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10/15/2012
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2012 NAPSLOA T L A N T A , G A
Catastrophe Underwriting Specialist
OVERVIEW
AmRisc Update
Market Conditions/Forecast
Elite Producer Statistics
www.amrisc.com
10/15/2012
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Update
• Overall Stats• Capacity Providers• Product Development
www.amrisc.com
Overall Stats
www.amrisc.com
As the largest CAT-focused MGU in the United States, AmRisc is YOUR market for catastrophe-exposed risks.
Insuring over $100 Billion TIV with over 6,000 middle-market policies in-force.Loss Ratio has outperformed E&S market by over 50%.
E&S Occupancies Covered E&S TIV by State
Apartments34.1%
Real Estate20.9%
Munis & Schools
13.5%
Condos13.6%
Industrial & Manufacturing
12.8%
Florida43.1%
Texas27.7%
Georgia, NC, SC
8.7%
Alabama, Louisiana, Mississippi
16.1%
Other 4.4%Other 5.1%
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Overall Stats
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2005 2006 2007 2008 2009 2010 2011 2012
E&S ACIC Projected E&S Projected ACIC
$587.6MYTD
Sept. 2012
www.amrisc.com
Written Premium
Total E&S ACIC
Wholesale 85% 95% 70%
Retail 15% 5% 30%
Premium Source
Capacity Providers
www.amrisc.com
AM Best A
Manage over $2.5 Billion PML capacity from top-rated Catastrophe markets
AM Best A+AM Best A
Demotech A’ Unsurpassed AM Best A
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Product Development
More PML capacity ($150M added)
Additional carriers
Re-launched GL product
Cal EQ
DIC Flood/EQ
AmRisc Online (roll-out 2013)
www.amrisc.com
Target Business and Capacity
Occupancy Target TIV Coverage Available
Coastal Commercial PropertyReal estate, apartments, condo associations, retail, offices, lessor’s risks, self-storage warehouses, HPR, hotels, restaurants and other general property classes
Up to $2.5 billion per account Full-value up to $100 million per riskLead primary or lead quota-share participation – up to $100 million Cat capacity – per risk
Coastal Public Entity $5 million to $2.5 billion per account Lead primary or lead quota-share participation – up to $100 million Cat capacity – per risk
Coastal Builder’s Riskcommercial, residential, and public buildings up to 24 months
$5 million to $100 million 24-month term; $50 million per risk, except $25 million per risk wind capacity
TECH – Industrial and Manufacturingplastics, wood, metal, food, textile, electrical, oil and gas, chemical warehousing
$5 million to $500 million Full-value up to $100 million per risk
Admitted Product for Florida Condo Associations – American Coastalgarden style, mid-rise, or high-rise
Condos $1 million to $100 million
Full limits on ISO form-based policy
Force Placed Foreclosed Program for Banks and Financial Institutionscommercial, residential, and vacant risks on monthly reporting form
Mid-size community and regional banks
$10 million per location$1 million occurrence/$2 million CGL (REO only)
Flood: DIC-Flood Excess of NFIP and Primary Flood CBRA Zones
Single-location accounts up to $100 millionTargets high-valued dwellings
$10 million per location; higher limits available for condos excess of NFIP RCBAP
General Liability Written with Property or stand-alone real estate, habitational, lessor’s risk, offices and retail
Follows property risk target General Agg $2M/ $1M Occurrence on ISO form-based policy
California EarthquakeReal estate, apartments, condo associations, retail, offices, lessor’s risks, self-storage warehouses, and other general property classes
Up to $2.5 billion per account Primary, quota-share or first excess – up to$25 million Cat capacity per risk
www.amrisc.com
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Market Conditions/Forecast
• 2011• 2012• Forecast
www.amrisc.com
2011 – CAT Losses
www.amrisc.com
Global Extraordinary number of severe catastrophes: earthquakes,
tsunami, floods, and tornadoes
$105B insured losses
2011 losses were 2.5 times 2010 insured losses
U.S. $35.9B insured losses arising from 171 CAT events
5th highest year on record
Represents 51% increase over the $23.8B total in 2010
Source: Munich Re; Insurance Information Institute
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2011 – Market Conditions
www.amrisc.com
Capital/capacity Fell only 1.6% in 2011 due to CATs
Limited excess capital in reinsurance markets – costs increased
RMS11 constrained capacity and increased capital needs in some areas
Underwriting Commercial lines pricing trended higher due to CAT model
changes and tight reinsurance market
Reserve releases continued and marginally improved ROEs
Source: Barclays Capital; Insurance Information Institute
January - July 2012 – CAT Losses
www.amrisc.com
Lower CAT losses YTD Insured losses are well below first-half 2011 and 10-year average and are on par with 30-year average
Globally - $12B insured loss
U.S. - $9.3B insured loss
Hurricane Isaac losses are estimated up to $2B and are not included in total above
$8.8B of total is from thunderstorm (tornado & hail) activity
No significant earthquakes worldwide
Minor tropical activity overall
Source: Munich Re; Insurance Information Institute
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2013 – Market Predictions
www.amrisc.com
Capacity Negligible change in availability
Higher scrutiny on use of capital
Cost of capital remains high
Underwriting discipline Growth in sophisticated price monitoring and U/W tools
Pricing trends slightly up
Meager investment returns will require strong U/W profit
Elite Producer Statistics
Company Name
www.amrisc.com
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www.amrisc.com
Houston, TX
20405 SH 249, Ste 430Houston, TX 77070281.257.5100Toll Free 888.919.8142
Morehead City, NC
3710-A John Platt DriveMorehead City, NC 28557252.247.8760Toll Free 877.284.4900
Birmingham, AL
One Metroplex Drive, Suite 230Birmingham, AL 35209205.414.2361
Stamford, CT
4 Landmark Square Ste, 301Stamford, CT 06901203.658.9150
Davie, FL
351 SW 136 Ave, Ste 201Davie, FL 33325954.889.3384
Atlanta, GA
2500 Northwinds Pkwy, Ste 225Atlanta, GA 30009770.557.0037
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