Catlin opens in Switzerland

Catlin is to form a reinsurance company in Switzerland to expand its European-based reinsurance business.

It has applied to the Swiss Financial Market Supervisory Authority (FINMA) to establish Catlin Re Switzerland. It will have capital of at least $1bn from internal resources and will initially underwrite specialty reinsurance business “for which market conditions are favourable”.

Catlin will also apply to the Bermuda Monetary Authority to establish a Bermuda-based branch of Catlin Re Switzerland. The Bermuda branch will initially underwrite reinsurance of various Catlin Group subsidiaries, business that is currently written by Catlin Insurance Company (Catlin Bermuda).

Catlin's existing Bermuda portfolio of open market insurance and reinsurance will continue to be underwritten by Catlin Bermuda.

European expansion

Catlin said: “The formation of Catlin Re Switzerland is a major development in the Group's European expansion strategy. Whilst the marketplace is currently competitive for most classes of European property/casualty business, the formation of Catlin Re Switzerland will allow the Catlin Group to quickly take advantage of favourable opportunities as they arise in the European reinsurance market, including opportunities created as the result of the forthcoming Solvency II regulatory regime.

Catlin Re Switzerland will expand its portfolio of treaty reinsurance business, concentrating on risks and areas of distribution that are not currently underwritten elsewhere within the Catlin Group. It will recruit local underwriting teams.

Paul Brand, chief underwriting officer of the Catlin Group, will assume the additional role of chief executive officer of Catlin's European Operations. Reporting to Paul Brand will be Ralf Tillenburg, currently CEO of Catlin's European Hub in Cologne, who will become CEO-European Direct, as well as a CEO-European Reinsurance, whose appointment will be announced soon.

Cologne and Zurich

Catlin's European insurance operations will report to Ralf Tillenburg in Cologne, whilst the CEO European Reinsurance, who will be based in Zurich, will be responsible for Catlin Re Switzerland as well as the existing reinsurance operations of Catlin's European offices.

Stephen Catlin, chief executive of Catlin Group, said: "I am happy to announce that Catlin has applied to Swiss regulatory authorities for permission to establish a reinsurance company headquartered in Zurich, which will significantly expand the Catlin Group's presence in the European marketplace. Our ambition is to build Catlin Re Switzerland over time to become a leading European specialty reinsurer.

"The specialist classes of business to be initially underwritten by Catlin Re Switzerland will expand the portfolio of similar business now written by Catlin by focusing on high-quality European risks at a time when market conditions are favourable for these business classes.

Additional classes of business

"Catlin Re Switzerland will expand over time to write additional classes of business, in line with Catlin's successful practice of organically growing international operations by attracting underwriting teams whose values and practices are in consistent with Catlin's.

"The formation of Catlin Re Switzerland will complement existing Catlin-owned insurance carriers in the United Kingdom, Bermuda and the United States and will offer the Group additional capital flexibility."

The initial classes of business to be underwritten by Catlin Re Switzerland will include trade credit reinsurance, political risk reinsurance and surety reinsurance.

New staff

Joining Catlin Re Switzerland will be Underwriting Directors Martin Hochstrasser and Markus A Eugster.

Martin Hochstrasser was most recently Executive Director at EFG Financial Products in Zurich. He was previously a Managing Director at Swiss Re with key responsibilities in credit and surety reinsurance, trade finance, political risk and structured credit underwriting. He also held positions with Swiss Bank Corporation.

Markus A Eugster most recently was the Principal of MA Eugster Consulting, which held mandates for Atradius Italy and UK investment management firm Channel Capital Advisors LLP. He had previously held Managing Director positions with Swiss Re, including Global Head of Bank Client Relationships as well as Head of Origination and Business Development and Senior Underwriter in Swiss Re's Credit Division. He has also held positions with Credit Suisse in Latin American commercial banking and structured trade and project finance.