MAKE YOUR WORLD GO. XL Group Reinsurance

Transcription

1 Re Report on the First Quarter Our : solid underwriting and fast responses, the whole world over. Offices MAKE YOUR WORLD GO 2013, plc companies. All rights reserved. I MAKE YOUR WORLD GO 1

2 XL: Beyond Re Reason. Intuition. Experience. The kind that you only get from over 200 years in the business. And that s just our leadership team. Ready for anything As well as knowing what s already happened, we re tuned into what s next. Scanning the horizon for new trends. Always watching out for new threats. Reach and reputation Across the world, you ll find the same XL qualities: underwriting excellence, sharp reactions and transparent pricing. The best individual talent worldwide, working together as a team. Reinforced Real financial strength. Which means real security for you. Reliable A broad international mix with a consistent global approach. So wherever you are, and whatever the market conditions, you ll always get the highest quality products and services. Refined We use specialists for different product lines and different geographical areas. Recommended and respected Altogether, it s why we re ranked as one of the world s top reinsurers*. And it s why most of the world s 500 leading insurance companies choose us to help make their world go. Our vision Make your world go. That s what we promise our clients. This means giving them the most inventive and intelligent answers, dependable, clear underwriting and excellent service. By doing this, we ll also give our shareholders the best possible returns. And together, we ll all move the world forward. Offices * Based on Standard & Poor s Global Highlights 2012 Continued 2

3 A leading global reinsurer America Offices Latin America Offices Bermuda Offices Europe/Asia Pacific Offices Headquartered in Stamford, CT Branch offices in Atlanta, GA, Chicago, IL, Dallas, TX, Hartford, CT, New York, NY, Philadelphia, PA, Walnut Creek, CA, and Toronto, Canada Coverage Includes Property, Casualty, Accident and Health, and Property Facultative Market Coverage is provided to insurance companies domiciled in the US and Canada Buenos Aires, Argentina; Bogotá, Colombia; and Sao Pãulo, Brazil Coverage Provides traditional Treaty on a proportional and non-proportional basis for all major classes of business, including Surety, General Liability, Motor, Property, Engineering, Marine and Aviation Market Bogotá covers the local market, plus Peru, Venezuela, Ecuador, Mexico, Puerto Rico, Dominican Republic and Central America Hamilton, Bermuda Coverage A broad range of risks, including US and International Property Catastrophe and Specialty risks solely on a treaty basis Market Property Catastrophe coverage is provided to insurance companies domiciled in the United States, Canada, United Kingdom, Japan, Australia, New Zealand and the Caribbean Dublin, Le Mans, Paris, London and Zurich Coverage International Property, Casualty, Marine & Energy, Aviation, Aerospace, Property Retrocession, Property Facultative and Specialty coverages Market Underwrites business originating from Europe, the Middle East, Africa, Asia and Australasia Offices Buenos Aires is responsible for Argentina, Chile, Uruguay, Bolivia and Paraguay Sao Pãulo handles the Brazilian market 3

4 A Message from our Chief Executive First Quarter 2013 So far this year, fairly benign catastrophe activity and an abundance of capital have proven beneficial to reinsurers, including XL. However, neither we nor the industry can afford to take these conditions for granted. History has taught us that we need to be prepared for both the expected and unexpected. Since the end of the first quarter we have started to see severe weather-related events such as the recent tornadoes in the Midwestern and Southern U.S. and earthquakes of 6.5 magnitude and above from Alaska to China. With the Atlantic hurricane season upon us, we can expect to see more natural catastrophe activity. In fact, both the National Oceanic and Atmospheric Administration s Climate Prediction Center and Colorado State University s Department of Atmospheric Science have predicted that oceanic and atmospheric conditions in 2013 could set the stage for a busier season with stronger and more numerous storms than last year, which saw 19 named storms, nine of which were hurricanes, and ranked as the third busiest season in history. It is with this and other risks in mind that we at XL take seriously our commitment to disciplined underwriting, cutting edge analytics and superior service. We realize that it is during difficult times that brokers and clients need us most and in order to be able to provide security and solid solutions, we must ensure that we price risk adequately and establish proper terms and conditions in advance. Based on our track record during the past 20 years, XL s Operations have been doing this successfully. This is reflected in our results for the first quarter of this year, which included an underwriting profit of $106.6 million, compared to $74.5 million in the first quarter of 2012, and a healthy combined ratio of 74.9% for the quarter, compared to 82.4% for the prior year quarter. Excluding prior year development and the impact of natural catastrophe losses, the combined ratio for the quarter was 79.9% compared to 88.7% for the prior year quarter. In addition to this, we are proud of the fact that we have produced an underwriting profit for seven consecutive years with an average combined ratio of 86.4% for 2006 to This has contributed significantly to XL s overall solid performance and steady progress. You can read more in this brochure about our first quarter performance and the contact information of some of those involved in contributing to this solid performance. We realize that brokers and our valued ceding partners have also played a key role in our accomplishments. It is for this reason that we continue to invest in the development of our people, products and technology. After all, our progress is the fuel that drives our stakeholders and our success. Offices James H. Veghte Executive Vice President & Chief Executive, s Operations 4

5 James H. Veghte Executive Vice President & Chief Executive s Operations John P. Welch President & Chief Executive Officer XL America Inc. Charles Cooper President & Chief Underwriting Officer XL Re Ltd David Watson President & Chief Executive Officer XL Re Europe Limited / Asia Pacific Philippe Rochaix President & Chief Operating Officer XL Re Latin America Ltd Derrick Irby Executive Vice President & Chief Financial Officer s Operations Jean-Marc Wassen Chief Actuarial Officer s Operations Offices 5

6 Financial Highlights Three months ended March 31, 2013 : Financial Ratings Ratings as of December 11, 2012 Gross premiums written:...$907.1 millionn Net premiums earned:...$425.2 million Loss ratio: % Combined ratio: % A (Stable) A (Positive) A.M. Best Standard & Poor s Gross Premium Written by Region Three months ended March 31, 2013 Gross Premiums Written by Product Group Three months ended March 31, 2013 Offices 15.6% North America 53.7% International 27.0% Bermuda 3.7% Latin America 32.5% Property CAT 26.0% Property Other 7.5% Casualty Professional 18.7% Casualty Other 9.4% Other 5.9% Marine & Energy, Aviation & Satellite 6

7 Key Results (Three months ended March 31, 2013) Recorded an underwriting profit for the quarter of $106.6 million, compared to $74.5 million in the first quarter of Gross premiums written for the quarter was $907.1 million, down by 7.5% compared to the prior year quarter. The decrease was primarily from International due to the nonrenewal of certain marine exposures as a result of the re-underwriting of this line, and in Casualty, from reduced renewals as a result of increased cedant retentions and reductions in participation on certain treaties. Net premiums earned increased by 0.3%, to $425.2 million, for the quarter compared to the prior year quarter, primarily due to increases in Bermuda Property Catastrophe, partially offset by a reduction in Property Treaty in Latin America. Healthy combined ratio of 74.9% for the quarter, compared to 82.4% for the prior year quarter. Excluding prior year development and the impact of natural catastrophe losses, the combined ratio for the quarter was 79.9% compared to 88.7% for the prior year quarter. During the quarter, XL s segment showcased its growing expertise and deep talent pool by: Expanding its Facultative footprint in the US with the opening of a Dallas, Texas office, led by Western Regional Manager Dean Wolfe, and a Philadelphia, Pennsylvania office led by Senior Underwriter Margaret LoSapio Promoting Guillermo Delfino to General Manager in Brazil Appointing Marcus Gonzales as General Manager UK Branch & Head of International Casualty Offices 7

8 Regional Contacts XL America, Inc. John Welch Managing Director XL Leadership Council President & CEO Direct Mobile Chris Buse Managing Director XL Leadership Council Manager, Casualty Treaty Stamford, CT Direct Mobile Steven P. Donnelly Senior Vice President Accident & Health Stamford, CT Direct Mobile Offices Bud Lockwood Managing Director XL Leadership Council Manager, US Property Treaty Stamford, CT Direct Mobile Tim Fisher Senior Vice President & Canadian Branch Manager Direct Mobile Kip Walker Managing Director XL Leadership Council Manager, Property Facultative Atlanta, GA Direct Mobile

9 Offices Argentina Maipu No st Floor (C1006 ACN) Buenos Aires Tel: Bermuda O Hara House One Bermudiana Road Hamilton HM08 Tel: Brazil Rua Dr. Renato Paes de Barros º Andar , São Paulo Tel: Canada 100 Yonge Street, Suite 1702 Toronto, Ontario M5C 2W1 Tel: Singapore 8 Marina View #40-45 Asia Square Tower 1 Singapore Tel: Switzerland Mythenquai 10 P.O. Box Zurich Tel: United Kingdom XL House 70 Gracechurch Street London EC3V OXL Tel: United States 115 Perimeter Center Place, Suite 545 Atlanta, GA Tel: plc, through its subsidiaries, is a global insurance and reinsurance company providing property, casualty and specialty products to industrial, commercial and professional firms, insurance companies and other enterprises throughout the world. plc s reinsurance companies are among the world s leading reinsurers. They offer products that include aerospace, property, casualty, marine and specialty. The world s top insurers choose us to help move their businesses forward. To learn more, visit xlgroup.com/ reinsurance. For a complete list of our underwriters, please visit our website. REINSURANCE WEB LINK: GO HERE. Colombia Carrera 7a No Oficina 802 Edificio ScotiaBank Bogotá, Colombia Tel: France 2 boulevard Marie et Alexandre Oyon CS Le Mans Cedex 2 Tel: +33 (0) rue Taitbout Paris Cedex 09 Tel: +33 (0) Ireland 1 Hatch Street Upper 4th Floor, Dublin 2 Tel: South LaSalle Street, Suite 600 Chicago, IL Tel: Dallas Parkway, Suite 770 Dallas, TX Tel: Constitution Plaza, 15th Floor Hartford, CT Tel: Broadway, 25th Floor New York, NY Tel: / Two Logan Square 100 N. 18th Street, Suite 300 Philadelphia, PA Tel: Seaview House 70 Seaview Avenue Stamford, CT Tel: This summary does not constitute an offer, solicitation or advertisement in any jurisdiction, nor is it intended as a description of any products or services of any of the Company s operating subsidiaries. Offices 1990 North California Blvd., Suite 740 Walnut Creek, CA Tel: is the global brand used by plc s reinsurance companies. is a trademark of plc companies. 9