MAKE YOUR WORLD GO. XL Group Reinsurance

Transcription

1 Re new Executive Group Report on the second quarter & first half of Our : solid underwriting and fast responses, the whole world over. MAKE YOUR WORLD GO 2012, 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. Executive Group * Based on analysis of 2010 financials by A.M. Best and Standard & Poor s Highlights 2

3 A leading global reinsurer Executive Group America Latin America Bermuda Europe/Asia Pacific Offices Offices Offices Offices Headquartered in Stamford, CT Buenos Aires, Argentina; Bogotá, Colombia; and Sao Pãulo, Brazil Hamilton, Bermuda Dublin, Le Mans, Paris, London and Zurich Branch offices in Atlanta, GA, Chicago, IL, Hartford, CT, New York, NY, Walnut Creek, CA, and Toronto, Canada Coverage Includes Property, Casualty, Accident and Health, Marine and Property Facultative Market Coverage is provided to insurance companies domiciled in the US and Canada 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 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 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 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 Second Quarter & First Half 2012 Thanks to disciplined underwriting and a fairly benign first half of the year in terms of insured losses, the capital position of reinsurers, including XL, continues to strengthen. This should be good news for the industry. To put it in perspective, a recent Guy Carpenter report estimated insured losses for the first half of the year to be $11 billion, dramatically lower than the first half of 2011, which experienced an estimated $76 billion of insured losses. The lighter losses during the first six months of this year translated into a generally good July 1 renewal period across the industry, particularly in the Property business with overall pricing in the U.S. alone estimated to be up by 5% year on year. At XL, we were broadly pleased with mid-year renewals even though rate increases on Southeast wind renewals were somewhat below our expectations. Nevertheless, this portfolio of business saw very healthy rate increases during the 2011 mid-year renewal period and remains the most attractive component of our Property Catastrophe portfolio, as measured by rate adequacy and our pricing system. In addition to this, we are seeing some signs of improvement in long tail businesses, but we continue to be vigilant as this part of the market remains competitive. While we are also carefully monitoring our exposure to the drought conditions in the U.S. Midwest and sympathize with the plight of farmers and others impacted, for the first half of the year we produced a profit in the crop business as a result of favorable prior year development and a profitable winter wheat season. We should have a much clearer picture of the situation at the end of the third quarter. However, what is evident now is our strong commitment to disciplined underwriting, reliable analytics and high quality service. These core strengths once again allowed us produce excellent results, including outstanding combined ratios of 72.6% for the quarter and 77.4% for the first six months of the year, resulting in an underwriting profit of $120.9 million and $195.4 million, respectively thereby contributing to XL s solid performance and steady progress overall and strengthening our capital position. This brochure provides details of these results and contact information for the various members of our talented team involved in making this happen. As always, we realize that we could not achieve such stellar results without the loyalty and support of trusted brokers and valued ceding partners. We hope that you, like XL, are encouraged by these results and optimistic about the year ahead. Executive Group James H. Veghte Executive Vice President & Chief Executive, s Operations 4

5 Executive Group 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 Executive Group 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 5

6 Financial Highlights Six months ended June 30, 2012 Gross premiums written:... $1.4 billion Net premiums earned:...$865.5 million Loss ratio: % Combined ratio: % Gross Premium Written by Region Six months ended June 30, 2012 Gross Premiums Written by Product Group Six months ended June 30, 2012 Executive Group 5.0% Asia Pacific 31.5% Bermuda 40.5% Europe 5.0% Latin America 18.0% North America 10.4% Casualty Professional 16.0% Casualty Other 8.6% Marine & Energy, Aviation & Satellite 3.8% Other 32.2% Property CAT 29.0% Property Other 6

7 Key Results At and for the three months ended June 30, 2012 Strong second quarter underwriting results included a combined ratio of 72.6%. This resulted in an underwriting profit of more than $120.9 million for the quarter Excluding prior year development and the impact of natural catastrophe losses, the combined ratio for the quarter was 83.2% compared to 90.0% for the prior year quarter Gross premiums written for the quarter were $452.4 million, down by 4.2% compared to the prior year quarter primarily due to International Casualty and North America Property lines Net premiums earned increased by 10.8% to $441.7 million for the quarter compared to the prior year quarter During the quarter XL s Segment again demonstrated its expertise in many ways, including: Re-entering the crop insurance business in the western United States The London aviation team being recognized for the third consecutive year as Best Aviation Team during the annual Reactions London Market Awards Gaining traction on our entrance into the Accident & Health reinsurance market Chief Executive of Operations Jamie Veghte representing XL in an executive panel discussion at the Standard & Poor s annual insurance conference in New York President & Chief Underwriting Officer for Bermuda Operations Charles Cooper and Senior Vice President and Underwriter Mark Berry participating in panel discussions at the Insurance Day Bermuda Summit Executive Group 7

8 Financial Highlights For the Year Ended December 31, 2011 : Financial Ratings Ratings accurate as of February 25, 2011 : Financial Highlights Year ended December 31, 2011 A (Stable) A (Stable) A.M. Best Standard & Poor s Gross Premiums Written: $2.1 billion Net Premiums Earned $1.7 billion Loss Ratio: 67.8% Combined Ratio: 97.8% Gross Premiums Written by Region Year ended December 31, 2011 Gross Premiums Written by Product Group Year ended December 31, 2011 Executive Group 3.2% Asia Pacific 21.7% Bermuda 28.9% Europe 9.3% Latin America 36.9% North America 10.5% Casualty Professional 14.1% Casualty Other 7.5% Marine & Energy, Aviation & Satellite 4.7% Other 22.3% Property CAT 40.9% Property Other 8

9 Regional Contacts XL Re Ltd Bermuda Charles Cooper Managing Director XL Leadership Council President & Chief Underwriting Officer Direct Fax Mobile Derrick Irby Paul Simons Mark Berry Tristan Abend Executive Vice President & Chief Financial Officer s Operations Direct Mobile derrick.irby@xlgroup.com Senior Vice President, Head of US Property Treaty (BDA) Direct Mobile paul.simons@xlgroup.com Managing Director XL Leadership Council Senior Vice President, International Property & Specialty (BDA) Direct Mobile mark.berry@xlgroup.com Vice President, International Property Treaty Underwriter (BDA) Direct Fax Mobile tristan.abend@xlgroup.com Executive Group Megan Kempe Lindsay Botelho Heejae Cho Underwriter Direct megan.kempe@xlgroup.com Associate Underwriter Direct lindsay.botelho@xlgroup.com Underwriting Analyst Direct Mobile heejae.cho@xlgroup.com 9

10 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: Singapore 30 Cecil Street #16-02 Prudential Tower Singapore Tel: Switzerland Mythenquai 10 P.O. Box Zurich Tel: United Kingdom XL House 70 Gracechurch Street London EC3V OXL 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. Canada 100 Yonge Street Suite 1702 Toronto, Ontario M5C 2W1 Tel: 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 Upper Hatch Street 4th Floor, Dublin 2 Tel: United States 115 Perimeter Center Place Suite 545 Atlanta, GA Tel: South LaSalle Street Suite 600 Chicago, IL Tel: Constitution Plaza 15th Floor Hartford, CT Tel: Broadway, 25th Floor New York, NY Tel: / North California Blvd. Suite 740 Walnut Creek, CA 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. Executive Group is the global brand used by plc s reinsurance companies. is a trademark of plc companies. 10