506
11 Partner Reins Co of US 02671 46,634
12 Insurance Corp of Hannover 02643 51,839
13 PMA Capital Ins Co 02707 41,028
14 Scor Reins Co 03599 17,417
15 Employers Reins Corp 00347 -23,426
16 Converium Reins (NA) 02696 8,299
17 Swiss Reins America Corp 03263 1,220
18 QBE Reins Corp 04069 20,014
19 Overseas Partners US Reins Co 55027 19,089
20 Berkley Ins Co 03630 707
21 Toa Reins Co of America 01730 23,223
22 Trenwick America Reins Corp 03747 3,021
23 American Agricultural Ins Co 03133 18,178
24 XL Reins America Inc 02104 0
25 PartnerRe Ins Co of NY 03025 4,833
 Total U.S. P/C Industry $3,604,122

 Unaffiliated
 Auto
 Commercial Physical
 Auto Liability Damage
Rank Company Assumed Assumed

 1 Transatlantic Reins Co $61,121 $41,618
 2 GE Reins Corp 133,165 128,421
 3 Gerling Global Re Corp of America 37,100 74,061
 4 American Re-Ins Co 102,535 40,126
 5 Odyssey America Reins Corp 37,618 37,612
 6 General Reins Corp 32,052 28,208
 7 Dorinco Reins Co 0 3,369
 8 Folksamerica Reins Co 83,778 186
 9 Axa Corporate Solutions Re Co 2,383 43,816
10 Everest Reins Co 5,750 61,243
11 Partner Reins Co of US 19,986 25,072
12 Insurance Corp of Hannover 11,554 27,463
13 PMA Capital Ins Co 17,132 23,867
14 Scor Reins Co 1,120 57,978
15 Employers Reins Corp 90,565 3,118
16 Converium Reins (NA) 51,146 10,239
17 Swiss Reins America Corp 49,894 1,400
18 QBE Reins Corp 12,185 7,493
19 Overseas Partners US Reins Co 3,501 9,895
20 Berkley Ins Co 22,311 4,875
21 Toa Reins Co of America 0 1,450
22 Trenwick America Reins Corp 16,316 4,407
23 American Agricultural Ins Co 0 214
24 XL Reins America Inc 14,178 329
25 PartnerRe Ins Co of NY 2,071 4,393
 Total U.S. P/C Industry $2,050,862 $2,269,480

 Unaffiliated

 Total Total
 Auto All Lines
Rank Company Assumed Assumed

 1 Transatlantic Reins Co $532,293 $1,917,828
 2 GE Reins Corp 401,647 1,182,640
 3 Gerling Global Re Corp of America 284,477 880,759
 4 American Re-Ins Co 166,194 3,713,643
 5 Odyssey America Reins Corp 150,901 883,809
 6 General Reins Corp 133,480 3,534,062
 7 Dorinco Reins Co 132,197 227,126
 8 Folksamerica Reins Co 112,261 635,712
 9 Axa Corporate Solutions Re Co 111,519 415,476
10 Everest Reins Co 95,500 1,431,455
11 Partner Reins Co of US 91,692 466,791
12 Insurance Corp of Hannover 90,856 355,566
13 PMA Capital Ins Co 82,027 475,595
14 Scor Reins Co 76,515 625,912
15 Employers Reins Corp 70,257 2,402,858
16 Converium Reins (NA) 69,685 994,307
17 Swiss Reins America Corp 52,514 2,632,627
18 QBE Reins Corp 39,691 197,010
19 Overseas Partners US Reins Co 32,485 138,148
20 Berkley Ins Co 27,893 331,321
21 Toa Reins Co of America 24,672 236,918
22 Trenwick America Reins Corp 23,744 303,397
23 American Agricultural Ins Co 18,392 582,191
24 XL Reins America Inc 14,506 678,796
25 PartnerRe Ins Co of NY 11,298 53,789
 Total U.S. P/C Industry $7,924,463 $45,674,671


 % Total Auto
 Assumed to
 Total All Lines
Rank Company Assumed

 1 Transatlantic Reins Co 27.8
 2 GE Reins Corp 34.0
 3 Gerling Global Re Corp of America 32.3
 4 American Re-Ins Co 4.5
 5 Odyssey America Reins Corp 17.1
 6 General Reins Corp 3.8
 7 Dorinco Reins Co 58.2
 8 Folksamerica Reins Co 17.7
 9 Axa Corporate Solutions Re Co 26.8
10 Everest Reins Co 6.7
11 Partner Reins Co of US 19.6
12 Insurance Corp of Hannover 25.6
13 PMA Capital Ins Co 17.3
14 Scor Reins Co 12.2
15 Employers Reins Corp 2.9
16 Converium Reins (NA) 7.0
17 Swiss Reins America Corp 2.0
18 QBE Reins Corp 20.2
19 Overseas Partners US Reins Co 23.5
20 Berkley Ins Co 8.4
21 Toa Reins Co of America 10.4
22 Trenwick America Reins Corp 7.8
23 American Agricultural Ins Co 3.2
24 XL Reins America Inc 2.1
25 PartnerRe Ins Co of NY 21.0
 Total U.S. P/C Industry 17.4

Source: A.M. Best Co. data, as of June 18, 2002. For custom data, please
call (908) 439-2200, ext. 5383.
Auto Reinsurance Ceded, Top Writers--2001

Rank is based on total auto reinsurance ceded for 2001.

($ Thousands)



 Total Auto
 Direct
 Premiums
Rank Company AMB # Written

 1 Farmers Ins Exchange 02171 $2,855,615
 2 Glens Falls Ins Co 02121 519,492
 3 Continental Ins Co 02118 280,756
 4 State & County Mutual Fire 10445 403,205
 5 Clarendon National Ins Co 01975 419,368
 6 Home State County Mutual Ins Co 10311 260,892
 7 Old American County Mutual Fire 10360 229,554
 8 St Paul Fire & Marine Ins Co 02452 516,879
 9 Continental Casualty Co 02128 314,053
10 Liberty Mutual Ins Co 02283 628,556
11 Maryland Casualty Co 02306 129,445
12 Nationwide Mutual Ins Co 02358 3,564,891
13 Discover Reinsurance Co 11220 0
14 Lumbermens Mutual Casualty Co 02279 336,453
15 State National Ins Co Inc 10681 168,570
16 Republic Underwriters Ins Co 02422 4,676
17 Travelers Indemnity Co 02520 415,512
18 Royal Indemnity Co 02438 107,763
19 OneBeacon Ins Co 02196 126,804
20 Coast National Ins Co 00177 220,896
21 Legion Ins Co 02352 163,427
22 Arbella Mutual Ins Co 10663 411,943
23 New York Central Mutual Fire 00700 300,602
24 S. Carolina Farm Bureau Mutual 00838 103,602
25 Northland Ins Co 00712 289,753
 Total U.S. P/C Industry $156,464,508


 Unaffiliated
 Private-
 Passenger
 Auto Liability
Rank Company Ceded

 1 Farmers Ins Exchange $3,513
 2 Glens Falls Ins Co 293,032
 3 Continental Ins Co 275,264
 4 State & County Mutual Fire 207,863
 5 Clarendon National Ins Co 133,038
 6 Home State County Mutual Ins Co 120,402
 7 Old American County Mutual Fire 104,712
 8 St Paul Fire & Marine Ins Co 62,448
 9 Continental Casualty Co 868
10 Liberty Mutual Ins Co 56,802
11 Maryland Casualty Co 84,335
12 Nationwide Mutual Ins Co 95,674
13 Discover Reinsurance Co 0
14 Lumbermens Mutual Casualty Co 24,263
15 State National Ins Co Inc 31,853
16 Republic Underwriters Ins Co 14,171
17 Travelers Indemnity Co 6,833
18 Royal Indemnity Co 29,605
19 OneBeacon Ins Co 36,633
20 Coast National Ins Co 78,343
21 Legion Ins Co 19,017
22 Arbella Mutual Ins Co 72,215
23 New York Central Mutual Fire 74,233
24 S. Carolina Farm Bureau Mutual 54,523
25 Northland Ins Co -34
 Total U.S. P/C Industry $4,786,987


 Unaffiliated
 Auto
 Commercial Physical
 Auto Liability Damage
Rank Company Ceded Ceded

 1 Farmers Ins Exchange $0 $1,381,488
 2 Glens Falls Ins Co 0 220,658
 3 Continental Ins Co 312 183,774
 4 State & County Mutual Fire 52,617 137,552
 5 Clarendon National Ins Co 136,143 53,945
 6 Home State County Mutual Ins Co 33,812 80,530
 7 Old American County Mutual Fire 36,197 87,003
 8 St Paul Fire & Marine Ins Co 118,257 42,109
 9 Continental Casualty Co 208,708 5,367
10 Liberty Mutual Ins Co 101,315 31,745
11 Maryland Casualty Co 17,625 78,218
12 Nationwide Mutual Ins Co 7,212 58,670
13 Discover Reinsurance Co 121,858 30,112
14 Lumbermens Mutual Casualty Co 78,434 41,564
15 State National Ins Co Inc 718,890 30,450
16 Republic Underwriters Ins Co 52,298 67,210
17 Travelers Indemnity Co 105,314 13,951
18 Royal Indemnity Co 80,974 13,334
19 OneBeacon Ins Co 38,639 48,597
20 Coast National Ins Co 0 44,967
21 Legion Ins Co 60,397 41,658
22 Arbella Mutual Ins Co 899 41,590
23 New York Central Mutual Fire 0 34,771
24 S. Carolina Farm Bureau Mutual 3,921 45,158
25 Northland Ins Co 100,894 870
 Total U.S. P/C Industry $3,460,433 $4,961,872


 Unaffiliated

 Total Total
 Auto All Lines
Rank Company Ceded Ceded

 1 Farmers Ins Exchange $1,385,001 $1,389,540
 2 Glens Falls Ins Co 513,690 742,296
 3 Continental Ins Co 459,350 749,321
 4 State & County Mutual Fire 398,032 398,662
 5 Clarendon National Ins Co 323,126 1,223,533
 6 Home State County Mutual Ins Co 234,744 235,271
 7 Old American County Mutual Fire 227,912 228,096
 8 St Paul Fire & Marine Ins Co 222,814 1,065,544
 9 Continental Casualty Co 214,944 3,709,805
10 Liberty Mutual Ins Co 189,863 1,527,877
11 Maryland Casualty Co 180,178 320,844
12 Nationwide Mutual Ins Co 161,556 339,753
13 Discover Reinsurance Co 151,970 557,579
14 Lumbermens Mutual Casualty Co 144,260 2,310,566
15 State National Ins Co Inc 134,192 182,020
16 Republic Underwriters Ins Co 133,680 170,513
17 Travelers Indemnity Co 126,098 1,397,139
18 Royal Indemnity Co 123,914 1,066,827
19 OneBeacon Ins Co 123,869 304,097
20 Coast National Ins Co 123,310 123,310
21 Legion Ins Co 121,071 840,482
22 Arbella Mutual Ins Co 114,704 116,474
23 New York Central Mutual Fire 109,004 154,499
24 S. Carolina Farm Bureau Mutual 103,602 115,411
25 Northland Ins Co 101,730 138,286
 Total U.S. P/C Industry $13,209,293 $68,036,231

 Total
 Auto
 Ceded
 to Total
 All Lines
Rank Company Ceded

 1 Farmers Ins Exchange 99.7
 2 Glens Falls Ins Co 69.2
 3 Continental Ins Co 61.3
 4 State & County Mutual Fire 99.8
 5 Clarendon National Ins Co 26.4
 6 Home State County Mutual Ins Co 99.8
 7 Old American County Mutual Fire 99.9
 8 St Paul Fire & Marine Ins Co 20.9
 9 Continental Casualty Co 5.8
10 Liberty Mutual Ins Co 12.4
11 Maryland Casualty Co 56.2
12 Nationwide Mutual Ins Co 47.6
13 Discover Reinsurance Co 27.3
14 Lumbermens Mutual Casualty Co 6.2
15 State National Ins Co Inc 73.7
16 Republic Underwriters Ins Co 78.4
17 Travelers Indemnity Co 9.0
18 Royal Indemnity Co 11.6
19 OneBeacon Ins Co 40.7
20 Coast National Ins Co 100.0
21 Legion Ins Co 14.4
22 Arbella Mutual Ins Co 98.5
23 New York Central Mutual Fire 70.6
24 S. Carolina Farm Bureau Mutual 89.8
25 Northland Ins Co 73.6
 Total U.S. P/C Industry 19.4

Source: A.M. Best Co. data, as of June 18, 2002. For custom data, please
call (908) 439-2200, ext. 5383.
Commercial Multiple Peril Reinsurance Assumed, Top Writers--2001

Rank is based on commercial multiple peril reinsurance assumed for 2001.



Rank Company Name AMB #

 1 American Re-Insurance Co 00149
 2 Swiss Reinsurance America Corp 03263
 3 National Indemnity Co 02429
 4 Scor Reinsurance Co 03599
 5 GE Reinsurance Corp 04124
 6 Converium Reinsurance (NA) 02696
 7 Everest Reinsurance Co 03519
 8 Gerling Global Re Corp of America 03046
 9 Odyssey America Reinsurance Corp 00539
10 PMA Capital Insurance Co 02707
11 Employers Reinsurance Corp 00347
12 Insurance Corp of Hannover 02643
13 American Agricultural Insurance Co 03133
14 Axa Corporate Solutions Re Co 03811
15 QBE Reinsumnce Corp 04069
16 General Reinsurance Corp 02198
17 Pxre Reinsurance Co 02797
18 Berkley Insurance Co 03630
19 Commercial Risk Re-Insurance 11378
20 Dorinco Reinsurance Co 03771
21 Transatlantic Reinsurance Co 03126
22 General Security National Insurance 02665
23 Tea Reinsurance Co of America 01730
24 Partner Reinsurance Co of US 02671
25 Greenwich Insurance Co 11095
 Total U.S. P/C Industry

 Unaffiliated
 Commercial Multiple
Rank Company Name Peril Assumed

 1 American Re-Insurance Co $110,864,834
 2 Swiss Reinsurance America Corp 85,012,802
 3 National Indemnity Co 79,453,614
 4 Scor Reinsurance Co 63,182,002
 5 GE Reinsurance Corp 61,403,598
 6 Converium Reinsurance (NA) 56,440,101
 7 Everest Reinsurance Co 48,642,214
 8 Gerling Global Re Corp of America 38,231,900
 9 Odyssey America Reinsurance Corp 37,936,721
10 PMA Capital Insurance Co 30,224,603
11 Employers Reinsurance Corp 24,181,019
12 Insurance Corp of Hannover 23,129,380
13 American Agricultural Insurance Co 19,154,607
14 Axa Corporate Solutions Re Co 18,097,852
15 QBE Reinsumnce Corp 16,944,323
16 General Reinsurance Corp 14,745,921
17 Pxre Reinsurance Co 14,489,784
18 Berkley Insurance Co 12,687,946
19 Commercial Risk Re-Insurance 12,566,579
20 Dorinco Reinsurance Co 8,507,134
21 Transatlantic Reinsurance Co 7,699,943
22 General Security National Insurance 5,848,599
23 Tea Reinsurance Co of America 2,703,416
24 Partner Reinsurance Co of US 1,781,726
25 Greenwich Insurance Co 1,427,862
 Total U.S. P/C Industry $1,309,366,340

 Unaffiliated
 Total All
Rank Company Name Lines Assumed

 1 American Re-Insurance Co $3,713,643,297
 2 Swiss Reinsurance America Corp 2,632,627,143
 3 National Indemnity Co 917,623,838
 4 Scor Reinsurance Co 625,912,482
 5 GE Reinsurance Corp 1,182,640,325
 6 Converium Reinsurance (NA) 994,307,293
 7 Everest Reinsurance Co 1,431,455,008
 8 Gerling Global Re Corp of America 880,758,542
 9 Odyssey America Reinsurance Corp 883,809,047
10 PMA Capital Insurance Co 475,595,137
11 Employers Reinsurance Corp 2,402,857,781
12 Insurance Corp of Hannover 355,566,297
13 American Agricultural Insurance Co 582,190,821
14 Axa Corporate Solutions Re Co 415,476,181
15 QBE Reinsumnce Corp 197,010,153
16 General Reinsurance Corp 3,534,061,951
17 Pxre Reinsurance Co 276,089,259
18 Berkley Insurance Co 331,321,407
19 Commercial Risk Re-Insurance 103,939,683
20 Dorinco Reinsurance Co 227,125,679
21 Transatlantic Reinsurance Co 1,917,828,255
22 General Security National Insurance 142,989,130
23 Tea Reinsurance Co of America 236,918,425
24 Partner Reinsurance Co of US 466,791,068
25 Greenwich Insurance Co 7,481,203
 Total U.S. P/C Industry $45,674,671,091

 % Commercial
 Multiple Peril Assumed
Rank Company Name to All Lines Assumed

 1 American Re-Insurance Co 3.0
 2 Swiss Reinsurance America Corp 3.2
 3 National Indemnity Co 8.7
 4 Scor Reinsurance Co 10.1
 5 GE Reinsurance Corp 5.2
 6 Converium Reinsurance (NA) 5.7
 7 Everest Reinsurance Co 3.4
 8 Gerling Global Re Corp of America 4.3
 9 Odyssey America Reinsurance Corp 4.3
10 PMA Capital Insurance Co 6.4
11 Employers Reinsurance Corp 1.0
12 Insurance Corp of Hannover 6.5
13 American Agricultural Insurance Co 3.3
14 Axa Corporate Solutions Re Co 4.4
15 QBE Reinsumnce Corp 8.6
16 General Reinsurance Corp 0.4
17 Pxre Reinsurance Co 5.3
18 Berkley Insurance Co 3.8
19 Commercial Risk Re-Insurance 12.1
20 Dorinco Reinsurance Co 3.8
21 Transatlantic Reinsurance Co 0.4
22 General Security National Insurance 4.1
23 Tea Reinsurance Co of America 1.1
24 Partner Reinsurance Co of US 0.4
25 Greenwich Insurance Co 19.1
 Total U.S. P/C Industry 2.9

Source: A.M. Best Co. data, as of June 18, 2002. For custom data, please
call (908) 439- 2200, ext. 5383.
Commercial Multiple Peril Reinsurance Ceded, Top Writers--2001

Rank is based on commercial multiple peril reinsurance ceded for 2001.




Rank Company Name AMB #

 1 Continental Casualty Co 02128
 2 Federal Insurance Co 02084
 3 Travelers Indemnity Co 02520
 4 Lumbermens Mutual Casualty Co 02279
 5 Royal Indemnity Co 02438
 6 Hartford Fire Insurance Co 02231
 7 Atlantic Mutual Insurance Co 02063
 8 United National Insurance Co 03128
 9 OneBeacon Insurance Co 02196
10 GuideOne Mutual Insurance Co 02404
11 Legion Insurance Co 02352
12 Clarendon National Insurance Co 01975
13 Great American Insurance Co 02213
14 Hanover Insurance Co 02225
15 Insurance Corp of New York 03500
16 St Paul Fire & Marine Insurance Co 02452
17 Liberty Mutual Insurance Co 02283
18 American Alternative Insurance Corp 11574
19 Church Mutual Insurance Co 00259
20 Peerless Insurance Co 02394
21 United States Fidelity & Guarantee Co 02539
22 Fireman's Fund Insurance Co 02179
23 State Farm Fire & Casualty Co 02477
24 Maryland Casualty Co 02306
25 Westport Insurance Corp 02301
 Total U.S. P/C Industry

 Total Commercial
 Multiple Peril
 Direct Premiums
Rank Company Name Written

 1 Continental Casualty Co $180,486,444
 2 Federal Insurance Co 709,703,279
 3 Travelers Indemnity Co 213,839,166
 4 Lumbermens Mutual Casualty Co 111,471,773
 5 Royal Indemnity Co 128,611,233
 6 Hartford Fire Insurance Co 430,490,915
 7 Atlantic Mutual Insurance Co 246,710,658
 8 United National Insurance Co 85,132,150
 9 OneBeacon Insurance Co 94,727,902
10 GuideOne Mutual Insurance Co 95,378,602
11 Legion Insurance Co 109,069,801
12 Clarendon National Insurance Co 71,549,902
13 Great American Insurance Co 37,433,466
14 Hanover Insurance Co 118,918,894
15 Insurance Corp of New York 67,128,215
16 St Paul Fire & Marine Insurance Co 252,441,452
17 Liberty Mutual Insurance Co 7,967,288
18 American Alternative Insurance Corp 91,078,186
19 Church Mutual Insurance Co 197,668,323
20 Peerless Insurance Co 120,698,963
21 United States Fidelity & Guarantee Co 102,178,610
22 Fireman's Fund Insurance Co 266,615,496
23 State Farm Fire & Casualty Co 660,316,921
24 Maryland Casualty Co 272,898,559
25 Westport Insurance Corp 327,732,961
 Total U.S. P/C Industry $25,861,259,952

 Unaffiliated
 Commerical
 Multiple
Rank Company Name Peril Ceded

 1 Continental Casualty Co $287,924,697
 2 Federal Insurance Co 152,125,327
 3 Travelers Indemnity Co 144,311,594
 4 Lumbermens Mutual Casualty Co 141,031,431
 5 Royal Indemnity Co 138,613,313
 6 Hartford Fire Insurance Co 138,155,504
 7 Atlantic Mutual Insurance Co 120,283,141
 8 United National Insurance Co 94,411,236
 9 OneBeacon Insurance Co 83,890,697
10 GuideOne Mutual Insurance Co 83,464,181
11 Legion Insurance Co 82,588,814
12 Clarendon National Insurance Co 73,696,697
13 Great American Insurance Co 70,160,385
14 Hanover Insurance Co 65,736,563
15 Insurance Corp of New York 59,738,580
16 St Paul Fire & Marine Insurance Co 58,289,782
17 Liberty Mutual Insurance Co 50,506,545
18 American Alternative Insurance Corp 49,745,633
19 Church Mutual Insurance Co 49,338,674
20 Peerless Insurance Co 46,247,766
21 United States Fidelity & Guarantee Co 46,079,639
22 Fireman's Fund Insurance Co 44,539,737
23 State Farm Fire & Casualty Co 42,758,149
24 Maryland Casualty Co 40,671,759
25 Westport Insurance Corp 39,832,259
 Total U.S. P/C Industry $4,280,716,334

 Unaffiliated

 Total all
Rank Company Name Lines Ceded

 1 Continental Casualty Co $3,709,805,373
 2 Federal Insurance Co 708,539,586
 3 Travelers Indemnity Co 1,397,139,343
 4 Lumbermens Mutual Casualty Co 2,310,565,882
 5 Royal Indemnity Co 1,066,827,388
 6 Hartford Fire Insurance Co 1,733,139,628
 7 Atlantic Mutual Insurance Co 271,229,985
 8 United National Insurance Co 497,987,288
 9 OneBeacon Insurance Co 304,097,040
10 GuideOne Mutual Insurance Co 215,498,457
11 Legion Insurance Co 840,482,476
12 Clarendon National Insurance Co 1,223,533,405
13 Great American Insurance Co 771,924,961
14 Hanover Insurance Co 218,845,258
15 Insurance Corp of New York 184,723,206
16 St Paul Fire & Marine Insurance Co 1,055,543,518
17 Liberty Mutual Insurance Co 1,527,877,405
18 American Alternative Insurance Corp 118,803,245
19 Church Mutual Insurance Co 60,417,798
20 Peerless Insurance Co 171,196,200
21 United States Fidelity & Guarantee Co 302,124,817
22 Fireman's Fund Insurance Co 618,317,284
23 State Farm Fire & Casualty Co 361,246,091
24 Maryland Casualty Co 320,844,232
25 Westport Insurance Corp 92,195,842
 Total U.S. P/C Industry $68,036,230,718

 % Commercial
 Miltiple Peril
 Ceded to All
Rank Company Name Lines Ceded

 1 Continental Casualty Co 7.8
 2 Federal Insurance Co 21.5
 3 Travelers Indemnity Co 10.3
 4 Lumbermens Mutual Casualty Co 6.1
 5 Royal Indemnity Co 13.0
 6 Hartford Fire Insurance Co 8.0
 7 Atlantic Mutual Insurance Co 44.4
 8 United National Insurance Co 19.0
 9 OneBeacon Insurance Co 27.6
10 GuideOne Mutual Insurance Co 38.7
11 Legion Insurance Co 9.8
12 Clarendon National Insurance Co 6.0
13 Great American Insurance Co 9.1
14 Hanover Insurance Co 30.0
15 Insurance Corp of New York 32.3
16 St Paul Fire & Marine Insurance Co 5.5
17 Liberty Mutual Insurance Co 3.3
18 American Alternative Insurance Corp 41.9
19 Church Mutual Insurance Co 81.7
20 Peerless Insurance Co 27.0
21 United States Fidelity & Guarantee Co 15.3
22 Fireman's Fund Insurance Co 7.2
23 State Farm Fire & Casualty Co 11.8
24 Maryland Casualty Co 12.7
25 Westport Insurance Corp 43.2
 Total U.S. P/C Industry 6.3

Source: A.M. Best Co. data, as of June 18, 2002. For custom data, please
call (908) 439-2200, ext. 5383.


RELATED ARTICLE: Moving Beyond Boilers

Hartford Steam Boiler Group has learned how to carve out its own niche in the world of reinsurance.

For more than three decades, Hartford Steam Boiler has been providing equipment breakdown reinsurance for its clients, which now number more than 240 companies. In effect, Hartford Steam acts as their boiler machinery department, said William Heckles, chief reinsurance officer for HSB Group. "We do the underwriting, the engineering, the claims--pretty much a turnkey operation," he said. "We have people who do nothing other than operate on behalf of specific client companies--underwriters, engineers, claims people--so they are highly integrated into the client company's operations as with any other department?"

But in the last five years, Hartford Steam has been looking at other ways it could support client companies. "We began with property and we were providing that on a facultative and treaty basis," Heckles said. "If the client company found a particular area that it wanted to outsource, we would hold ourselves out as their underwriting department and again provide engineering and claims service."

This has appealed to a number of regional casualty companies that are considering the plunge into the property market but unsure whether they want to buy or rent. "If their decision is to outsource, then we have a program that they can tap into that allows them to get into property pretty quickly and round out their package policies or service to their customers," he said.

His company is not holding itself out to be a large professional reinsurer, Heckles said. "But our proximity to these client companies as a business partner has allowed us to engage them in a discussion about their needs and to explore solutions, whether that's treaty or services," he said.

So if a client company is putting together an excess of loss program or pro rata property treaty and decides the market is coming up short of what it needs, Hartford Steam can step into the breach. "We're right there to talk to them about filling that gap; we have direct contact with these companies--probably more than any intermediary and any reinsurer because of our boiler-machinery relationship," Heckles said.

These calls for assistance have been increasing lately, he noted. This could be due to a pricing issue, a change in terms, even a security issue--with the contraction in the market, smaller reinsurers having financial problems may no longer meet a client company's security guidelines, Heckles said. Since Hartford Steam is a subsidiary of global financial-services giant American International Group, it has a high rating, "and there's a flight to quality when it comes to the security of reinsurance," he said.

In fact, since its acquisition by AIG in November 2000, Hartford Steam has been positioning itself to be able to provide solutions to its client companies, Heckles said.

As the July 1, 2002, renewals approached, Hartford Steam's client companies were struggling with a number of issues, including terrorism coverage. Hartford Steam was able to give them access to an AIG terrorism facility. "We're able to support the giving of access to AIG's abilities solution for mold and other problems that reinsurers in general are trying to exclude themselves from," Heckles said.

Until a few years ago, major reinsurers like Employers Re or American Re or Gen Re would come to a regional company and offer coverage written on an all-perils basis, whether the limit was $25 million or $40 million, Heckles said.

But he doesn't see that happening anymore. Reinsurers are much more thoughtful about their accumulations and their total liabilities, he said. "They are putting themselves through some pretty rigorous underwriting protocols and so that's created a lot of change, a lot of turning in the marketplace in the last 18 months," Heckles said. "And every time that happens, we hope a client company will think of us and give us a chance."

Life Insurers Seek More Risk Takers

Since the World Trade Center catastrophe, life insurers accustomed to using two or three reinsurers began spreading the risk to as many as 12, a trend that could result in a life reinsurance capacity shortage in 2003, said a Conning & Co. study.

On the consumer side, people have become much more aware of their mortality, said George McKeon, assistant vice president at Conning & Co. and editor of the study. In the past, insurance was often issued for tax-avoidance reasons, but now consumers are buying for mortality risk reasons as well, he said.

Even before Sept. 11, the life reinsurance industry faced challenges in customer expectations, intense competition, regulatory constraints and pervasive change, McKeon said. But the changes in the industry since then have made the convergence and combined effect of these four factors more important than before, he said.

In group life, the events of Sept. 11 have spawned dramatic changes including the sudden constriction of the catastrophic coverage market. ING Re, like many companies, stopped offering catastrophic coverage late in 2001 after the terror attacks.

Before the terrorist attacks, Minneapolis-based ING Re was a major writer of catastrophe reinsurance for group life policies.

In November 2001, Netherlands-based parent company ING Group said it had estimated claims from Sept. 11 of 600 million euro, or $549 million, but the "direct bottom-line impact" on ING Group after catastrophe coverages and taxes was 100 million euro, or $92 million.

"We've certainly made some changes to our product offerings," agreed Mike Emerson, the newly named president of ING Re's group life, accident and health reinsurance operation. "We've exited certain lines--predominantly the catastrophe line--and we're focusing on core products in the United States and Canada. "These include medical and managed care, group life, accident, and longterm disability reinsurance.

Losses related to Sept. 11 weren't the only reason for exiting but were a factor in the decision, the company said. The chief reason was the volatility associated with this business, a condition that the company was unwilling to accept after Sept. 11, Emerson said. In addition to the volatility, tracking expenses in catastrophic coverages is extremely difficult, which also contributed to ING's decision.

Just as some companies are exiting this market, others are viewing this as the time to get in, Emerson said. "Capacity is a fraction of what it once was, but there are definitely some new players," he said. Before Sept. 11, the accident and health industry had a catastrophic capacity of $1 billion. That dwindled to $150 million by mid2002, Emerson said.

"This has become an extraordinary transitional year," he said. "Certainly, a lot of capacity has left the market, and some of it has been replaced with offshore carriers."

Demand Shifts

During 2002, the market has been changing on almost a daily basis, leaving risk managers to assess just what their options are, Emerson said. "We have an evolving industry and a client base dealing with a new reality: What's available on the reinsurance market?"

Primary group life writers mainly buy two types of reinsurance-excess group life reinsurance and catastrophe reinsurance.

Excess group life reinsurance is bought on a per-person basis. If a primary insurer has a $750,000 policy on an individual, it may retain $500,000 of the exposure and reinsure the remaining $250,000 with a company like ING Re, which still writes this type of reinsurance.

Catastrophe reinsurance, designed to protect the primary writer's financial results against multiple deaths from a single event, is the other form of reinsurance most often purchased by primary writers, and the one that has seen the most change, industry experts say.

Primary insurers are seeing less capacity, drastic price increases, new exclusions and limitations with catastrophe reinsurance.

Like their property/casualty counterparts, group life reinsurers are asking for more information when they underwrite policies-in the life reinsurers' case, the location of employees. Underwriters now are looking closely at hitherto unexamined aspects, such as the possible drawback of having all of a company's employees located in one building rather than spread out in several locations.

The qualities that carriers looked for in reinsurers in the past are even more important today, Emerson said. These include financial strength, claims-paying ability and the willingness to engage in discussion of what the reinsurance program can be.

For its part, ING Re expects the primary writers to share some of the risk. "For example, we're able to carve out the accidental death portion in group life on a quota share basis," Emerson said. "We're able to help them manage their retention in a way that allows both parties to share in the underwriting results."

In this post-Sept. 11 era, individual life reinsurance customers are more concerned than ever that the reinsurers they do business with can be relied upon, said Arnold Dicke, senior vice president and head of traditional life reinsurance for ING Reinsurance, Denver. They also want to gain a deeper understanding of the business that they are in, including the risks they face, Dicke said. One offshoot of this is a greater drive to understand mortality.

"Good mortality results were taken for granted by direct-writing companies in the past, but the events of recent times have led them to focus more on that issue," Dicke said, adding that he's seen five or six companies state in recent quarterly reports whether their mortality was high or low. "This increased focus extends even beyond management level--the boards of these companies are paying increased attention to fundamental risks," he said.

On the life side, the reinsurance market is growing much faster than the primary market, said Peter Porrino, global director of Ernst & Young's Insurance Practice. The reason: the primary market is becoming much more focused on driving results through interest rate spread, or, in the annuity business, through fees, he said. "They're basically making it into a fee business and have decided to farm out a lot of the mortality risk," Porrino said. "This makes a carrier less of a life insurance company and more of an asset-management company these days."

Rethinking Mortality

In this continually consolidating market--where the few major players left are competing mainly on price or expertise--ING Re is placing increased emphasis on providing mortality consulting as part of the reinsurance package, Dicke said. ING Re started its mortality research center, which includes academic experts, in 1998. Just recently, it added a group of mortality experts in a new office in Fort Wayne, Ind.

ING Re has a new system that uses 11 factors to estimate a client's mortality. "We look at each factor separately and project it out. The end result of applying these factors to a base mortality table could be a set of tables varying by underwriting class," Dicke said. "The various factors take into account the unique underwriting and market' positioning of each direct-writing company, so you end up with a customized mortality table for each company."

What this means is that a company hoping to keep its pricing in line with increasing costs in reinsurance, or elsewhere, could review the assessments made by its own underwriters and other factors that affect mortality "and more or less tune them up to give the kind of output price the company wants to have," he said. "For example, they might find that by reducing exceptions on a particular underwriting factor, they could get to a much better price."

As direct writers react to cost pressures, mortality consulting has become a growth area for the life reinsurance industry, Dicke said. "We're not unique. Other companies are beginning to do this, too, but we have a bit of a head start on them," he said. "Changing patterns of mortality is an issue that, in its own way, is just as big as the capacity issue in property/casualty."

If customers are looking for reinsurers to trust, reinsurers are looking for clients that really know what they are doing and can deliver the mortality results, Dicke said. "Direct writers can get better reinsurance rates than ever, but where we might have ignored some deficiencies in underwriting in the past, we're not as likely to do that anymore," he said.

About 90% of ING Re's individual business is traditional reinsurance, with the rest stemming from corporate-owned life insurance, bank-owned life insurance and critical illness.

Emerson predicted that-barring another catastrophe--2002 will turn out to be "a pretty decent year" for the life reinsurance market, although some carriers will ring out the year still grappling with issues of the past that even a hard market can't eliminate. But 2003 and 2004 hold much promise and the market should fare better then in terms of profitability, he said.
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Comment:Reinsurance rebournd. (Industry Strategies: Top Reinsurers By Line).
Author:Bowers, Barbara
Publication:Best's Review
Geographic Code:1USA
Date:Aug 1, 2002
Words:15018
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