Royalton Capital Investors II, L.P.
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Transcript Royalton Capital Investors II, L.P.
CertAsig and Marine Underwriting in Turkish Market
James Grindley - CEO
Istanbul, 28th March 2011
Who is CertAsig?
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CertAsig is a specialist, non-life insurance company licensed by the Romanian Insurance Supervisory
Commission (CSA)
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Ultimate investors include: European Bank for Reconstruction & Development (EBRD) & European
Investment Fund (EIF)
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Our business model is to work primarily with insurance brokers and to target corporate SME clients
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CertAsig focuses on ‘more technical’ and specialist insurance products
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Avoid chasing market share – a common strategy of ‘top 10’ insurers in Romania
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Romania is our core market but expansion to other CEE countries will be considered carefully - Turkey is
already an important market for marine
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CertAsig team includes 45 insurance professionals with 6 offices – the team is dedicated to brokers and
clients
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CertAsig intends to obtain a rating from a market-respected rating agency
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Shareholder structure
• Majority owner (92%) of CertAsig is European private equity fund
Royalton Capital Investors II (“RCI II”), managed by Royalton
Partners
• Main investors in RCI II are:
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European Bank for Reconstruction & Development (EBRD)
European Investment Fund (EIF)
Various pension funds & other banks
CertAsig Management
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Specialist products
Commercial & Industrial Property Insurance (All Risks with optional Business Interruption)
Construction, Plant & Machinery Insurance
Motor CASCO Insurance
Electrical Equipment Insurance
Contractors All Risks (CAR)
Bond Insurance
General Third Party Liability, Employer’s Liability Professional Liabilities
Goods in transit / cargo
Marine Insurance (ships, vessels, hull& machinery, Protection & Indemnity)
General Aviation Insurance (private jets, helicopters)
Medical mal-practice
Event insurance
Health Insurance
Personal Accident Insurance
Household insurance (buildings, contents & liabilities)
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Evolution of portfolio by Gross Written Premium
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Marine Insurance is a broker-driven market
Ship-owners and managers generally use specialist brokers to obtain
insurance
Marine insurance brokers earn commissions between 15% to 25% of
Gross Written Premium
Leading insurers for Turkish market include:
Turkish insurers
Lloyd’s Syndicates & London market
Russian & European insurers
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Marine products and underwriting criteria for Turkey
Products
Underwriting Criteria
Hull and Machinery for blue
and brown water vessels
All vessels underwritten on a case-by-case basis; underwriting authority is
never delegated
Protection and Indemnity for
small and medium vessel (big
oil tankers excluded)
Background / experience of operator, skipper (yacht insurance), shipyard,
ship repairer, are checked before quoting
Builder’s risks
Ship repairers’ liability
Pleasure crafts
Bucharest and Constanta offices are active in selling marine business
Core target business is CEE, Turkey, Black Sea-domiciled managers /
operators / owners but all European managed vessels considered
Pre-entry condition survey is required for vessels older than 10 years,
rendered by underwriters’ agreed surveyors
Port authority / operator liability
Loss record for previous 3-5 years is required and checked; tighter terms and
conditions or cover refused for business with high loss record
Cargo / fine art
Terms and conditions used are similar to London wordings
Specie and cash in transit
Terms are calculated using benchmark London market indications, facultative
reinsurance terms regularly obtained for comparison
Cargo liability (CMR)
Restrictive terms offered for over age vessels , Cl. 280 FPA ucb, Cl. 284 or
Cl. 289 at underwriters’ discretion or higher additional machinery deductibles
imposed
Fast response to brokers, usually same day – significant differentiator in the
market
English law and jurisdiction is preferred; however local jurisdiction of original
assured could be accepted
CertAsig is a quoting market with at least 80% of business underwritten
100%.
Marine Business
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Reinsurance
Key points
Security
Marine Reinsurance Programme is underwritten by:
Lloyd’s, Hannover Re, Flagstone Re & other reinsurers with rating of A- or better
Marine Hull, Protection & Indemnity, Cargo & General Aviation
Non-proportional excess of loss treaty
Capacity up to USD 10,000,000 (USD 9,750,000 xs USD 250,000)
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Reinsurance
THANK YOU FOR YOUR ATTENTION !
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