Reignite MAKE YOUR WORLD GO. XL Group Reinsurance

Transcription

1 Reignite Executive Group Report on the first quarter of Our : solid underwriting and fast responses, the whole world over. Offices MAKE YOUR WORLD GO 2012, pc companies. All rights reserved. 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 Offices * 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 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, 2012 If the first quarter is any reflection of the year ahead, we should be looking forward to a promising Not only did the industry benefit from low catastrophe activity but, according to AonBenfield s Market Outlook published in April, analyst consensus earnings for public reinsurers predict industry returns on equity rebounding from 3 percent in 2011, due to catastrophe losses and lower investment yields, to the 10 percent range in 2012 and During April 1 renewals, which are mainly concentrated within the Japanese market, there were clear signs of improvement primarily driven by the 2011 Japan earthquake and tsunami and the flooding in Thailand. The experience of such major losses within a single year reinforced the value of reinsurance. While we would have liked to see more fundamental changes in the way the Japanese market is structured at the April 1 renewal, there was enough improvement for XL s Operations to increase our overall aggregates by 53% as compared to April renewal. We are also seeing some progress in the U.S. Casualty market, particularly Excess Liability and E&O. Yes, the winds of change are finally starting to blow across the industry. Positive pricing momentum with improving terms and conditions are evident in certain lines of business, particularly catastrophe exposed short tail lines. Based on this, we expect that U.S. mid-year wind renewals will continue to move in a positive direction. While there is clearly still room for improvement in various geographies and business lines, particularly in the Casualty area in general, by adhering to our core strengths of disciplined underwriting, reliable analytics and high quality services we believe that we can continue to weather any challenging, competitive conditions. This confidence is based on our Operations track record of success, which includes producing an underwriting profit for six consecutive years and achieving very good results during the first quarter of this year. In turn, this contributed significantly to XL s overall solid performance and progress. You can read more about our first quarter results, our key contacts and the coverage we offer in this brochure. Of course, we are proud of our performance but we realize that we could not have accomplished these results without the support of trusted brokers and ceding partners. So thank you for your continuing confidence in us. Given the improving environment, XL s global footprint, deep talent pool, and long-term market relationships, I am optimistic about the year ahead for our industry and for XL. Executive Group Offices 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 Offices 5

6 Financial Highlights Three months ended March 31, 2012 Gross Premium Written by Region Three months ended March 31, 2012 By region 6.0% Asia Pacific 16.3% Bermuda 20.8% Europe 5.7% Latin America 51.2% North America Executive Group Gross Premiums Written by Product Group Three months ended March 31, 2012 By product group 9.6% Casualty Professional 20.0% Casualty Other 10.1% Marine & Energy, Aviation & Satellite 5.6% Other 28.8% Property CAT 25.9% Property Other Offices 6

7 Key Results Three months ended March 31, 2012 Financial highlights (Three months ended March 31, 2012) Gross premiums written:...$980.3 million Net premiums earned:...$423.8 million Loss ratio: % Combined ratio: % key results and activities (Three months ended March 31, 2012) Solid underwriting results included an attractive combined ratio of 82.4%, resulting in an underwriting profit of approximately $75 million. Excluding prior year development and the impact of natural catastrophe losses, the combined ratio was 88.7% compared to 87.7% for the prior year quarter. Gross premiums written for the quarter were $980.3 million, up by 11.8% compared to the prior year quarter. The increase was primarily from the International Casualty business. Net premiums earned increased by 7.1% to $423.8 million for the quarter compared to the prior year quarter. Subsequent to the end of the first quarter, the extensive talent and bench strength of XL s operations were once again demonstrated by the following: Appointment of former Chief Financial Officer John Hume to the new role of Head of Finance Operations for Promotion of Derrick Irby to Executive Vice President and Chief Financial Officer for the (non-life) operations Promotion of Gino Smith to Latin America Regional Chief Underwriter Promotion of Alexander Hanks to Latin America Chief Actuary Executive Group Offices 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 By region 3.2% Asia Pacific 21.7% Bermuda 28.9% Europe 9.3% Latin America 36.9% North America By product group 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 Offices 8

9 Regional Contacts XL America, Inc. John Welch Managing Director XL Leadership Council President & CEO Direct Mobile Chris Buse Robert Copp Steven P. Donnelly Managing Director XL Leadership Council Manager, Casualty Treaty Stamford, CT Direct Mobile Manager, Ocean Marine Stamford, CT Direct Senior Vice President Accident & Health Stamford, CT Direct Mobile Executive Group Offices Bud Lockwood Brian Udolph Kip Walker Managing Director XL Leadership Council Manager, US Property and Marine Treaty Stamford, CT Direct Mobile Canadian Branch Manager Chicago, IL Direct Managing Director XL Leadership Council Manager, Property Facultative Atlanta, GA Direct Mobile

10 Offices Argentina Maipu No st Floor (C1006 ACN) Buenos Aires Tel: Singapore 30 Cecil Street #16-02 Prudential Tower Singapore 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. Bermuda O Hara House One Bermudiana Road Hamilton HM08 Tel: Brazil Rua Dr. Renato Paes de Barros º Andar , São Paulo Tel: Switzerland Mythenquai 10 P.O. Box Zurich Tel: United Kingdom XL House 70 Gracechurch Street London EC3V OXL Tel: 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: Executive Group Offices 10