Transcript Market Presentation: Germany
Why Lloyd’s?
Lasting the tests of time
Adrian Humphreys COUNTRY MANAGER May 2011
> www.lloyds.com/MARKETPRESENTATIONS
Lloyd
’
s Platform Lloyd
’
s key strengths Lloyd
’
s Australia 2010 Catastrophes Conclusions
© Lloyd’s 4 5 1 2 3
Lloyd’s platform
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LLOYD’S UNIQUE ENVIRONMENT
>
Brief history
>
Key players
© Lloyd’s
LLOYD’S Business > History
From Coffee House……to Lloyd’s Members
1689
Ships and goods insured by wealthy individuals acting on a personal basis.
Lloyd’s Coffee House; first recorded February 1689.
1800 – 1850s
Development of syndicates
Present Day
iPhone Historical Context
1712 First steam engine 1750s Beginning of the Industrial Revolution 1805 Battle of Trafalgar
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Lloyd’s business > Subscription market
“to be the platform of choice for insurance and reinsurance buyers and sellers to access and trade specialist property and casualty risks ” . 2 © Lloyd’s
© Lloyd’s
© Lloyd’s
Lloyd
’
s market structure
Policyholders
Direct
Reinsurance
Coverholders
178 Lloyd’s Brokers Service Companies* Corporation of Lloyd’s Management 54 Managing Agents 82 Syndicates Underwriting
Members Agents
Members
Corporate
Individual BUSINESS FLOW CAPITAL PROVISION SEE: www.lloyds.com/directories
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key strengths
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LLOYD’S PLATFORM
Security
Brand
Expertise & Flexibility
Licences
© Lloyd’s
Lloyd’s strengths > 4 key strengths
“to be the platform of choice for insurance and reinsurance buyers and sellers to access and trade specialist property and casualty risks ” . 2 •
Lloyd’s platform key strengths:
•
Security and rating
•
Brand and reputation
•
Expertise and flexibility
•
Licence network
© Lloyd’s
Lloyd’s > business Results
“Solid results in challenging circumstances”
£m
Gross written premiums Combined ratio Investment return Profit before tax Return on capital (pre-tax) 2009 21,973 86.1% 1,769 3,868 23.9%
2010 22,592 93.3% 1,258 2,195 12.1%
© Lloyd’s
Lloyd’s > chain of security
“Insurance is a promise to pay”, understanding the security behind your policies is vital when securing your clients future © Lloyd’s
…and our performance compares well against our peers
COMBINED RATIO
% 120 100 100
102
99
101
94
95
86
93
84
91
80 60 Lloyd's US P/C Industry (i) 2006 US Reinsurers (ii) 2007 2008 2009 European (Re)Insurers (iii) 2010 Bermudian (Re)Insurers (iii)
Sources i) Insurance Information Institute (estimate-2010), ii) Reinsurance Association of America, iii) Company data (8 European companies: 17 Bermudian companies)
© Lloyd’s
Lloyd’s strengths > Ratings
Lloyd’s strengthened position is recognised by the rating agencies
S&P rating actions since January 2002 Lloyd’s IFS rating has been upgraded to A+, despite downgrades in the wider market
2 Upgraded Unchanged Downgraded Negative outlook © Lloyd’s Sources: Source: AM Best, Fitch and S&P, 2009
Lloyd’s strengths > Brand
“I applaud Lloyd’s, which tops the [ in.”
insurance
] category and also secures its highest position in the survey ever. Whilst being highly rated in this survey is pleasant news for the respective brand owners it is also an indicator of their business’s ability to grow through a brand that stakeholders, trust, want and believe Stephen Cheliotis, Chairman of the expert council & CEO, The Centre for Brand Analysis: 2 © Lloyd’s
Lloyd’s strenghts > Flexibility
Flexibility, Underwriting Freedom and Extra Capacity were given as the 3 biggest advantages of being a coverholder for Lloyd’s 2 Source: Lloyd’s US MGA Survey © Lloyd’s
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Lloyd’s Australia Ltd
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INSURANCE ENVIRONMENT
> > Lloyd’s Office Networking > Regulation & Compliance
© Lloyd’s
LLOYD’S in Australia > Timeline
Australia is Lloyd’s 4 th largest market… Growth has been steady over the past 10 years
New legislation formally authorises Lloyd’s to underwrite Insurance Business in Australia
April
Lloyd’s Australia opened as permanent office & Steve Boucher appointed full-time Lloyd’s General Representative for Australia 1973 1980
Lloyd’s Legal Representative appointed:
“ 1980 Ian Hutchinson, appointed Lloyd’s General Representative in Australia 1989 1999
December -
Keith Stern appointed Lloyd’s Country Manager for Australia May 2010
New Lloyd’s Australia Manager
“Adrian Humphreys joins Lloyd’s Australia as the Country Manager
© Lloyd’s 4
Market Overview >Market Players
High concentration amongst few players - top 5 account for approx.
87%
Lloyd’s is currently ranked as
5th
in terms of GWP. of total Australian Premiums 1 19 © Lloyd’s
Lloyd’s >Agency distribution overview
LLOYD’S COVERHOLDERS 2007 – 2010 Total GSP for Agencies (USD)
1 2 3
Important source of income Accessing smaller business lines and facilities Strategic importance of this channel SOURCE:
Lloyd’s Strategy 2010 -2012, www.lloyds.com/strategy
700 600 500 400 300 378 404 424 614 200 100 0 2007 2008 2009 2010 SOURCE:
Market Intelligence based on Gross Signed premiums; Xchanging (2010)
2006 – 2010 Number of Binder by Class Aviation Casualty Energy Marine Motor PA & Health Property Grand Total 2006 0 108 6 31 7 19 118 289 2007 0 98 4 24 9 23 120 278 SOURCE:
Lloyd’s, Delegated Authority, (2011)
2008 0 134 4 29 8 29 129 333 2009 0 202 4 41 13 40 132 432 2010 1 206 2 28 13 36 136 422 2006 – 2010 Total # of individual Agencies 100 75 62 64 71 79 78 50 25 0 2006 2007 2008 SOURCE:
Lloyd’s, Delegated Authority, (2011)
2009 2010
!
Lloyd © Lloyd’s
Lloyd’s > Lloyd’s Australian Agencies
Lloyd ’s agencies and service companies you may recognise…..
2 AFA Affinity Risk Partners Brokers CBD Underwriting Celestial Underwriting Agency AIS Insurance Brokers Altiora Insurance Solutions Aon Risk Services
Arch Underwriting at Lloyd ’s
Asia Mideast Insurance & Reins. Coverforce Underwriting ASR Underwriting Agencies ATC Insurance Solutions Aurora Underwriting Agency Ausnet Underwriting Agency Austagencies Cerberos Brokers Cerberus Special Risks CKA Risk Solutions Columbus Direct Travel Ins. Dolphin Insurance Dual East West Insurance Brokers Elkington Bishop Molineaux Epsilon Insurance Broking Austbrokers RWA Austbrokers Sydney Australian Income Protection Services Fenton Green & Co Film Insurance Underwriting Australian Reinsurance U/w Svs Agencies Australis Group Underwriting Austruck Insurance Axis Underwriting Services
Beazley Underwriting
Bizcover
Brit Insurance
Brooklyn Underwriting Brooks Inglis Insurance Brokers
Catlin
Fitton Insurance Brokers Freeman McMurrick General Security Insurance Brokers Gow-Gates Insurance Brokers Guardian Underwriting Services High Street Underwriting Agency Hiscock Insurance Brokers Horsell International H W Wood IBL Indemnity Corporation Insurance Advisernet Insure That International Underwriting Svs Jardine Lloyd Thompson JMD Ross Insurance Brokers JUA Underwriting Agency Lawsons Underwriting Australasia Logan Livestock Insurance Agency London Underwriting Macquarie Underwriting Magic Millions Insurance Brokers Mansions of Australia Manufactured Homes Ins Agency Marsh Midas Insurance Brokers Millennium Underwriting Agencies Miller & Associates Ins Broking Miramar Underwriting Agency Mobius Underwriting National Underwriting Agencies Nautilus Marine Insurance Agency
Newline Insurance
Newmarket Insurance Brokers Nova Underwriting Online Insurance Brokers Parmia PI Direct Insurance Brokers Professional Risk U/w QBE Placement Solutions Resource Underwriting Pacific Richard Oliver Risk Insure Southern Cross Underwriting Transcorp Underwriting Tasman Underwriting Sterling Insurance Savannah Insurance Agency SLE Worldwide
Sportscover
SRS Underwriting Agency
Starr Underwriting
Trafalgar Risk Management Trident Insurance Group Trinity Pacific U/w Agencies Willis Winsure Insurance Group Market Intelligence based on: Lloyd’s 2007 - 2010 Statistics in Gross Signed Premiums © Lloyd’s
Lloyd’s > Agencies by geography
http://www.lloyds.com/Lloyds/Offices/Australasia/Australia/Lloyds-in-Australia 2
Casualty Energy MAT Motor PA & Health Property Grand Total 2010 Western Australia 3 0 0 1 0 2 6 Casualty Energy MAT Motor PA & Health Property Grand Total 2010 South Australia 1 0 0 0 0 2 3
Market Intelligence based on: Lloyd’s 2007 - 2010 Statistics in Gross Signed Premiums
Casualty Energy MAT Motor PA & Health Property Grand Total 2010 Queensland 6 0 1 3 3 5 18 Casualty Energy MAT Motor PA & Health Property Grand Total 2010 NSW 33 0 4 3 10 21 71 Casualty Energy MAT Motor PA & Health Property Grand Total 2010 Victoria 10 0 1 0 5 10 26
© Lloyd’s
Lloyd’s Australia >Purpose
Promote and protect the Lloyd’s brand in Australia Gateway to Australian
and facilitate the development of new relationships.
market with broad expertise available to assist in business development activities. 5
AUSTRALIA TEAM General Representative: Adrian Humphreys Compliance Manager: Tracey Bryan Office Manager: Martina Lee RELATIONSHIP FACILITATOR
> Meet and engage with managing agent representatives ,
underwriters and brokers
in London; > Assistance with
local market intelligence
; >
Networking events/promotional & sponsorship activities
; >
Facilitate introductions for new business
; >
Point of contact
and primary Lloyd’s market resource.
BRAND PROMOTION & PROTECTION
> >
Promote the profile
of the Lloyd’s brand; Ensure general interests of Lloyd’s are served;
Legislative and regulatory compliance
23 with the law.
OFFICE FACILITIES View from Lloyd ’s Australia Office window – Feb 2011
Meeting Room available
Teleconferencing system SEE ALSO: www.lloyds.com/AUSTRALIA www.lloyds.com/MARKETINTELLIGENCE
© Lloyd’s
ACCESSING LLOYD’S > 2011 Lloyd ’s Priorities
The 2011 Priorities of Lloyd ’s have been identified as follows:
• Performance management - A resolute focus on underwriting discipline and risk management • Solvency II - Implementing Solvency II at Lloyd’s in a way that protects, and where possible, enhances Lloyd’s capital structure and efficiency • The Exchange - Increasing adoption and use of The Exchange • Claims Transformation - Driving a transformation in the way the Lloyd’s market handles claims to enhance the experience of the customer • Access to business - Improving access to business through streamlining Underwriting Agency management strengthening broker relationships and gaining new trading rights © Lloyd’s Source: Market Review Report, 22 nd June 2010, Lloyd’s Analysis Team
catastrophes
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INSURANCE ENVIRONMENT
>
Context
> >
Distribution Overview Establishment Offices
© Lloyd’s
Catastrophes >Protocols
Lloyd’s
and the
ICA
have established
protocols
for the catastrophes which have occurred in the
last year .
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LLOYD’S
• Lloyd’s Cat Response Panel • Lloyd’s Australia set up freephone number and dedicated email
2010 Annus Horribilis
•Project Horizon, Perth Windstorm, Melbourne Hailstorm, Chile •Recent Australian cats, $92m incurred claims Current total net estimates are: •US$ 650m - Australia flooding •US$ 1.95bn - Japan earthquake and tsunami •US$ 1.2bn - New Zealand earthquake
INFORMATION ON LLOYD ’S.COM
DEDICATED HELPLINE UNQIUE EMAIL CONTACT INFORMATION FOR ALL A PRIORITY FOR LLOYD’S
© Lloyd’s
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Conclusions
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© Lloyd’s
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