Broker and Market Update

Transcription

1 Broker and Market Update September 2, Market Street, Suite 1207 Jasmine Court, Camana Bay, Grand Cayman, Cayman Islands Tel:

2 Key Facts Publicly traded - listed on the Nasdaq Ticker: GLRE Domiciled in the Cayman Islands On the OECD White list Strict anti-money laundering / KYC regulations Offshore entity required to post statutory collateral in the U.S. A.M. Best A- rated since August 2006 $615M in Surplus as at June 30, 2009 Approximately 60 transactions bound representing roughly $880M net written premium between January 2006 and July % of brokers with whom we have worked on a deal, have gone on to present us with further opportunities Advantage over competitors immediate access to decision makers, speed and flexibility, dry powder 2

3 Proven Underwriting Track Record Premium volume on frequency transactions bound ranges from $10M to $135M Not LOB orientated Fluid portfolio of exposures driven by market conditions and client needs Small team of generalist underwriters As at July 2009, portfolio includes: Professional Liability - Medical Malpractice, D&O, E&O (specialists) General Liability Workers Compensation - working layer and primary Personal lines Medical Stop Loss self-insured medical Commercial Auto Property Cat Retro Casualty Clash Current focus on frequency business By premium volume, the 2009 portfolio is split (as at June 2009): 90% frequency driven business 10% severity driven business 3

4 What Have We Written? Traditional and structured business tailored to a client s unique/specific needs Preferance to take 100% cession. 80% of transactions bound are non-syndicated Continuously looking to enter / expand into new business areas and opportunities Examples of the range of structures currently in place, include, among others: Fronted MGA business (non-standard auto, WC, GL, commercial auto, medical stop loss) Quota share of single state or regional insurance companies to provide capital relief as well as risk transfer Multi-year stop loss for mono-line specialists or niche underwriters looking for capital protection Reinsurance of captives various structures Multi-year aggregate XOL Casualty clash for systemic risks (retro) Catastrophe XOL (single shot or reinstateable), quota share or aggregate (UNL retro) Multi-class clash of retentions cover 4

5 Examples Medical Malpractice Aggregate Stop Loss capital flexibility Per risk XOL for a new company with capital constraints that was looking to grow As the company developed, the requirement for a per risk XOL diminished, but the need to protect capital grew as the company expanded into new States Program was converted to a 3 year Aggregate Stop Loss Relationship means more than just renewing at the same terms Non Wind QS enabling client to take advantage of improving market conditions Single state homeowners writer $130M Quota Share 2 year term Balance sheet deleveraging allows cedant to manage premium to surplus Highly structured transaction Fast turnaround; submission to contracts in less than 6 weeks 5

6 Examples Multi line Quota Share control your own destiny MGA with own insurance company Complex sizeable transaction including reinsurance retrocession and investment, which, along with our guidance, allowed previously unrated company to: progress to next stage of development as A- rated entity; and to acquire licenses in new States 5 year term provides long-term stability for client WC/GL/AL purely traditional quota share 85% QS - Required producer to have skin in the game Gross annual premium $44M; expected to grow to gross annual premium of $100M+ 6

7 Business Written = Quality, Not Quantity We desire: transactions that are large enough to be integral to buyer / seller high frequency, low severity business preferable clients that are experts in their field niche lines of business opportunities that require thought and insight We focus on: the opportunity to form a partnership rather than focusing on the LOB underwritten the economic downside of a transaction rather than the premium generated mutual alignment of interests This results in: disciplined risk selection process And creates: non commoditized, customized solutions (not all transactions are heavily structured) innovation, creativity and partnership longevity 7

8 Contact Info 65 Market Street, Suite 1207 Jasmine Court, Camana Bay Grand Cayman, KY Cayman Islands Tel: Fax: Bart Hedges, President and CUO Andie Welsch, Vice President, Marketing 8