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CLASS REVIEW. Find out more about Lloyd’s position in the US, Brazil, Mexico & Turkey. August 2012. > www.lloyds.com /classreview. AGENDA. Have you ever wanted to compare Lloyd’s business profile with that of competitors?. > We have developed Class Review to help you do this effectively. - PowerPoint PPT Presentation
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CLASS REVIEW
August 2012
Find out more about Lloyd’s position in the US, Brazil, Mexico & Turkey
> www.lloyds.com/classreview
> We have developed Class Review to help you do this effectively
Have you ever wanted to compare Lloyd’s business profile with that of competitors?
In this presentation we want to:
1. Help you understand what is Class Review
3. Explain how we have created Class Review
2. Explain what you can find in Class Review
4. Present examples of how you can use Class Review
AGENDA
CHOOSE SURGERY SESSION Turkey
> US Surplus Lines Market Brazil Mexico
CLASS REVIEW
May 2012
Find out more about Lloyd’s position in the US
> www.lloyds.com/classreview > Back to Agenda
WHAT IS CLASS REVIEW? Class of Business Analysis by Territory
Comparison of Lloyd’s vs. Competitors
Market Share Analysis
Downloadable Triangulations
BENEFITS
US Pilot: Top 4 States + Total US
Compares Lloyd’s with its core competitors
Mapping of Lloyd’s specialty classes
Data reviewed by market participants
Insights on relevant business information: premiums, market shares & incurred loss ratios
>www.lloyds.com/classreview
Managing Agent, Broker and Coverholder Versions available on
What can you find in the Broker & Coverholder Version of Class Review?
BROKER & COVERHOLDER VERSION
Brokers & Coverholders have access to the following documents:
US Lloyd’s Coverholder Map (PDF)
Market Reports (PDF)
1
1
> Pilots for Top 4 US states and for the Total US
Total US
California
Florida
New York
Texas
2
2
2
2
2
2
BROKER & COVERHOLDER VERSION
What sections are available in the Market Report?
> The Market Report contains 3 sections.
MARKET REPORT
Aggregateoverview and benchmark
analysis
(Lloyd’s vs. the market)
Premium trends
Key Competitors
Premium by class of business
Incurred loss ratios
Major business classes
benchmark analysis
(Lloyd’s vs. the market)
Premium trends by class of
business
Key competitors by
class of business
Incurred loss ratios by class of business
Specialty classes
in depth analysis
Premium trends & incurred loss
ratios* by specialty
class of business
Market Intelligence Team
How have we created Class Review?
1 Finding the best market information with a class of business breakdown with the help of…
Regulator Associations
Third Party Information Providers
Lloyd’s Country Manager
Market Practitioners / LMA Feedback
2 Mapping market classes of business… …with Lloyd’s classes of business
Finding commonly used class of business descriptions, which can be used to benchmark Lloyd’s with the market
MARKET MARKET MARKET MARKET MARKET
Comparing Lloyd’s with the rest of the market at a class of business level
3
METHODOLOGY
BENEFITS
Compares Lloyd’s with its core competitors
Mapping of Lloyd’s specialty classes of business
Insights on relevant business information: premiums, market shares & incurred loss ratios
Data reviewed by market participants
*Incurred loss ratios and underlying data are only available for Managing Agents*Incurred loss ratios and underlying data are only available for Managing Agents
California E&S Class Review
Lloyd’s business represented approximately 18% of the E&S market in California in 2010.
Premiums present a declining trend. However, this decline is less dramatic for the Lloyd’s market.
BENCHMARKING TOOL
Illustrates Lloyd’s footprint in a specific market.
HOW DOES THIS BENEFIT ME?
Class Review illustrates the importance of the Lloyd’s market in a particular territory…
How has Lloyd’s market share evolved over the past 5 years?
California E&S Class Review
Lloyd’s underwrote a larger proportion of Property business than the market average in California during 2010.
BENCHMARKING TOOL
HOW DOES THIS BENEFIT ME?
Class Review exposes particularities of the Lloyd’s market in a specific territory at a high level…
Which classes of business does Lloyd’s specialise in?
Illustrates the market versus Lloyd’s class of business breakdown.
California E&S Class Review
Lloyd’s has maintained its 24% market share in the Californian Property market during the past 5 years.
BENCHMARKING TOOL
Compares Market premiums versus Lloyd’s premiums by class.
HOW DOES THIS BENEFIT ME?
Class Review illustrates the participation of Lloyd’s in a specific business class.
Is a certain business class growing or declining?
How is Lloyd’s participation in a particular business class evolving?
Note: Market business classes from NAIC have been classified to match Lloyd’s business classes.
California E&S Class Review
In 2010, Lloyd’s was the second biggest player in the Property market in California.
Lexington is the market leader with a 27% market share.
BENCHMARKING TOOL
Compares Lloyd’s with its core competitors.
HOW DOES THIS BENEFIT ME?
Class Review reveals Lloyd’s core competitors.
Who are the key players in a specific business class and how are they performing?
BENEFITS
Compares Lloyd’s with its core competitors
Mapping of Lloyd’s specialty classes of business
Insights on relevant business information: premiums, market shares & incurred loss ratios
Data reviewed by market participants
*Incurred loss ratios and underlying data are only available for Managing Agents*Incurred loss ratios and underlying data are only available for Managing Agents
Texas E&S Class Review
Pecuniary Loss is a growing class of business both for Lloyd’s and the rest of the market.
General liability is a declining class of business for the market. Lloyd’s has started to decline in 2010.
Insights on relevant business information.
RELEVANT INFORMATION
HOW DOES THIS BENEFIT ME?
This describes and compares different business classes in a particular territory in terms of premium growth, profitability and competition.
Which is the expected premium growth for a class of business based on historical data?
Which classes of business present better loss trends? Are these in normal ranges?
Which markets are more competitive?
BENEFITS
Compares Lloyd’s with its core competitors
Mapping of Lloyd’s specialty classes of business
Insights on relevant business information: premiums, market shares & incurred loss ratios*
Data reviewed by market participants
*Incurred loss ratios and underlying data are only available for Managing Agents*Incurred loss ratios and underlying data are only available for Managing Agents
© Lloyd’s16
This document is intended for general information purposes only. Whilst all care has been taken to ensure the accuracy of the information Lloyd's does not accept any responsibility for any errors or omissions. Lloyd's does not accept any responsibility or liability for any loss to any person acting or refraining from action as a result of, but not limited to, any statement, fact, figure, expression of opinion or belief obtained in this document.
Disclaimer
© Lloyd’s17
CLASS REVIEW
May 2011
Find out more about Lloyd’s position in Brazil
> www.lloyds.com/classreview > Back to Agenda
WHAT IS CLASS REVIEW? Class of Business Analysis by Territory
Comparison of Lloyd’s vs. Competitors
Market Share Analysis
Downloadable Triangulations
BENEFITS
Brazil Pilot
Compares Lloyd’s performance
by business class with local market
Mapping and English translation of SUSEP classes of business
Insights on relevant business information: premiums, market shares & incurred loss ratios
Data reviewed by market practitioners
>www.lloyds.com/classreview
Managing Agent, Broker and Coverholder Versions available on
1
CLASS REVIEW 2010 Br azil Dir ect vs. Ll oyd’s Total DECEMBER 2011
www.lloyds.com/classreview
© Lloyd’s12
2008 – 2010 Brazil Direct Market Premiums (US$ m)(Non-Life Insurance Premiums on a calendar year basis, gross of RI and acquisition fees)
9906.1
12519.2
15256.2
19238.017895.9
23364.8
0
5000
10000
15000
20000
25000
2005 2006 2007 2008 2009 2010
-100%-80%-60%-40%-20%0%20%40%60%80%100%
Premium 9906.1 12519.2 15256.2 19238.0 17895.9 23364.8
Growth ∆ % 26% 22% 26% -7% 31%
2005 2006 2007 2008 2009 2010
Overview
Source: Market Intelligence analysis based on SUSEP
Source: Lloyd’s Market Intelligence calculations based on Xchanging, country of origin basis
2008 – 2010 Lloyd’s Brazil Gross Signed Premiums (GSP) (US$ m) (Gross Signed Premium on a calendar year basis by country of origin, gross of RI and acquisition fees)
164.7193.9
256.1
0
50
100
150
200
250
300
2008 2009 2010
-100%-80%-60%-40%-20%0%20%40%60%80%100%
Premium 164.7 193.9 256.1
Growth ∆ % 18% 32%
2008 2009 2010
Premium Trends (Calendar Year)
© Lloyd’s15
Overview
2010 Brazil Direct Market Top 10 Players (US$ m)(Direct Insurance Premiums on a calendar year basis, gross of RI and acquisition fees)
Source: Market Intelligence analysis based on SUSEP
Rank CompanyPaid Claims
US$ mGWP US$ m Market Share %
Paid Loss Ratio in %
1 Itau 1354.3 3140.2 13% 43%
2 Bradesco 1480.7 2581.8 11% 57%
3 Porto Seguros 1124.6 2276.9 10% 49%
4 Mapfre 921.4 1972.9 8% 47%
5 Banco do Brasil 670.9 1530.4 7% 44%
6 Sul America 849.5 1488.9 6% 57%
7 Allianz 533.6 1172.3 5% 46%
8 HDI Seguros 527.0 827.3 4% 64%
9 Liberty 460.3 819.0 4% 56%
10 Tokio Marina 365.3 778.5 3% 47%
Brazil Total Non-Life
Competitor Ranking (By Premiums)
What sections are available in the Market Report?
MARKET REPORT
AGGREGATE Overview & Benchmark
Analysis
(Lloyd’s vs. the market)
Premium by class of
business
Key Players
Premiumtrends
© Lloyd’s12
OverviewMajor Classes of Business Breakdown
2010 Brazil Direct Market Premiums(Using SUSEP Major Classes of Business excluding life)
2010 Brazil Total Lloyd’s Premiums(Lloyd’s 10 Classes of Business; Note: no premiums for “UK Motor” and negligible premiums for “Overseas Motor”)
Source: Market Intelligence analysis based on SUSEP
Source: Lloyd’s Market Intelligence calculations based on Xchanging
Property (D&F)18%
Aviation19%
Energy21%
Casualty4%
Marine22%
Casualty Treaty0.4%
Property Treaty14%
Accident & Health5%
Marine & Energy
21%
Pecuniary Loss
0.9%
Aviation0.8%
PA & Health8%
Motor
6%
General Liability1.2%
Cargo
56%
Property
5%
Professional Liability0.6%
© Lloyd’s13
2008 – 2010 Brazil Direct Market Premiums (US$ m)(Non-Life Insurance Premiums on a calendar year basis, gross of RI and acquisition fees)
9906.112519.2
15256.2
19238.017895.9
23364.8
0
5000
10000
15000
20000
25000
2005 2006 2007 2008 2009 2010
-100%-80%-60%-40%-20%0%20%40%60%80%100%
Premium 9906.1 12519.2 15256.2 19238.0 17895.9 23364.8
Growth ∆ % 26% 22% 26% -7% 31%
2005 2006 2007 2008 2009 2010
Overview
Source: Market Intelligence analysis based on SUSEP
Source: Lloyd’s Market Intelligence calculations based on Xchanging, country of origin basis
2008 – 2010 Lloyd’s Brazil Gross Signed Premiums (GSP) (US$ m) (Gross Signed Premium on a calendar year basis by country of origin, gross of RI and acquisition fees)
164.7193.9
256.1
0
50
100
150
200
250
300
2008 2009 2010
-100%-80%-60%-40%-20%0%20%40%60%80%100%
Premium 164.7 193.9 256.1
Growth ∆ % 18% 32%
2008 2009 2010
Premium Trends (Calendar Year)
© Lloyd’s16
Overview
2010 Brazil Direct Market Top 10 Players (US$ m)(Direct Insurance Premiums on a calendar year basis, gross of RI and acquisition fees)
Source: Market Intelligence analysis based on SUSEP
Competitor Ranking (By Premiums)
Rank CompanyPaid Claims
US$ mGWP US$ m Market Share %
Paid Loss Ratio in %
1 Itau 1354.3 3140.2 13% 43%
2 Bradesco 1480.7 2581.8 11% 57%
3 Porto Seguros 1124.6 2276.9 10% 49%
4 Mapfre 921.4 1972.9 8% 47%
5 Banco do Brasil 670.9 1530.4 7% 44%
6 Sul America 849.5 1488.9 6% 57%
7 Allianz 533.6 1172.3 5% 46%
8 HDI Seguros 527.0 827.3 4% 64%
9 Liberty 460.3 819.0 4% 56%
10 Tokio Marine 365.3 778.5 3% 47%
Brazil Total Non-Life
SUSEP MAJOR CLASS OF BUSINESSANALYSIS
Premium & Loss Ratio Trends
(Calendar Year)
Key Players
© Lloyd’s20
144.6
96.3
199.9174.8 172.2
204.8
0
50
100
150
200
250
2005 2006 2007 2008 2009 2010
-100%-80%-60%-40%-20%0%20%40%60%80%100%
Premium 144.6 96.3 199.9 174.8 172.2 204.8
Growth ∆ % -33% 108% -13% -2% 19%
2005 2006 2007 2008 2009 2010
Source: Market Intelligence analysis based on SUSEP
Aviation
Source: Market Intelligence analysis based on SUSEP
2005 – 2010 Brazil Direct Market Premiums (US$ m)(Insurance Premiums on a calendar year basis, gross of RI and acquisitions fees)
175.6%
122.7%
90.3%
36.2%39.2%
145.6%
0%
50%
100%
150%
200%
2005 2006 2007 2008 2009 2010
Loss Ratio 39.2% 175.6% 122.7% 145.6% 90.3% 36.2%
2005 2006 2007 2008 2009 2010
2005 – 2010 Brazil Direct Market Loss Ratio(Loss ratio calculated by dividing incurred losses by Insurance Premiums on a calendar year basis)
2005-2010 Cumulative Loss Ratio 96%
Premiums & Loss Ratios (Calendar Year)
© Lloyd’s21
Source: Market Intelligence analysis based on SUSEP
2010 Brazil Direct Market Top 10 Players (US$ m)(Direct Insurance Premiums on a calendar year basis, gross of RI and acquisition fees)
Aviation
Rank CompanyPaid Claims
US$ mGWP US$ m Market Share %
Paid Loss Ratio in %
1 Mapfre 23.3 66.4 34% 35%
2 Itau 3.9 39.6 21% 10%
3 Bradesco 19.5 29.4 15% 66%
4 Allianz 10.1 23.8 12% 42%
5 Chubb 6.3 9.5 5% 66%
6 Liberty 0.0 7.2 4% 0%
7 Chartis 0.0 5.6 3% 0%
8 Fairfax 2.4 3.7 2% 66%
9 Sul America 5.0 3.0 2% 165%
10 CIA Excelcior 0.1 1.8 1% 7%
Aviation
Competitor Ranking (By Premiums)
*Incurred loss ratios are only available for Managing Agents
SUSEP SPECIALTY CLASS OF BUSINESS ANALYSIS
Premium & Loss Ratio Trends
(Calendar Year)
Key Players
© Lloyd’s74
81.5%9.4%
-48.8%26.3%
215.3%
458.0%
-60%
40%
140%
240%
340%
440%
540%
2005 2006 2007 2008 2009 2010
Loss Ratio 458.0% 81.5% 9.4% 215.3% -48.8% 26.3%
2005 2006 2007 2008 2009 2010
Source: Market Intelligence analysis based on SUSEP
Pecuniary Loss
2005 – 2010 Brazil Direct Market Premiums (US$ m)(Insurance Premiums on a calendar year basis, gross of RI and acquisitions fees)
Source: Market Intelligence analysis based on SUSEP
2005-2010 Cumulative Loss Ratio 74%
2005 – 2010 Brazil Direct Market Loss Ratio(Loss ratio calculated by dividing incurred losses by Insurance Premium on a calendar year basis)
Financial Guarantee/Bond
1.1
3.6
4.7
3.2 3.3
4.1
0
1
2
3
4
5
2005 2006 2007 2008 2009 2010
-100%-80%-60%-40%-20%0%20%40%60%80%100%
Premium 1.1 3.6 4.7 3.2 3.3 4.1
Growth Δ % 227% 28% -31% 4% 23%
2005 2006 2007 2008 2009 2010
Premiums & Loss Ratios (Calendar Year)
© Lloyd’s75
Source: Market Intelligence analysis based on SUSEP
Pecuniary LossFinancial Guarantee/Bond
2010 Brazil Direct Market Top 10 Players (US$ m)(Direct Insurance Premiums on a calendar year basis, gross of RI and acquisition fees)
Competitor Ranking (By Premiums)
Rank CompanyPaid Claims
US$ mGWP US$ m Market Share %
Paid Loss Ratio in %
1 J Malucelli 0.0000 1.8054 44% 0%
2 Sul America 0.0573 0.7853 19% 7%
3 UBF Seguros 0.7263 0.4150 10% 175%
4 Fator Seguradora 0.0000 0.3577 9% 0%
5 CesceBrasil Seguros
0.0000 0.3211 8% 0%
6 Itau 0.1848 0.3019 7% 61%
7 Berkley 0.0000 0.0607 1% 0%
8 CIA Mutual de Seguros
0.0000 0.0490 1% 0%
9 Porto Seguro 0.0318 0.0159 0% 200%
10 Mitsui Sumitomo 0.0000 0.0002 0% 0%
Financial Guarantee/Bond
LLOYD’S MAJOR CLASS OF BUSINESS ANALYSIS
Premium Trends (Calendar Year)
© Lloyd’s41
Source: Lloyd’s Market Intelligence calculations based on Xchanging, country of origin basis
Pr emium TRENDS
Energy
56.563.0
54.8
0
15
30
45
60
75
2008 2009 2010
-100%-80%-60%-40%-20%0%20%40%60%80%100%
Premium 56.5 63.0 54.8
Growth Δ % 11% -13%
2008 2009 2010
2008 – 2010 Lloyd’s Brazil Gross Signed Premiums (GSP) (US$ m) (Gross Signed Premium on a calendar year basis by country of origin, gross of RI and acquisition fees)
Premiums (Calendar Year)
Market Intelligence Team
How have we created Class Review?
1 Finding the best market information with a class of business breakdown with the help of…
Regulator Associations
Lloyd’s Country Manager
Market Practitioners / LMA Feedback
2 Mapping of market classes of business… …translation into English
Finding commonly used class of business descriptions, which can be used to benchmark Lloyd’s with the market
Comparing Lloyd’s with the rest of the market at a class of business level
3
METHODOLOGY
© Lloyd’s38
Pr emium TRENDS
Source: Lloyd’s Market Intelligence calculations based on Xchanging, country of origin basis
Accident & Heal th
0.6 0.8
5.4
0
2
4
6
8
10
2008 2009 2010
-100%-80%-60%-40%-20%0%20%40%60%80%100%
Premium 0.6 0.8 5.4
Growth Δ % 38% 550%
2008 2009 2010
2008 – 2010 Lloyd’s Brazil Gross Signed Premiums (GSP) (US$ m) (Gross Signed Premium on a calendar year basis by country of origin, gross of RI and acquisition fees)
Premiums (Calendar Year)
© Lloyd’s20
144.6
96.3
199.9174.8 172.2
204.8
0
50
100
150
200
250
2005 2006 2007 2008 2009 2010
-100%-80%-60%-40%-20%0%20%40%60%80%100%
Premium 144.6 96.3 199.9 174.8 172.2 204.8
Growth ∆ % -33% 108% -13% -2% 19%
2005 2006 2007 2008 2009 2010
Source: Market Intelligence analysis based on SUSEP
Aviation
Source: Market Intelligence analysis based on SUSEP
2005 – 2010 Brazil Direct Market Premiums (US$ m)(Insurance Premiums on a calendar year basis, gross of RI and acquisitions fees)
175.6%
122.7%
90.3%
36.2%39.2%
145.6%
0%
50%
100%
150%
200%
2005 2006 2007 2008 2009 2010
Loss Ratio 39.2% 175.6% 122.7% 145.6% 90.3% 36.2%
2005 2006 2007 2008 2009 2010
2005 – 2010 Brazil Direct Market Loss Ratio(Loss ratio calculated by dividing incurred losses by Insurance Premiums on a calendar year basis)
2005-2010 Cumulative Loss Ratio 96%
Premiums & Loss Ratios (Calendar Year)
MARKET © Lloyd’s37
32.2
40.3
48.8
0
15
30
45
60
75
2008 2009 2010
-100%-80%-60%-40%-20%0%20%40%60%80%100%
Premium 32.2 40.3 48.8
Growth ∆ % 25% 21%
2008 2009 2010
Source: Lloyd’s Market Intelligence calculations based on Xchanging, country of origin basis
2008 – 2010 Lloyd’s Brazil Gross Signed Premiums (GSP) (US$ m) (Gross Signed Premium on a calendar year basis by country of origin, gross of RI and acquisition fees)
Pr emium TRENDS
AviationPremiums (Calendar Year)
© Lloyd’s24
Source: Market Intelligence analysis based on SUSEP
PA & Heal th
659.6800.3
1086.5
1421.1 1448.2
1898.0
0
500
1000
1500
2000
2005 2006 2007 2008 2009 2010
-100%-80%-60%-40%-20%0%20%40%60%80%100%
Premium 659.6 800.3 1086.5 1421.1 1448.2 1898.0
Growth ∆ % 21% 36% 31% 2% 31%
2005 2006 2007 2008 2009 2010
2005 – 2010 Brazil Direct Market Premiums (US$ m)(Insurance Premiums on a calendar year basis, gross of RI and acquisitions fees)
95.8%
21.7% 17.9% 15.3%
28.1%18.4%
0%
20%
40%
60%
80%
100%
2005 2006 2007 2008 2009 2010
Loss Ratio 28.1% 95.8% 21.7% 18.4% 17.9% 15.3%
2005 2006 2007 2008 2009 2010
Source: Market Intelligence analysis based on SUSEP
2005 – 2010 Brazil Direct Market Loss Ratio(Loss ratio calculated by dividing incurred losses by Insurance Premium on a calendar year basis)
2005-2010 Cumulative Loss Ratio 27%
Premiums & Loss Ratios (Calendar Year)
MARKET
© Lloyd’s105
Source: Mapping based on translations and categorisation by Lloyd’s Market Intelligence & Lloyd’s Office Brazil
SUSEP Class
SUSEP Class
(English)
Major Classes (Portuguese)
Major ClassesDetailed Classes
(Portuguese)Detailed Classes
(English)
Transportes Cargo / TransitRC Amador - RC Transp. Aquaviario
Carga - RCA-C Shipowner liability renamed to
Waterway carrier liabilityTransportes Cargo / Transit RC Desvio de Carga - RCF-DC - Third Party liability of cargo deviation
Transportes Cargo / TransitRC do Operador de Transp.
Multimodal - RCOTM-C
Third Party Liability of the Operator of Intermodal Transport also known as
NVOCC or cargo agent (incorporating previous 0627)
Transportes Cargo / TransitRC Facultativa Veiculos RCFV
OnibusFacultative Third Party Liability -
Buses
Transportes Cargo / TransitRC Trasp. Ferroviario Carga -RCTF-
CThird Party liability of rail cargo
carrier
Transportes Cargo / TransitRC Transp. Viagem Intern. Carga -
RCTR-VI-CThird Party Liability of Internactional
Cargo Carrier
Transportes Cargo / TransitRC Trasnportsador Rodov Carga -
RCTR-CThird Party liability of Road cargo
carrier
Transportes Cargo / Transit RC Transp. Aereo Carga - RCTA-C Third Party liability of Air cargo carrier
Transportes Cargo / Transit RC Transporte IntermodalThird Party Liability of the Intermodal
Carrier (RUN OFF)
Transportes Cargo / Transit RC Trasnp. RodoviarioMandatory Third Party Liability Inland and Internactional Transport - Buses
Transportes Cargo / Transit RC Transporte Viagem Third Party Liability of carrier in
international trip (carring pax or not)
Transportes Cargo / Transit Transporte Internacional International cargo Transportes Cargo / Transit Transporte Nacional Domestic Cargo
Major Detailed
Car
go
Tra
nspo
rtes
MappingSUSEP Classes of Business
SUSEP Class
SUSEP Class
(English)
Major Classes (Portuguese)
Major ClassesDetailed Classes
(Portuguese)Detailed Classes
(English)
Aeronauticos Aviation (NEW) Aeronauticos (Casco) Aviation Hulls
Aeronauticos Aviation (NEW)Resp. Civil Facultativa para
Aeronaves - RCFFacultative Aircraft liability
Aeronauticos Aviation (NEW) Resp. Civil Hangar Hangarkeeper Liability
Aeronauticos Aviation (NEW)Resp. do Explorador ou
Transportador Aereo - RETAMandatory Aviation Third party
liability
Cascos Hull Aeronautico Aviation Hull (RUN OFF)
Cascos Hull Aeronautico Bilhetes Aircraft - Simplified Policy (RUN OFF)
Cascos Hull RC Hangar Hangar Liability (RUN OFF)
Riscos Especiais Special Risks Satelites Sattelites risks
Major Detailed
Aer
onau
ticos
Avi
atio
n
© Lloyd’s112
Source: Mapping based on translations and categorisation by Lloyd’s Market Intelligence & Lloyd’s Office Brazil
Lloyds COB Major Class Detailed Class
Aviation 2010 Lloyd's Airline
Aviation 2010 Lloyd's Airline/ General Aviation
Aviation 2010 Lloyd's Aviation Products/ Airport Liabilities
Aviation 2010 Lloyd's Aviation XL
Aviation 2010 Lloyd's General Aviation
Aviation 2010 Lloyd's Space
Lloyds Classes of Business
Avi
atio
n
Lloyds COB Major Class Detailed Class
Energy 2010 Lloyd's Energy Offshore Liability
Energy 2010 Lloyd's Energy Offshore Property
Energy 2010 Lloyd's Energy Onshore Liability
Energy 2010 Lloyd's Energy Onshore Property
Lloyds Classes of Business
En
erg
y
MappingLloyd’s Classes of Business
BENEFITS
Compares Lloyd’s performance by business class with local market
Mapping of Lloyd’s specialty classes of business
Insights on relevant business information: premiums, market shares & incurred loss ratios
Data reviewed by market participants
*Incurred loss ratios and underlying data are only available for Managing Agents
Brazil Overview
Lloyd’s underwrote a much larger proportion of Marine & Energy business than the local direct market average in Brazil during 2010.
BENCHMARKING TOOL
Illustrates the market versus Lloyd’s class of business breakdown.
HOW DOES THIS BENEFIT ME?
Class Review exposes particularities of the Lloyd’s market in a specific territory…
Which classes of business does Lloyd’s specialise in?
© Lloyd’s11
2Overview
of the
Brazil ian Market
1. Major Classes of Business Breakdown2. Premium Trends3. Loss Ratio Trends4. Competitor Ranking
IN THIS SECTION
© Lloyd’s12
OverviewMajor Classes of Business Breakdown
2010 Brazil Direct Market Premiums(Using SUSEP Major Classes of Business excluding life)
2010 Brazil Total Lloyd’s Premiums(Lloyd’s 10 Classes of Business; Note: no premiums for “UK Motor” and negligible premiums for “Overseas Motor”)
Source: Market Intelligence analysis based on SUSEP
Source: Lloyd’s Market Intelligence calculations based on Xchanging
Property (D&F)18%
Aviation19%
Energy21%
Casualty4%
Marine22%
Casualty Treaty0.4%
Property Treaty14%
Accident & Health5%
Marine & Energy
21%
Pecuniary Loss
0.9%
Aviation0.8%
PA & Health8%
Motor
6%
General Liability1.2%
Cargo
56%
Property
5%
Professional Liability0.6%
© Lloyd’s13
2008 – 2010 Brazil Direct Market Premiums (US$ m)(Non-Life Insurance Premiums on a calendar year basis, gross of RI and acquisition fees)
9906.112519.2
15256.2
19238.017895.9
23364.8
0
5000
10000
15000
20000
25000
2005 2006 2007 2008 2009 2010
-100%-80%-60%-40%-20%0%20%40%60%80%100%
Premium 9906.1 12519.2 15256.2 19238.0 17895.9 23364.8
Growth ∆ % 26% 22% 26% -7% 31%
2005 2006 2007 2008 2009 2010
Overview
Source: Market Intelligence analysis based on SUSEP
Source: Lloyd’s Market Intelligence calculations based on Xchanging, country of origin basis
2008 – 2010 Lloyd’s Brazil Gross Signed Premiums (GSP) (US$ m) (Gross Signed Premium on a calendar year basis by country of origin, gross of RI and acquisition fees)
164.7193.9
256.1
0
50
100
150
200
250
300
2008 2009 2010
-100%-80%-60%-40%-20%0%20%40%60%80%100%
Premium 164.7 193.9 256.1
Growth ∆ % 18% 32%
2008 2009 2010
Premium Trends (Calendar Year)
Brazil Overview
Lloyd’s business in Brazil has been growing significantly over the past 3 years.
BENCHMARKING TOOL
Compares Market premium trends with that of Lloyd’s.
HOW DOES THIS BENEFIT ME?
Class Review illustrates the importance of the Lloyd’s market in a particular territory…
How has Lloyd’s market participation evolved over the past 3 years?
© Lloyd’s11
2Overview
of the
Brazil ian Market
1. Major Classes of Business Breakdown2. Premium Trends3. Loss Ratio Trends4. Competitor Ranking
IN THIS SECTION
Brazil Overview
The profitability trend of the Brazilian direct market has been stable.
BENCHMARKING TOOL
Shows market performance trends.
HOW DOES THIS BENEFIT ME?
These charts illustrate local market loss trends, giving a proxy for profitability.
© Lloyd’s11
2Overview
of the
Brazil ian Market
1. Major Classes of Business Breakdown2. Premium Trends3. Loss Ratio Trends4. Competitor Ranking
IN THIS SECTION
© Lloyd’s13
49.3% 47.3% 48.0% 45.9%51.3% 46.5%
0%
25%
50%
75%
100%
2005 2006 2007 2008 2009 2010
Loss Ratio 51.3% 49.3% 47.3% 46.5% 48.0% 45.9%
2005 2006 2007 2008 2009 2010
Overview
2005 – 2010 Brazil Direct Market Loss Ratio(Loss ratio calculated by dividing incurred losses by Insurance Premiums on calendar year basis excluding life)
Loss Ratio Trends (Calendar Year)
Source: Market Intelligence analysis based on SUSEP
Brazil Overview
The two biggest non-life groups writing direct business in Brazil are Itau-Porto Seguro and Mapfre-Banco do Brasil.
BENCHMARKING TOOL
Ranks core competitors.
HOW DOES THIS BENEFIT ME?
Class Review reveals the biggest players in the direct local market.
With whom do the potential reinsurance opportunities lie?
© Lloyd’s11
2Overview
of the
Brazil ian Market
1. Major Classes of Business Breakdown2. Premium Trends3. Loss Ratio Trends4. Competitor Ranking
IN THIS SECTION
© Lloyd’s16
Overview
2010 Brazil Direct Market Top 10 Players (US$ m)(Direct Insurance Premiums on a calendar year basis, gross of RI and acquisition fees)
Source: Market Intelligence analysis based on SUSEP
Competitor Ranking (By Premiums)
Rank CompanyPaid Claims
US$ mGWP US$ m Market Share %
Paid Loss Ratio in %
1 Itau 1354.3 3140.2 13% 43%
2 Bradesco 1480.7 2581.8 11% 57%
3 Porto Seguros 1124.6 2276.9 10% 49%
4 Mapfre 921.4 1972.9 8% 47%
5 Banco do Brasil 670.9 1530.4 7% 44%
6 Sul America 849.5 1488.9 6% 57%
7 Allianz 533.6 1172.3 5% 46%
8 HDI Seguros 527.0 827.3 4% 64%
9 Liberty 460.3 819.0 4% 56%
10 Tokio Marine 365.3 778.5 3% 47%
Brazil Total Non-Life
SUSEP Major Classes
While premiums have remained fairly stable, the incurred loss ratios for Aviation have been spiky due to a Gol airplane crash in 2006 and a Tam crash in 2007.
ANALYSIS TOOL
Illustrates market premium trends and performance by class.
HOW DOES THIS BENEFIT ME?
Class Review illustrates the premium development and loss ratio trends of a particular class of business in Brazil.
How has the direct market performed over a 6-year trend?
© Lloyd’s20
144.6
96.3
199.9174.8 172.2
204.8
0
50
100
150
200
250
2005 2006 2007 2008 2009 2010
-100%-80%-60%-40%-20%0%20%40%60%80%100%
Premium 144.6 96.3 199.9 174.8 172.2 204.8
Growth ∆ % -33% 108% -13% -2% 19%
2005 2006 2007 2008 2009 2010
Source: Market Intelligence analysis based on SUSEP
Aviation
Source: Market Intelligence analysis based on SUSEP
2005 – 2010 Brazil Direct Market Premiums (US$ m)(Insurance Premiums on a calendar year basis, gross of RI and acquisitions fees)
175.6%
122.7%
90.3%
36.2%39.2%
145.6%
0%
50%
100%
150%
200%
2005 2006 2007 2008 2009 2010
Loss Ratio 39.2% 175.6% 122.7% 145.6% 90.3% 36.2%
2005 2006 2007 2008 2009 2010
2005 – 2010 Brazil Direct Market Loss Ratio(Loss ratio calculated by dividing incurred losses by Insurance Premiums on a calendar year basis)
2005-2010 Cumulative Loss Ratio 96%
Premiums & Loss Ratios (Calendar Year)
© Lloyd’s17
3Brazil (SUSEP)
Major Class of
Business Analysis
1. Property2. Aviation3. General Liability4. PA & Health5. Professional Liability6. Cargo7. Pecuniary Loss8. Marine & Energy9. Motor10. Life
IN THIS SECTION
SUSEP Major Classes
Many of the 2010 market leaders in the Aviation line are insurers with which Lloyd’s already has strong business relationships.
ANALYSIS TOOL
Ranks core competitors by class.
HOW DOES THIS BENEFIT ME?
Class Review reveals the biggest players in the direct market in a particular class of business.
Which players could Lloyd’s target to do business with in specialty classes like Aviation?
© Lloyd’s21
Source: Market Intelligence analysis based on SUSEP
2010 Brazil Direct Market Top 10 Players (US$ m)(Direct Insurance Premiums on a calendar year basis, gross of RI and acquisition fees)
Aviation
Rank CompanyPaid Claims
US$ mGWP US$ m Market Share %
Paid Loss Ratio in %
1 Mapfre 23.3 66.4 34% 35%
2 Itau 3.9 39.6 21% 10%
3 Bradesco 19.5 29.4 15% 66%
4 Allianz 10.1 23.8 12% 42%
5 Chubb 6.3 9.5 5% 66%
6 Liberty 0.0 7.2 4% 0%
7 Chartis 0.0 5.6 3% 0%
8 Fairfax 2.4 3.7 2% 66%
9 Sul America 5.0 3.0 2% 165%
10 CIA Excelcior 0.1 1.8 1% 7%
Aviation
Competitor Ranking (By Premiums)
© Lloyd’s17
3Brazil (SUSEP)
Major Class of
Business Analysis
1. Property2. Aviation3. General Liability4. PA & Health5. Professional Liability6. Cargo7. Pecuniary Loss8. Marine & Energy9. Motor10. Life
IN THIS SECTION
Lloyd’s Major Classes
Lloyd’s business in Energy account for approximately 20% of total premiums.
ANALYSIS TOOL
Illustrates Lloyd’s premium in major classes.
HOW DOES THIS BENEFIT ME?
Class Review illustrates the growth of Lloyd’s business in 8 major classes.
© Lloyd’s38
4Lloyd’s Brazil
Major Class of
Business Analysis
1. Aviation2. Accident & Health3. PA & Health4. Casualty5. Casualty Treaty6. Energy7. Marine8. Property D&F9. Property Treaty
IN THIS SECTION
© Lloyd’s41
Source: Lloyd’s Market Intelligence calculations based on Xchanging, country of origin basis
Pr emium TRENDS
Energy
56.563.0
54.8
0
15
30
45
60
75
2008 2009 2010
-100%-80%-60%-40%-20%0%20%40%60%80%100%
Premium 56.5 63.0 54.8
Growth ? % 11% -13%
2008 2009 2010
2008 – 2010 Lloyd’s Brazil Gross Signed Premiums (GSP) (US$ m) (Gross Signed Premium on a calendar year basis by country of origin, gross of RI and acquisition fees)
Premiums (Calendar Year)
SUSEP Major Classes
Premium growth was substantial in the past 6 years and profitability remained stable. With the forthcoming World Cup and Olympic Games this is likely to increase.
ANALYSIS TOOL
Illustrates market premium trends and performance by class.
HOW DOES THIS BENEFIT ME?
Class Review illustrates the premium development and loss ratio trends of a particular class of business in Brazil.
How has the direct market performed over a 6-year trend?
© Lloyd’s88
17.0%
31.1%22.7% 22.0%
30.9%23.0%
0%
20%
40%
60%
80%
100%
2005 2006 2007 2008 2009 2010
Loss Ratio 30.9% 17.0% 31.1% 23.0% 22.7% 22.0%
2005 2006 2007 2008 2009 2010
Source: Market Intelligence analysis based on SUSEP
Property
2005 – 2010 Brazil Direct Market Premiums (US$ m)(Insurance Premiums on a calendar year basis, gross of RI and acquisitions fees)
Source: Market Intelligence analysis based on SUSEP
2005-2010 Cumulative Loss Ratio 24%
2005 – 2010 Brazil Direct Market Loss Ratio(Loss ratio calculated by dividing incurred losses by Insurance Premium on a calendar year basis)
Engineering Risks
Premiums & Loss Ratios (Calendar Year)
88.9
122.1152.8
217.8
267.7 262.8
0
50
100
150
200
250
300
2005 2006 2007 2008 2009 2010
-100%-80%-60%-40%-20%0%20%40%60%80%100%
Premium 88.9 122.1 152.8 217.8 267.7 262.8
Growth Δ % 37% 25% 43% 23% -2%
2005 2006 2007 2008 2009 2010
© Lloyd’s55
5Brazil (SUSEP)
Special ist Class of Business Analysis
1. Aviation Hull & Liability2. Hangar Liability3. Third Party Liability of Cargo Deviation4. Third Party Liability of Road Cargo Carrier5. International Cargo6. Domestic Cargo
7. Marine Hull
8. Oil Risks
9. Guarantee Insurance Private Obligations
10. Financial guarantee/Bond
11. Legal or Judiciary Guarantee
12. Guarantee Insurance Public Obligations
13. Guarantee insurance Public Concessions
14. Loss of Profit
15. Theft or Burglary
16. Commercial Multiple Perils
17. Engineering Risks
18. Named Risks (Specific Risks) and Operational Risks (All risks)
19. Multiple Risks including Riots, Fidelity and Glass
20. Personal Accident Group
21. Professional Liability Specialist
22. Liability D&O
IN THIS SECTION
SUSEP Major Classes
Many of the 2010 market leaders in the Engineering line are insurers with which Lloyd’s already has strong business relationships.
ANALYSIS TOOL
Ranks core competitors by class.
HOW DOES THIS BENEFIT ME?
Class Review reveals the biggest players in the direct market in a particular class of business.
Which players could Lloyd’s target to do business with in specialty classes like Aviation?
© Lloyd’s89
Source: Market Intelligence analysis based on SUSEP
PropertyEngineering Risks
2010 Brazil Direct Market Top 10 Players (US$ m)(Direct Insurance Premiums on a calendar year basis, gross of RI and acquisition fees)
Competitor Ranking (By Premiums)
Rank CompanyPaid Claims
US$ mGWP US$ m Market Share %
Paid Loss Ratio in %
1 Itau 21.0 51.7 20% 41%
2 Allianz 1.2 39.9 15% 3%
3 Zurich 5.8 25.7 10% 22%
4 Mapfre 1.6 25.0 10% 6%
5 Tokio Marine 4.5 19.6 7% 23%
6 Ace 2.7 17.7 7% 15%
7 Caixa 1.4 13.1 5% 11%
8 Sul America 1.5 10.8 4% 14%
9 Royal & Sunalliance
9.8 10.5 4% 93%
10 Berkley 0.1 9.3 4% 1%
Engineering Risks© Lloyd’s55
5Brazil (SUSEP)
Special ist Class of Business Analysis
1. Aviation Hull & Liability2. Hangar Liability3. Third Party Liability of Cargo Deviation4. Third Party Liability of Road Cargo Carrier5. International Cargo6. Domestic Cargo
7. Marine Hull
8. Oil Risks
9. Guarantee Insurance Private Obligations
10. Financial guarantee/Bond
11. Legal or Judiciary Guarantee
12. Guarantee Insurance Public Obligations
13. Guarantee insurance Public Concessions
14. Loss of Profit
15. Theft or Burglary
16. Commercial Multiple Perils
17. Engineering Risks
18. Named Risks (Specific Risks) and Operational Risks (All risks)
19. Multiple Risks including Riots, Fidelity and Glass
20. Personal Accident Group
21. Professional Liability Specialist
22. Liability D&O
IN THIS SECTION
© Lloyd’s32
This document is intended for general information purposes only. Whilst all care has been taken to ensure the accuracy of the information Lloyd's does not accept any responsibility for any errors or omissions. Lloyd's does not accept any responsibility or liability for any loss to any person acting or refraining from action as a result of, but not limited to, any statement, fact, figure, expression of opinion or belief obtained in this document.
Disclaimer
© Lloyd’s33
CLASS REVIEW
May 2012
Find out more about Lloyd’s position in Mexico
> www.lloyds.com/classreview > Back to Agenda
WHAT IS CLASS REVIEW? Class of Business Analysis by Territory
Comparison of Lloyd’s vs. Market
Market Share Analysis
Downloadable Triangulations
BENEFITS
Mexico Pilot
Compares Lloyd’s performance
by business class with local market
Data reviewed by market practitioners
Insights on relevant business information: premiums, market shares & incurred loss ratios
>www.lloyds.com/classreview
Managing Agent, Broker and Coverholder Versions available on
2
CLASS REVIEW 2010 Mexico vs. Ll oyd’s February 2012
www.lloyds.com/classreview
© Lloyd’s
Reinsurance66%
Retained Premium
48%
Treaty XL2%
CeededPremium
68%
15
Source: Market Intelligence analysis based on CNSF
Prof.& Civil Liabil ity
2005 – 2010 Mexico Direct Premiums (US$ m)(Direct Insurance Premiums on a calendar year basis)
Source: Market Intelligence analysis based on CNSF
2010 Mexico Direct Insurance Premium Breakdown(Premium on a calendar year basis)
Direct Premiums (Calendar Year)
2005 2006 2007 2008 2009 2010
Premium 372.4 356.1 384.1 382.0 391.1 397.1
Growth ? % -4% 8% -1% 2% 2%
372.4 356.1384.1 382.0 391.1 397.1
0
100
200
300
400
500
2010 TotalDirect
US$ 397.1 m
© Lloyd’s
2005 2006 2007 2008 2009 2010
Gross Premium 278.3 357.1 270.6 267.7 268.3 262.1
Net Premium 237.1 288.8 221.5 216.8 223.5 217.6
Growth ? % 28% -24% -1% 0% -2%
Commission % 15% 19% 18% 19% 17% 17%
278.3
357.1
270.6 267.7 268.3 262.1
0
50
100
150
200
250
300
350
400
2005 2006 2007 2008 2009 2010
Gross Loss Ratio 23.4% 3.5% 26.6% 15.2% 21.9% 15.4%
Net Loss Ratio 27% 4% 32% 19% 26% 19%
0%
20%
40%
60%
80%
100%
16
Source: Market Intelligence analysis based on CNSF
Prof.& Civil Liabil ity
2005 – 2010 Mexico Reinsurance Premiums (US$ m)(Reinsurance Premiums on a calendar year basis)
Source: Market Intelligence analysis based on CNSF
2005 – 2010 Mexico Reinsurance Incurred Loss Ratio(Loss ratio calculated by dividing incurred losses by Premium on a calendar year basis)
2005-2010 Cumulative Gross Loss Ratio 17%
Reinsurance Premiums & Loss Ratios (Calendar Year)
What can you find in the Broker & Coverholder Version of Class Review?
BROKER & COVERHOLDER
Brokers & Coverholders have access to the following documents:
Mexico Class Review Report (PDF)
> 2010 Brazil Direct vs Lloyd’s Total report
BROKER & COVERHOLDER
1
1
What sections are available in the Market Report?
MARKET REPORT
CNSF MAJOR CLASS OF BUSINESSANALYSIS
Key Players
© Lloyd’s
2005 2006 2007 2008 2009 2010
Gross Premium 372.4 356.1 384.1 382.0 391.1 397.1
Growth Δ % 2% 12% 89% -9% 21%
372.4 356.1384.1 382.0 391.1 397.1
0
50
100
150
200
250
300
350
400
450
Reinsurance66%
Retained Premium
32%
Treaty XL2%
Other68%
18
Prof.& Civil Liabil ity
2005 – 2010 Mexico Direct Premiums (US$ m)(Direct Insurance Premiums on a calendar year basis)
Source: Market Intelligence analysis based on CNSF
Direct Premiums (Calendar Year)
Source: Market Intelligence analysis based on CNSF
2010 Mexico Direct Insurance Premium Breakdown(Premium on a calendar year basis)
2010 TotalDirect
US$ 397.1m
© Lloyd’s
2005 2006 2007 2008 2009 2010
Gross Loss Ratio 23.4% 3.5% 26.6% 15.2% 21.9% 15.4%
Net Loss Ratio 27% 4% 32% 19% 26% 19%
0%
20%
40%
60%
80%
100%
19
Source: Market Intelligence analysis based on CNSF
Prof.& Civil Liabil ity
2005 – 2010 Mexico Reinsurance Premiums (US$ m)(Reinsurance Premiums on a calendar year basis)
Source: Market Intelligence analysis based on CNSF
2005 – 2010 Mexico Reinsurance Incurred Loss Ratio(Loss ratio calculated by dividing incurred losses by Premium on a calendar year basis)
2005-2010 Cumulative Gross Loss Ratio 17%
Reinsurance Premiums & Loss Ratios (Calendar Year)
2005 2006 2007 2008 2009 2010
Gross Premium 278.3 357.1 270.6 267.7 268.3 262.1
Net Premium 237.1 288.8 221.5 216.8 223.5 217.6
Growth Δ % 28% -24% -1% 0% -2%
Commission % 15% 19% 18% 19% 17% 17%
278.3
357.1
270.6 267.7 268.3 262.1
0
50
100
150
200
250
300
350
400
© Lloyd’s20
Source: Market Intelligence analysis based on CNSF
Prof.& Civil Liabil ity
Source: Market Intelligence analysis based on CNSF
2005 – 2010 Mexico Reinsurance Incurred Loss Ratio(Loss ratio calculated by dividing incurred losses by Insurance Premium on a calendar year basis)
2005-2010 Cumulative Gross Loss Ratio 527%
Treaty XL Premiums & Loss Ratios (Calendar Year)
2005 – 2010 Mexico Reinsurance Premiums (US$ m)(Reinsurance Premiums on a calendar year basis)
2005 2006 2007 2008 2009 2010
Loss Ratio 174.8% 4218.1% 47.5% 171.9% 112.1% 50.1%
174.8%
4218.1%
47.5% 171.9% 112.1% 50.1%0%
500%1000%1500%2000%2500%3000%3500%4000%4500%
2005 2006 2007 2008 2009 2010
Gross Premium 4.6 4.1 6.9 6.4 8.0 9.8
Growth Δ % 23% -76% -12% 20% 61%
4.6 4.1
6.9 6.4
8.0
9.8
0
3
5
8
10
13
15
© Lloyd’s27
Source: Market Intelligence analysis based on SUSEP
2010 Brazil Direct Market Top 10 Players (US$ m)(Direct Written Premiums on a calendar year basis, gross of RI and acquisition fees)
Prof. Liabil ity
Rank CompanyPaid Claims
US$ mGWP US$ m Market Share %
Paid Loss Ratio in %
1 Zurich 1.3 29.6 21% 4%
2 Itau 23.3 26.2 19% 89%
3 ACE 3.5 24.5 17% 14%
4 Chartis 0.1 13.2 9% 1%
5 Allianz -0.2 8.6 6% -3%
6 Chubb 6.3 8.4 6% 75%
7 Mapfre 1.7 5.7 4% 30%
8 Tokio Marine 2.3 5.5 4% 42%
9 Nobre 3.3 4.5 3% 74%
10 HDI 0.0 4.5 3% 0%
Professional Liability
Competitor Ranking (By Premiums)
Direct Premium
trends
Reinsurance Premium & Loss
Ratio Trends (Calendar Year)
Treaty XL Premium & Loss
Ratio Trends (Calendar Year)
AGGREGATE
Overview and Benchmark Analysis (Lloyd’s vs. the market)
Direct Premium
trends
Mexico Reinsurance & Lloyd’s Loss
Ratio(Calendar Year)
© Lloyd’s
Reinsurance26%
Retained Premium
72%
Treaty XL2%
Other28%
13
2005 – 2010 Mexico Insurance Premiums (US$ m)(Reinsurance Premium on a Calendar Year basis)
Overview
Source: Market Intelligence analysis based on CNSF
Source: Market Intelligence analysis based on CNSF
2010 Mexico Direct Insurance Premium Breakdown(Premium on a calendar year basis)
2010 TotalDirect
US$ 10.2bn
Major Classes of Business Breakdown
2005 2006 2007 2008 2009 2010
Gross Premium 7448.3 8158.9 9598.2 10236.2 9651.9 10224.8
Growth Δ % 10% 18% 7% -6% 6%
7448.38158.9
9598.210236.2
9651.910224.8
0
2000
4000
6000
8000
10000
12000
© Lloyd’s14
2005 – 2010 Mexico Reinsurance Premiums (US$ m)(Reinsurance Premium on a Calendar Year basis)
Overview
Source: Lloyd’s Market Intelligence calculations based on Xchanging, country of origin basis
2008 – 2010 Lloyd’s Mexico Gross Signed Premiums (GSP) (US$ m) (Gross Signed Premium on a calendar year basis by country of origin, gross of RI and acquisition fees)
2009 2010 2011
Gross Premium 326.5 325.1 395.2
Growth Δ % 0% 22%
326.5 325.1
395.2
-100%-80%-60%-40%-20%0%20%40%60%80%
0
50
100
150
200
250
300
350
400
450
Major Classes of Business Breakdown
2005 2006 2007 2008 2009 2010
Gross Premium 1931.2 1895.7 2570.0 2499.5 3078.2 2644.5
Net Premium 1592.9 1573.1 2206.3 2074.0 2663.0 2220.0
Growth Δ % -2% 36% -3% 23% -14%
Commission % 18% 17% 14% 17% 13% 16%
1931.2 1895.7
2570.0 2499.5
3078.2
2644.5
0
500
1000
1500
2000
2500
3000
3500
Source: Market Intelligence analysis based on CNSF
Benchmark Analysis
Market vs. Lloyd’s
Mexico Reinsurance &
Lloyd’s Premiums
(Calendar Year)
© Lloyd’s12
OverviewMajor Classes of Business Breakdown
2010 Mexico Direct Market Premium Breakdown(Using CNSF Major Classes of Business)
2010 Total DirectUS$ 10.2bn
Personal Accident
Medical Expenses
Health
Agriculture & Cattle
Fire
Earthquake & other CAT
Motor
Marine & Transport
Civil & Professional Liability
Miscellaneous*
Credit
3.0%
25.3%
0.7%
1.3%
6.2%
8.9%
38.8%
4.4%
3.9%
7.1%
0.5%
Property
Motor
PA & Health
Miscellaneous :• Other – Billboard, Glass, Personal Belongings, House Theft, Enterprise Theft,
Fine Art and Home Assistance ( eg. Electrical faults).• Technical Branches – Construction all risks, Erection all risks, Electronic Equipment,
Boiler and Machinery, Machinery Breakdown, Contractors Equipment and RoadInsurance ( Dwellings and Erected Civil Construction).
• Cash and Values – Hole in One, Filming Interruption and Loan Guarantee ( eg. Creditcard repayment in case of unemployment).
Liability
Marine & Transport – Aviation Hull, Maritime Hull and Cargo
2010 Lloyd’s Total* Premium Breakdown(Premium on a calendar year basis, * The majority of Lloyd’s business in Mexico is reinsurance)
Accident & Health2%Aviation
8%Casualty4%
Energy5%
Marine11%
Property (D&F)62%
Property Treaty8%
2010 Lloyd’s TotalUS$ 395.2m
Source: Market Intelligence analysis based on CNSF
Source: Lloyd’s Market Intelligence calculations based on Xchanging, country of origin basis
* Please see appendix for classes of business within Miscellaneous.
© Lloyd’s14
OverviewLoss Ratio Trends (Calendar Year)
2005 – 2010 Mexico Reinsurance Incurred Loss Ratio(Loss ratio calculated by dividing incurred losses by Premiums on calendar year basis)
Source: Market Intelligence analysis based on CNSF
2005 2006 2007 2008 2009 2010
Gross Loss Ratio 112% 40% 58% 56% 32% 54%
Net Loss Ratio 134% 48% 67% 68% 37% 65%
0%
25%
50%
75%
100%
125%
150%
LLOYD’S MAJOR CLASS OF BUSINESS ANALYSIS
Premium Trends (Calendar Year)
© Lloyd’s62
Pr emium TRENDS
Accident & Heal thPremiums & Loss Ratios (Calendar Year)
2009 – 2011 Lloyd’s Mexico Gross Signed Premiums (GSP) (US$ m)(Gross Signed Premium on a calendar year basis by country of origin, gross of RI and acquisition fees)
2009 2010 2011Gross Premium 4.2 7.3 7.9Growth Δ % 73% 8%
4.2
7.37.9
0
2
4
6
8
10
Source: Lloyd’s Market Intelligence calculations based on Xchanging, country of origin basis
Market Intelligence Team
How have we created Class Review?
1 Finding the best market information with a class of business breakdown with the help of…
Regulator Associations
Lloyd’s Country Manager
Market Practitioners / LMA Feedback
2 Mapping of market classes of business… …translation into English
Finding commonly used class of business descriptions, which can be used to benchmark Lloyd’s with the market
Comparing Lloyd’s with the rest of the market at a class of business level
3
METHODOLOGY
© Lloyd’s67
Pr emium TRENDS
Property D&FPremiums & Loss Ratios (Calendar Year)
2009 – 2011 Lloyd’s Mexico Gross Signed Premiums (GSP) (US$ m)(Gross Signed Premium on a calendar year basis by country of origin, gross of RI and acquisition fees)
2009 2010 2011
Gross Premium 197.7 201.2 252.4
Growth Δ % 19% 16%
197.7 201.2
252.4
0
50
100
150
200
250
300
Source: Lloyd’s Market Intelligence calculations based on Xchanging, country of origin basis
© Lloyd’s66
Pr emium TRENDS
MarinePremiums & Loss Ratios (Calendar Year)
2009 – 2011 Lloyd’s Mexico Gross Signed Premiums (GSP) (US$ m)(Gross Signed Premium on a calendar year basis by country of origin, gross of RI and acquisition fees)
2009 2010 2011
Gross Premium 30.4 34.9 36.3
Growth Δ % 15% 4%
30.434.9 36.3
0
15
30
45
60
75
Source: Lloyd’s Market Intelligence calculations based on Xchanging, country of origin basis
MARKET MARKET
© Lloyd’s82
Source: Mapping based on translations and categorisation by Lloyd’s Market Intelligence
MappingMexico Direct Market Classes of Business
Property:• Agriculture & Cattle• Fire• Earthquake & other Catastrophes
Motor
PA & Health:• Health• Personal Accident• Medical Expenses
Miscellaneous:• Other – Billboard, Glass, Personal Belongings, House Theft, Enterprise Theft,
Fine Art and Home Assistance (eg. Electrical faults).• Technical Branches – Construction all risks, Erection all risks, Electronic Equipment,
Boiler and Machinery, Machinery Breakdown, Contractors Equipment and RoadInsurance (Dwellings and Erected Civil Construction).
• Cash and Values – Hole in One, Filming Interruption and Loan Guarantee (eg. Creditcard repayment in case of unemployment).
Liability:• Professional & Civil Liability
Marine & Transport:• Aviation Hull• Marine Hull• Cargo
© Lloyd’s83
MappingLloyd’s Classes of Business
Lloyd's COB Major Class Detailed Class
Property Lloyd's Difference in Conditions
Property Lloyd's Engineering
Property Lloyd's Extended Warranty
Property Lloyd's Legal Expenses
Property Lloyd's Livestock & Bloodstock
Property Lloyd's Japan
Property Lloyd's Nuclear
Property Lloyd's Power Generation
Property Lloyd's Property (direct & facultative)
Property Lloyd's Property D&F (non-US binder)
Property Lloyd's Property D&F (non-US open market)
Property Lloyd's Property D&F (US binder)
Property Lloyd's Property D&F (US open market)
Property Lloyd's Terrorism
Property Lloyd's Property (D&F) Total
Lloyd’s Classes of Business
Pro
pert
y
For detailed Lloyd’s Risk Code Mapping please visit: http://www.Lloyd's.com/The-Market/Operating-at-Lloyd's/Resources/Risk_codes
BENEFITS
Compares Lloyd’s performance by business class with local market
Mapping of Lloyd’s specialty classes of business
Data reviewed by market participants
Insights on relevant business information: premiums, market shares & incurred loss ratios*
Download underlying data*
*Incurred loss ratios and underlying data are only available for Managing Agents
Mexico Overview
Lloyd’s underwrote a much larger proportion of Property business when comparing to the local market in 2010
Benchmarking tool
Illustrates the market class of business breakdown.
HOW DOES THIS BENEFIT ME?
Class Review exposes particularities of the Lloyd’s market in a specific territory…
Which classes of business does Lloyd’s specialise in?
© Lloyd’s11
2Overview
of the Mexican Market
1. Major Classes of Business Breakdown2. Premium Trends3. Loss Ratio Trends4. Competitor Ranking TBC
IN THIS SECTION
© Lloyd’s12
OverviewMajor Class of Business Breakdown
2010 Mexico Direct Market Insurance Premium Breakdown(Using CNSF Major Classes of Business)
2010 Total DirectUS$ 10.2bn
Personal Accident
Medical Expenses
Health
Agriculture & Cattle
Fire**
Earthquake & other CAT**
Motor
Marine & Transport
Civil & Professional Liability
Miscellaneous*
Credit
3.0%
25.3%
0.7%
1.3%
6.2%
8.9%
38.8%
4.4%
3.9%
7.1%
0.5%
2010 Lloyd’s Total*** Premium Breakdown(Premium on a calendar year basis, *** The majority of Lloyd’s business in Mexico is reinsurance)
Accident & Health2%Aviation
8%Casualty4%
Energy5%
Marine11%
Property (D&F)62%
Property Treaty8%
2010 Lloyd’s TotalUS$ 325.1m
Source: Lloyd’s Market Intelligence calculations based on Xchanging, country of origin basis
** Please note that Fire and Earthquake & other CAT are usually sold together
* Please see appendix for classes of business within Miscellaneous.
Source: Market Intelligence analysis based on CNSF
Mexico Overview
Considering Motor and Health, Mexico retains the majority of its business as opposed to CAT lines.
BENCHMARKING TOOL
Illustrate how much of the direct premium is ceded.
HOW DOES THIS BENEFIT ME?
Class Review illustrates the growth of a particular territory…
How has the Mexican market evolved over the past 6 years?
© Lloyd’s11
2Overview
of the Mexican Market
1. Major Classes of Business Breakdown2. Premium Trends3. Loss Ratio Trends4. Competitor Ranking TBC
IN THIS SECTION
© Lloyd’s
Reinsurance26%
Retained Premium
72%
Treaty XL2%
Other28%
13
2005 – 2010 Mexico Insurance Premiums (US$ m)(Reinsurance Premium on a Calendar Year basis)
Overview
Source: Market Intelligence analysis based on CNSF
Source: Market Intelligence analysis based on CNSF
2010 Mexico Direct Insurance Premium Breakdown(Premium on a calendar year basis)
2010 TotalDirect
US$ 10.2bn
Major Classes of Business Breakdown
2005 2006 2007 2008 2009 2010
Gross Premium 7448.3 8158.9 9598.2 10236.2 9651.9 10224.8
Growth Δ % 10% 18% 7% -6% 6%
7448.38158.9
9598.210236.2
9651.910224.8
0
2000
4000
6000
8000
10000
12000
Mexico Overview
Lloyd’s premiums in Mexico represent 12.5% of the total reinsurance premium in Mexico.
BENCHMARKING TOOL
Compares Market performance trends versus Lloyd’s.
HOW DOES THIS BENEFIT ME?
These charts illustrate the premium growth of Reinsurance in Mexico and Lloyd’s premiums in Mexico.
How does Lloyd’s premiums compare with that of the direct local market?
© Lloyd’s11
2Overview
of the Mexican Market
1. Major Classes of Business Breakdown2. Premium Trends3. Loss Ratio Trends4. Competitor Ranking TBC
IN THIS SECTION
© Lloyd’s14
2005 – 2010 Mexico Reinsurance Premiums (US$ m)(Reinsurance Premium on a Calendar Year basis)
Overview
Source: Lloyd’s Market Intelligence calculations based on Xchanging, country of origin basis
2009 2010 2011
Gross Premium 326.5 325.1 395.2Growth Δ % 0% 22%
326.5 325.1
395.2
-100%-80%-60%-40%-20%0%20%40%
60%80%
0
50
100
150
200
250
300
350
400
450
Premium Trends (Calendar Year)
2005 2006 2007 2008 2009 2010
Gross Premium 1771.2 1545.2 2319.0 2277.3 2889.5 2440.7
Net Premium 1475.9 1269.0 1991.6 1894.4 2507.6 2045.7
Growth Δ % -13% 50% -2% 27% -16%
Commission % 17% 18% 14% 17% 13% 16%
1771.21545.2
2319.0 2277.3
2889.5
2440.7
0
500
1000
1500
2000
2500
3000
3500
2009 – 2011 Lloyd’s Total* Mexico Gross Signed Premiums (US$ m) (Gross Signed Premium on a calendar year basis by country of origin, gross of RI and acquisition fees)
* The majority of Lloyd’s business in Mexico is reinsurance
Source: Market Intelligence analysis based on CNSF
Mexico Overview
The profitability of Lloyd’s business in Mexico are in line with the local market
BENCHMARKING TOOL
Compares Market performance trends versus Lloyd’s.
HOW DOES THIS BENEFIT ME?
These charts illustrate local market and Lloyd’s loss trends, giving a proxy for profitability.
How does Lloyd’s profitability compare with that of the direct local market?
© Lloyd’s11
2Overview
of the Mexican Market
1. Major Classes of Business Breakdown2. Premium Trends3. Loss Ratio Trends4. Competitor Ranking TBC
IN THIS SECTION
© Lloyd’s14
OverviewLoss Ratio Trends (Calendar Year)
2005 – 2010 Mexico Reinsurance Incurred Loss Ratio(Loss ratio calculated by dividing incurred losses by Premiums on calendar year basis)
Source: Market Intelligence analysis based on CNSF
2005 2006 2007 2008 2009 2010
Gross Loss Ratio 112% 40% 58% 56% 32% 54%
Net Loss Ratio 134% 48% 67% 68% 37% 65%
0%
25%
50%
75%
100%
125%
150%
CNSF Major Classes
The liability line of business in Mexico is largely reinsured as only 32% of the direct premium is retained by local insurers indicating a high appetite for reinsurance from the local market.
ANALYSIS TOOL
Illustrates market premium trends and performance by class.
HOW DOES THIS BENEFIT ME?
Class Review illustrates the premium development and the percentage of retained and ceded premiums.
How has the direct market performed over a 6-year trend?
© Lloyd’s
Reinsurance66%
Retained Premium
32%
Treaty XL2%
Other68%
30
Prof & Civil Liabil ity
2005 – 2010 Mexico Direct Insurance Premiums (US$ m)(Direct Insurance Premiums on a calendar year basis)
Direct Premiums (Calendar Year)
2010 Mexico Direct Insurance Premium Breakdown(Premium on a calendar year basis)
2010 TotalDirect
US$ 397.1m
2005 2006 2007 2008 2009 2010
Gross Premium 372.4 356.1 384.1 382.0 391.1 397.1
Growth Δ % -4% 8% -1% 2% 2%
372.4 356.1384.1 382.0 391.1 397.1
0
50
100
150
200
250
300
350
400
450
Source: Market Intelligence analysis based on CNSF
Source: Market Intelligence analysis based on CNSF
© Lloyd’s17
3Mexico (CNSF)
Major Class of Business Analysis
1. Agriculture & Cattle2. Fire3. Earthquake & other Catastrophes4. Professional & Civil Liability5. Marine & Transport6. Credit7. Miscellaneous8. Motor9. Health10. Medical Expenses11. Personal Accident
IN THIS SECTION
CNSF Major Classes
Reinsurance premiums and loss ratio trends have remained quite stable for the past six years.
ANALYSIS TOOL
Illustrates market premium trends and performance by class.
HOW DOES THIS BENEFIT ME?
Class Review illustrates the premium development and loss ratio trends of a particular class of business in Mexico.
How has the reinsurance market performed over a 6-year trend?
© Lloyd’s17
3Mexico (CNSF)
Major Class of Business Analysis
1. Agriculture & Cattle2. Fire3. Earthquake & other Catastrophes4. Professional & Civil Liability5. Marine & Transport6. Credit7. Miscellaneous8. Motor9. Health10. Medical Expenses11. Personal Accident
IN THIS SECTION
© Lloyd’s31
Prof & Civil Liabil ity
2005 – 2010 Mexico Reinsurance Premiums (US$ m)(Reinsurance Premiums on a calendar year basis)
2005 – 2010 Mexico Reinsurance Incurred Loss Ratio(Loss ratio calculated by dividing incurred losses by Premium on a calendar year basis)
2005-2010 Cumulative Gross Loss Ratio 20%
Reinsurance Premiums & Loss Ratios (Calendar Year)
2005 2006 2007 2008 2009 2010
Gross Premium 278.3 225.9 270.6 267.7 268.3 262.1
Net Premium 237.1 189.2 221.5 216.8 223.5 217.6
Growth Δ % -19% 20% -1% 0% -2%
Commission % 15% 16% 18% 19% 17% 17%
278.3
225.9
270.6 267.7 268.3 262.1
0
50
100
150
200
250
300
350
400
Source: Market Intelligence analysis based on CNSF
Source: Market Intelligence analysis based on CNSF
2005 2006 2007 2008 2009 2010
Gross Loss Ratio 23% 14% 27% 15% 22% 15%
Net Loss Ratio 27% 16% 32% 19% 26% 19%
0%
20%
40%
60%
80%
100%
CNSF Major Classes
Treaty XL premiums in Mexico have shown a slow but consistent growth over the past six years.
ANALYSIS TOOL
Illustrates market premium trends and performance by class.
HOW DOES THIS BENEFIT ME?
Class Review illustrates the premium development and loss ratio trends of a particular class of business in Mexico.
How has the Treaty XL market performed over a 6-year trend?
© Lloyd’s17
3Mexico (CNSF)
Major Class of Business Analysis
1. Agriculture & Cattle2. Fire3. Earthquake & other Catastrophes4. Professional & Civil Liability5. Marine & Transport6. Credit7. Miscellaneous8. Motor9. Health10. Medical Expenses11. Personal Accident
IN THIS SECTION
© Lloyd’s32
Prof & Civil Liabil ity
2005 – 2010 Mexico Reinsurance Incurred Loss Ratio(Loss ratio calculated by dividing incurred losses by Insurance Premium on a calendar year basis)
2005-2010 Cumulative Gross Loss Ratio 527%
Treaty XL Premiums & Loss Ratios (Calendar Year)
2005 – 2010 Mexico Reinsurance Premiums (US$ m)(Reinsurance Premiums on a calendar year basis)
2005 2006 2007 2008 2009 2010
Loss Ratio 174.8% 4218.1% 47.5% 171.9% 112.1% 50.1%
174.8%
4218.1%
47.5% 171.9% 112.1% 50.1%0%
500%1000%1500%2000%2500%3000%3500%4000%4500%
2005 2006 2007 2008 2009 2010
Gross Premium 4.6 4.1 6.9 6.4 8.0 9.8
Growth Δ % -10% 68% -7% 24% 23%
4.6 4.1
6.9 6.4
8.0
9.8
0
3
5
8
10
13
15
Source: Market Intelligence analysis based on CNSF
Source: Market Intelligence analysis based on CNSF
CNSF Major Classes
Many of the 2010 market leaders in the Liability line are ceding most of its premiums.
ANALYSIS TOOL
Ranks core competitors by class.
HOW DOES THIS BENEFIT ME?
Class Review reveals the biggest players in the direct market in a particular class of business.
Which players could Lloyd’s target to do business with in specialty classes like Liability?
© Lloyd’s33
Prof & Civil Liabil ityCompetitor Ranking (By Premiums)
2010 Mexico Direct Market Top 10 Players (US$ m)(Direct Insurance Premiums on a calendar year basis, gross of acquisition fees)
Rank CompanyCeded Premium
US$ mDirect Premium
US$ mMarket Share % Ceded %
1 GMX Seguros 32.9 64.2 16% 51%
2 Chartis 33.1 41.1 10% 81%
3 AXA Seguros 9.4 36.9 9% 26%
4 Inbursa 22.5 32.7 8% 69%
5 Atlas 25.1 26.5 7% 95%
6 Zurich 24.7 26.2 7% 94%
7 G.N.P. 14.2 19.4 5% 73%
8 Mapfre Tepeyac 14.4 18.8 5% 77%
9 ACE Seguros 16.4 18.7 5% 87%
10 Afirme 15.8 17.0 4% 93%
Professional & Civil Liability Direct Insurance
Source: Market Intelligence analysis based on CNSF
© Lloyd’s17
3Mexico (CNSF)
Major Class of Business Analysis
1. Agriculture & Cattle2. Fire3. Earthquake & other Catastrophes4. Professional & Civil Liability5. Marine & Transport6. Credit7. Miscellaneous8. Motor9. Health10. Medical Expenses11. Personal Accident
IN THIS SECTION
Lloyd’s Major Classes
Lloyd’s business in Property D&F account for approximately 62% of total premiums.
ANALYSIS TOOL
Illustrates Lloyd’s premium and loss ratio trends by class.
HOW DOES THIS BENEFIT ME?
Class Review illustrates the growth and profitability of Lloyd’s business in 8 major classes.
How is Lloyd’s performing in its major classes of business in Mexico?
© Lloyd’s62
4Lloyd’s Mexico
Major Class of Business Analysis
1. Aviation2. Accident & Health3. Casualty4. Casualty Treaty5. Energy6. Marine7. Property D&F8. Property Treaty
IN THIS SECTION
© Lloyd’s67
Pr emium TRENDS
Property D&FPremiums & Loss Ratios (Calendar Year)
2009 – 2011 Lloyd’s Mexico Gross Signed Premiums (GSP) (US$ m)(Gross Signed Premium on a calendar year basis by country of origin, gross of RI and acquisition fees)
2009 2010 2011
Gross Premium 197.7 201.2 252.4
Growth Δ % 19% 16%
197.7 201.2
252.4
0
50
100
150
200
250
300
Source: Lloyd’s Market Intelligence calculations based on Xchanging, country of origin basis
BENEFITS
Compares Lloyd’s with its core competitors
Mapping of Lloyd’s specialty classes of business
Data reviewed by market participants
Insights on relevant business information: premiums, market shares & incurred loss ratios*
Download underlying data*
*Incurred loss ratios and underlying data are only available for Managing Agents
CLASS REVIEW
July 2012
Find out more about Lloyd’s position in Turkey
> www.lloyds.com/classreview > Back to Agenda
WHAT IS CLASS REVIEW? Class of Business Analysis by Territory
Comparison of Lloyd’s vs. Market
Market Share Analysis
Downloadable Triangulations
BENEFITS
Turkey Pilot
Compares Lloyd’s performance
by business class with local market
Insights on relevant business information: premiums, market shares & incurred loss ratios* Download underlying data in a clear, easy to use Excel format*
*Incurred loss ratios and underlying data are only available for Managing Agents
>www.lloyds.com/classreview
Managing Agent, Broker and Coverholder Versions available on
© Lloyd’s12
2008 – 2010 Turkey Insurance Premiums (US$ m)(Insurance Premium on a Calendar Year basis)
Overview
Source: Lloyd’s Market Intelligence calculations based on Xchanging, country of origin basis
Premium Trends (Calendar Year)
2009 – 2011 Lloyd’s Total* Turkey Gross Signed Premiums (US$ m) (Gross Signed Premium on a calendar year basis by country of origin, gross of RI and acquisition fees)
* The majority of Lloyd’s business in Turkey is reinsurance
Source: Market Intelligence analysis based on TSRSB
2008 2009 2010
Direct Premium 7,901.7 6,744.4 7,929.5
Ceeded Premium 2,458.6 2,081.9 2,140.3
Ceeded % 31% 31% 27%
Direct Growth Δ % -14.6% 17.6%
7,901.7
6,744.4
7,929.5
0
2,000
4,000
6,000
8,000
10,000
2009 2010 2011
Gross Premium 124.8 144.9 123.1
Growth Δ % 16% -15%
124.8
144.9
123.1
0
25
50
75
100
125
150
175
What can you find in the Broker & Coverholder Version of Class Review?
BROKER & COVERHOLDER VERSION
Brokers & Coverholders have access to the following documents:
Turkey Class Review Report (PDF)
> 2010 Turkey vs. Lloyd’s report
BROKER & COVERHOLDER VERSION
1
1
What sections are available in the Market Report?
MARKET REPORT
Overview and Benchmark Analysis (Lloyd’s vs. the market)
TSRSB MAJOR CLASS OF BUSINESSANALYSIS
Premium & Loss Ratio Trends
(Calendar Year)
Key Players
TSRSB DETAILED CLASS OF BUSINESS ANALYSIS
Premium Trends (Calendar Year)
Key Players
Direct Premium
trends
Loss Ratio trends
(Calendar Year)
Key Players
Benchmark Analysis
Market vs. Lloyd’s
LLOYD’S MAJOR CLASS OF BUSINESS ANALYSIS
Premium & Loss Ratio Trends
(Calendar Year)
Market Intelligence Team
How have we created Class Review?
1 Finding the best market information with a class of business breakdown with the help of…
Associations
2 Mapping of market classes of business… …translation into English
Finding commonly used class of business descriptions, which can be used to benchmark Lloyd’s with the market
Comparing Lloyd’s with the rest of the market at a class of business level
3
METHODOLOGY
MARKET MARKET
BENEFITS
Compares Lloyd’s performance by business class with local market
Mapping of Lloyd’s specialty classes of business
Insights on relevant business information: premiums, market shares & incurred loss ratios*
Download underlying data*
*Incurred loss ratios and underlying data are only available for Managing Agents
Turkey Overview
Lloyd’s underwrote a much larger proportion of Marine in 2011 business when comparing to the local market in 2010
Benchmarking tool
Illustrates the market class of business breakdown.
HOW DOES THIS BENEFIT ME?
Class Review exposes particularities of the Lloyd’s market in a specific territory…
Which classes of business does Lloyd’s specialise in?
© Lloyd’s
Motor47%
Property25%
PA & Health19%
Marine/ Cargo3%
Liability3%
Pecuniary Loss1%
Aviation1%
Miscellaneous1%
Marine30%
Property (D&F)19%
Property Treaty16%
Aviation13%
Energy9%
Accident & Health
6%
Casualty5%
Casualty Treaty2%
11
OverviewMajor Class of Business Breakdown
2010 Turkey Direct Market Insurance Premium Breakdown(Using TSRSB Major Classes of Business)
2011 Lloyd’s Total*** Premium Breakdown(Premium on a calendar year basis, *** The majority of Lloyd’s business in Turkey is reinsurance)
Source: Lloyd’s Market Intelligence calculations based on Xchanging, country of origin basis
Source: Market Intelligence analysis based on TSRSB
2011 Lloyd’s TotalUS$ 123.1m
2010 Direct TotalUS$ 7.9bn
Turkey Overview
Lloyd’s premiums in 2010 represented 6.7% of the ceded premiums in Turkey
BENCHMARKING TOOL
Illustrate how much of the direct premium is ceded.
HOW DOES THIS BENEFIT ME?
Class Review illustrates the growth of a particular territory…
How has the Turkish market evolved over the past 3 years?
© Lloyd’s12
2008 – 2010 Turkey Insurance Premiums (US$ m)(Insurance Premium on a Calendar Year basis)
Overview
Source: Lloyd’s Market Intelligence calculations based on Xchanging, country of origin basis
Premium Trends (Calendar Year)
2009 – 2011 Lloyd’s Total* Turkey Gross Signed Premiums (US$ m) (Gross Signed Premium on a calendar year basis by country of origin, gross of RI and acquisition fees)
* The majority of Lloyd’s business in Turkey is reinsurance
Source: Market Intelligence analysis based on TSRSB
2008 2009 2010
Direct Premium 7,901.7 6,744.4 7,929.5Ceeded Premium 2,458.6 2,081.9 2,140.3Ceeded % 31% 31% 27%
Direct Growth Δ % -14.6% 17.6%
7,901.7
6,744.4
7,929.5
0
2,000
4,000
6,000
8,000
10,000
2009 2010 2011
Gross Premium 124.8 144.9 123.1
Growth Δ % 16% -15%
124.8
144.9
123.1
0
25
50
75
100
125
150
175
Turkey Overview
Ceded reinsurance in Turkey is profitable in comparison to the direct local market
BENCHMARKING TOOL
Compares Market performance trends versus Lloyd’s.
HOW DOES THIS BENEFIT ME?
These charts illustrate direct and ceded business loss trends, giving a proxy for profitability.
How does Lloyd’s profitability compare with that of the direct local market?
© Lloyd’s12
OverviewLoss Ratio Trends (Calendar Year)
Source: Market Intelligence analysis based on TSRSB
2008 2009 2010
Direct Loss Ratio 65% 72% 63%Ceeded Loss Ratio 53% 69% 46%
0%
20%
40%
60%
80%
100%
2008 – 2010 Turkey Insurance Premiums (US$ m)(Insurance Premium on a Calendar Year basis)
TSRSB Major Classes
Insurance premiums and loss ratio trends have improved over the past three years.
ANALYSIS TOOL
Illustrates market premium trends and performance by class.
HOW DOES THIS BENEFIT ME?
Class Review illustrates the premium development and loss ratio trends of a particular class of business in Turkey.
How has the reinsurance market performed over a 3-year trend?
© Lloyd’s
2008 2009 2010
Direct Loss Ratio 70% 73% 79%Ceeded Loss Ratio 60% 97% 77%
0%
20%
40%
60%
80%
100%
20
l iabıl ıty
2008 – 2010 Turkey Reinsurance Incurred Loss Ratio(Loss ratio calculated by dividing incurred losses by Premium on a calendar year basis)
2008-2010 Cumulative Direct Loss Ratio 75%
Source: Market Intelligence analysis based on TSRSB
Source: Market Intelligence analysis based on TSRSB
2008 2009 2010
Direct Premium 180.7 161.7 217.3Ceeded Premium 105.0 93.6 115.4Ceeded % 58% 58% 53%
Direct Growth Δ % -10.5% 34.4%
180.7 161.7
217.3
0
50
100
150
200
250
Premiums & Loss Ratios (Calendar Year)
2008 – 2010 Turkey Insurance Premiums (US$ m)(Insurance Premium on a Calendar Year basis)
TSRSB Major Classes
AXA dominates the Liability business with a 13% market share.
ANALYSIS TOOL
Ranks core competitors by class.
HOW DOES THIS BENEFIT ME?
Class Review reveals the biggest players in the direct market in a particular class of business.
Which players could Lloyd’s target to do business with in specialty classes like Liability?
© Lloyd’s
Rank Market Share%
1 13%
2 11%
3 8%
4 7%
5 6%
6 6%
7 5%
8 4%
9 4%
10 3%
Liability
Company Name Direct Premium US$ m
Axa 27.3
Anadolu 23.6
Eureko 18.2
Allianz 15.3
Yapı Kredi 12.8
Chartis 12.6
Gunes 7.5
Ergo 10.1
Groupama 8.2
Ak 8.1
21
l ıabıl ıtyCompetitor Ranking (By Premiums)
2010 Turkey Direct Market Top 10 Players (US$ m)(Direct Insurance Premiums on a calendar year basis, gross of acquisition fees)
Source: Market Intelligence analysis based on TSRSB
Lloyd’s Major Classes
Lloyd’s Marine business accounts for approximately 30% of total premiums.
ANALYSIS TOOL
Illustrates Lloyd’s premium and loss ratio trends by class.
HOW DOES THIS BENEFIT ME?
Class Review illustrates the growth of Lloyd’s business in 8 major classes.
How is Lloyd’s performing in its major classes of business in Turkey?
© Lloyd’s38
Pr emium TRENDS
Marine
2009 – 2011 Lloyd’s Turkey Gross Signed Premiums (GSP) (US$ m)(Gross Signed Premium on a calendar year basis by country of origin, gross of RI and acquisition fees)
Source: Lloyd’s Market Intelligence calculations based on Xchanging, country of origin basis
2009 2010 2011
Gross Premium 29.0 44.4 40.2
Growth Δ % 53% -10%
29.0
44.440.2
0
10
20
30
40
50
Premiums & Loss Ratios (Calendar Year)
BENEFITS
Compares Lloyd’s with its core competitors
Mapping of Lloyd’s specialty classes of business
Insights on relevant business information: premiums, market shares & incurred loss ratios*
Download underlying data*
*Incurred loss ratios and underlying data are only available for Managing Agents
© Lloyd’s63
This document is intended for general information purposes only. Whilst all care has been taken to ensure the accuracy of the information Lloyd's does not accept any responsibility for any errors or omissions. Lloyd's does not accept any responsibility or liability for any loss to any person acting or refraining from action as a result of, but not limited to, any statement, fact, figure, expression of opinion or belief obtained in this document.
Disclaimer
© Lloyd’s64