September 2016 MARINE, AVIATION & POLITICAL RISK Divisional Brochure London Office 21 Lombard Street, London EC3V 9AH Tel: +44 (0) 20 7050 9000 Bermuda Office Maxwell Roberts building, 5th Floor Church Street 1 HM 11 Hamilton Bermuda Tel: +1 441 278 86 00 enquiries@novae.com www.novae.com Novae Syndicates Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Novae Bermuda Underwriting Limited is authorised and regulated by the Bermuda Monetary Authority. 1 MARINE, AVIATION & POLITICAL RISK This brochure was prepared for brokers only. MARINE, AVIATION & POLITICAL RISK 1
2016 INTERIM GROSS WRITTEN PREMIUM 2015 GROSS WRITTEN PREMIUM 4% 30% MAP 147.3m GWP 66% Aviation Reinsurance Marine & Energy Credit & Political 32% MAP 8% 241.2m GWP 60% Aviation Reinsurance Marine & Energy Credit & Political 28% 2% PROPERTY 258.1m GWP 70% Property Insurance Property Reinsurance Agriculture & Bloodstock 19% 11% PROPERTY 362.5m GWP 70% Property Insurance Property Reinsurance Agriculture & Bloodstock 23% CASUALTY 107.7m 59% 18% GWP Specialty Liability General Liability & Motor Casualty Reinsurance 25% 16% CASUALTY 183.3m 59% GWP Specialty Liability General Liability & Motor Casualty Reinsurance ABOUT NOVAE Novae is a diversified property and casualty (re)insurance business operating through Syndicate 2007 at Lloyd s. The Group is based in London and has been listed on the London Stock Exchange since 1998. The development and diversification of Novae s underwriting portfolio, combined with a prudent approach to reserving and disciplined expense management is integral to achieving market leading performance across the Group. 2016 INTERIM FINANCIAL HIGHLIGHTS Gross written premium of 513.1 million (H1 2015: 463.1 million) Combined ratio of 96.1% (H1 2015: 89.8%) Net investment income of 28.4 million (H1 2015: 3.8 million) Profit before tax and foreign exchange of 37.9 million (H1 2015: 29.0 million) 2015 FINANCIAL HIGHLIGHTS Gross written premium of 787.0 million (2014: 638.5 million) Combined ratio of 90.8% (2014: 91.0%) Net investment income of 6.8 million (2014: 14.3 million) Profit before tax and foreign exchange of 54.9 million (2014: 52.4 million) MARINE, AVIATION & POLITICAL RISK 3
UNDERWRITING APPROACH CLAIMS COMMITMENT Expert underwriting is fundamental to Novae s position as a leading innovative specialty insurer. By cultivating, developing and maintaining knowledge and capabilities in speciality classes of business, the Group is able to deliver excellence in products and service. Central to achieving this is the recruitment and retention of high quality underwriters who have track records of delivery across the market cycle and deeprooted relationships with brokers and insureds. Novae invests heavily in its underwriting talent, both external hires and home grown talent. Underwriting units are organised into three operating divisions: Property, Casualty, and Marine, Aviation & Political Risk (MAP). This approach improves visibility around performance, assists in the development of new sub-classes, facilitates more efficient reinsurance buying and supports organic growth. John Owen Marine, Aviation & Political Risk Divisional Head Tel: +44 (0) 20 7050 9464 jowen@novae.com Novae is committed to providing a high quality claims service to all its customers, recognising and understanding their diverse needs across a broad range of underwriting classes. It aims to respond to all claims promptly and fairly. Novae s experienced adjusters operate in specialist teams to ensure the right person is handling customers claims. These teams adopt a proactive approach to case management, supported where appropriate by third party technical and legal experts to ensure the timely, effective resolution of claims. The Group s flat management structure allows adjusters to rapidly escalate issues to senior decision makers, thereby further accelerating the claims handling process. Novae seeks to establish long-term relationships with all stakeholders, and is accordingly committed to maintaining the highest standards of professionalism and integrity and to communicating with brokers and insureds with clarity and transparency. Mark Batterbury Group Claims Director Tel: +44 (0) 20 7050 9162 mbatterbury@novae.com DIVISIONAL APPROACH Caroline Koczerzat Deputy Divisional Head Tel: +44 (0) 20 7050 9549 ckoczerzat@novae.com The Marine, Aviation & Political Risk (MAP) division accounted for 30.6% ( 241.2 million) of Novae Group s gross written premium in 2015. The portfolio consists of four major areas, Marine, Energy, Aviation reinsurance and Political Risk. All areas are long established within Novae and have consistently produced significant underwriting profits for the Group. In the last 12 months we have invested heavily across several areas of the MAP division. In Marine insurance, we have hired lead underwriters in Hull, War and Cargo, to complement our existing expertise as a leading underwriter of Marine Liability. We have created a new Renewable Energy unit and reinvigorated our Political Risk unit through the promotion of a new unit head, recruitment of a new Crisis Management team leader and expanded underwriting capabilities throughout the unit. In 2016 we will continue to invest in MAP, with further underwriting appointments expected to add to the successful growth of the division. 4 MARINE, AVIATION & POLITICAL RISK MARINE, AVIATION & POLITICAL RISK 5
Darren Carr Head of Marine Tel: +44 (0) 20 7050 9475 dcarr@novae.com Lee Gammon Senior Tel: +44 (0) 20 7050 9477 lgammon@novae.com Paul Hartley Tel: +44 (0) 20 7050 9478 phartley@novae.com MARINE LIABILITY Novae s Marine Liability unit has expertise across a broad spectrum of marine and energy exposures. Novae is a recognised Lloyd s leader in the field of marine liability. The Marine Liability unit works closely with brokers to offer tailormade liability insurance and reinsurance solutions to the shipping and offshore energy industries. Insureds include shipowners, vessel charterers, port authorities, terminal operators, stevedores, warehouse keepers, freight forwarders and marine contractors. The unit writes primary and excess insurances, and policies can incorporate both marine and non-marine liability. It has a maximum line size of $50 million for marine liabilities and $25 million for energy liabilities. Paul Hartley Tel: +44 (0) 20 7050 9478 phartley@novae.com James King Tel: +44 (0) 20 7050 9479 jking@novae.com MARINE COMMERCIAL COMBINED LIABILITY Novae s Marine Commercial Combined Liability unit is a class-leading provider of marine insurance to the UK marine industry. The Puffin product, as it is known to the market, offers flexible and tailor-made insurance solutions for insureds, such as port authorities, terminal operators, stevedores, warehouse keepers, marine contractors, ship operators, agents and charterers. Clients range from small contractors to multi-national businesses who have exposure to the marine industry, with risks normally covered on a 100% line size basis. The unit offers up to 10 million employers liability and 10 million public/products liability limits, with the ability to tailor limits to insureds needs. In addition to participating on a portfolio of large accounts on a traditional Lloyd s quota share basis, the Marine Liability unit has developed a particularly strong offering for SMEs, writing 100% of primary limits. A large team of underwriters provides a service driven approach, transacting business both in and outside of Lloyd s. Novae s Marine Liability account was established in 1999 and has grown significantly since, consistently providing underwriting profit for the Syndicate. An ambitious and dynamic team of underwriters is led by Unit Head Darren Carr. Business is written at Lloyd s and through coverholders on a global basis. The philosophy of the team is to understand the needs of clients, which allows them to have a flexible and solution based approach to risk. The unit prides itself on giving a high level of service, offering direct access to the decision-making underwriters, a policy issuance service, and prompt and efficient claims handling. The unit was established in 2004 and developed in conjunction with brokers. It is led by Paul Hartley and has a proven track record of client management, as evidenced by high retention rates. The unit is based in London and writes predominantly UK business, but has been successfully expanded into Europe and Australasia. For details of the full Marine Liability team, visit the website. For details of the full Marine Commercial Combined Liability team, visit the website. 6 MARINE, AVIATION & POLITICAL RISK MARINE, AVIATION & POLITICAL RISK 7
MARINE HULL MARINE WAR Richard Bridges Unit Head Hull & War Tel: +44 (0)20 7050 9474 rbridges@novae.com Ross Deering Hull & War Tel: +44 (0)20 7050 9543 rdeering@novae.com The Marine Hull unit has a wealth of underwriting experience across a variety of disciplines within the marketplace. The team works closely with brokers to deliver expert insurance and reinsurance solutions to shipowners, ship managers, financiers and pleasure craft owners. The diverse portfolio includes oceangoing tonnage such as bulkers, tankers, containerships, passenger vessels and cruise ships. There is a strong focus and expertise in the wide range of specialist vessels which support the oil, gas and renewable energy industries extending from tugs, barges and multipurpose supply vessels to pipelayers, research vessels and liftboats. The team also specialises in construction risks, yachts, excess hull and machinery, increased value/total loss insurance, mortgagees interests and port risks. The maximum line size offered is $40 million. Ross Deering Hull & War Tel: +44 (0)20 7050 9543 rdeering@novae.com Richard Bridges Unit Head Hull & War Tel: +44 (0)20 7050 9474 rbridges@novae.com Novae s Marine War unit offers global marine war and piracy coverage across physical damage, loss of hire and protection and indemnity insurances. Novae is a market leader in Marine War, working closely with brokers to offer bespoke insurance and reinsurance solutions. Its agile structure means the unit can provide a one-stop-shop for war and kidnap and ransom coverage, giving shipowners and charterers the cover and peace of mind to support their commercial operations. The maximum line size offered is $60 million. The team s underwriting philosophy is centred on developing longstanding and mutually beneficial relationships, underpinned by a highly technical and proactive knowledge base and an unrivalled service to brokers and clients alike. The Hull account has undergone a number of changes in 2016, with the addition of two new underwriters with a combined market experience of almost 40 years. The account is targeting controlled and sustainable growth. Business is written via a single platform at Lloyd s providing the agility that is required to effectively target an internationally domiciled client base. As a recognised market leader within War, Novae provides superior service levels to both clients and brokers. This offering is further enhanced by the use of security advisors to keep abreast of the prevailing political and piracy risks, as well as recommendations on their mitigation. Lloyd s has long been the centre of excellence for Marine War risks and Novae is at the heart of this in terms of technical knowledge and unrivalled service. The Novae War team is the leader of a number of high profile war accounts within the Market, as well as participating on most of the major market facilities. It is led by Unit Head Richard Bridges, and the team has approaching 40 years combined experience. The territories offered within the War account are worldwide, including the piracy high risk areas of the Gulf of Aden, Indian Ocean and Nigeria. 8 MARINE, AVIATION & POLITICAL RISK MARINE, AVIATION & POLITICAL RISK 9
CARGO & SPECIE MARINE REINSURANCE Caroline Koczerzat Deputy MAP Divisional Head Tel: +44 (0) 20 7050 9549 ckoczerzat@novae.com David Axtell Tel: +44 (0) 20 7050 9470 daxtell@novae.com Novae insures international cargo and specie business via the Lloyd s platform. Clients range in size from Fortune 100 companies to insureds sending a single shipment overseas. Direct and reinsurance business is written in the open market, via broker or producer facilities and MGAs. Bespoke coverage is given for goods in transit, goods in store and cargo stock throughput. Specie business is also underwritten for fine art, cash in transit and other valuable goods requiring bespoke cover. The maximum line size offered is $50 million. Stephen Haynes Tel: +44 (0) 20 7050 9481 shaynes@novae.com Selina Lu Tel: +44 (0) 20 7050 9480 slu@novae.com The Marine Reinsurance unit is a respected market leader providing non-proportional marine and energy reinsurance to international (non-lloyd s) based clients. It offers both traditional and bespoke reinsurance solutions based on the individuality of clients results, profiles and needs. The broad geographically diverse account includes ocean, coastal and inland hull, cargo, specie, marine liability, pleasure craft, upstream and downstream energy, ports and terminals, and marine whole accounts. The normal maximum capacity for any one programme is $5 million. In a fast-moving market, the Cargo & Specie unit specialises in finding constructive, timely solutions to brokers problems. It places a particular emphasis on the provision of exemplary service to all business producers, and, consistent with Novae s aspiration to be a major London Market Lead across its Marine portfolio, is looking to lead an increasing proportion of the business that it writes. Novae s Cargo & Specie unit is one of the most experienced in the market. A proven team of underwriters is led by Unit Head Caroline Koczerzat, who has a 35-year track record as a specialist lead cargo underwriter, delivering consistent profitability. Caroline is also Deputy Divisional Head for MAP. The unit writes business worldwide. The unit typically leads or plays a significant supportive role in the placement process and has a proven reputation for adapting to clients reinsurance needs. The team is flexible and agile, and always looking to adapt to the changing marketplace. It endeavours to respond in a timely manner and offers a consistent level of service regardless of client/broker stature. The unit has over 40 years collective experience and, despite challenging insurance and reinsurance market conditions, has delivered consistent crosscycle performance since it was established in 2009. It is led by Stephen Haynes, who has been in the reinsurance industry for thirty years. Novae writes marine reinsurance business globally, with a particularly strong presence within Asia, Europe, North America, Africa and the Middle-East. For details of the full Cargo & Specie team, visit the website. For details of the full Marine Reinsurance team, visit the website. 10 MARINE, AVIATION & POLITICAL RISK MARINE, AVIATION & POLITICAL RISK 11
AVIATION REINSURANCE ENERGY Andy Hartley Unit Head Tel: +44 (0) 20 7050 9461 ahartley@novae.com Phil Taylor Deputy Unit Head Tel: +44 (0) 20 7050 9462 philtaylor@novae.com With a particular expertise in providing catastrophe XOL cover, Novae s Aviation Reinsurance unit is a recognised market leader in the class and has developed a network of strong relationships with clients and brokers. In addition to its core account of major risk XOL, the unit also offers cover for General Aviation XOL, Aviation Pro Rata and Space Pro Rata. The emphasis is based on providing ongoing solutions for reinsurance partners, and the success of this approach is borne out by a significant client base, the majority of whom have reinsured with the unit across the market cycles. Jason Poulastides Unit Head Tel: +44 (0) 20 7050 9469 jpoulastides@novae.com Cliff Payne Tel: +44 (0) 20 7050 9468 cpayne@novae.com Specialising in oil and gas, Novae s Energy unit underwrites a broad range of energy risks around the world. The focus is predominantly on London market upstream energy risks, but downstream business is also underwritten within integrated policies. The account includes offshore and onshore physical damage (fixed platforms, pipelines and mobile units), Operator s Extra Expenses (OEE), third party liability and loss of production income. The risk appetite also embraces more niche areas of the portfolio such as construction all risks, Gulf of Mexico wind and downhole tools coverage. The unit has a maximum line size of $125 million. Chris Hazel Tel: +44 (0) 20 7050 9466 chazel@novae.com The Aviation Reinsurance unit seeks to understand the individual reinsurance needs of its clients and create solutions that are effective and remain relevant in an ever-changing market. The team invests time and resource into building relationships and maintaining excellent service delivery. It strives to respond to requests quickly, provide constructive feedback, and pay claims in a timely and efficient manner. The Aviation Reinsurance account was established in 2000 and is underwritten by Andy Hartley and Phil Taylor. Between them Andy and Phil have over 50 years experience giving them a deep understanding of the class. Since 2000 the unit has provided capacity on a lead or major following basis and due to its agile and flexible approach has built up a worldwide client base, the majority of whom have a longstanding relationship with Novae. The Aviation team writes business across the world. Novae s Energy unit takes a highly technical approach to this specialist class of business. The book is mainly package-based business with a focus on the production side of the market, which is short tail in nature. An agile unit, it is responsive and adapts to the changing needs of an evolving market. The Energy unit is service led, with a reputation for consistency and quick turn-around of business. Novae has written this class of business since 2006 with a strong reputation and track record of profitability. The team is made up of 5 people, including 3 underwriters with over 60 years experience between them. It is led by Unit Head Jason Poulastides, who has been underwriting energy insurance since the 1990s and joined Novae in 2006. The territories underwritten are worldwide with a focus on the major onshore and offshore oil and gas production areas. These include the North Sea, Gulf of Mexico, onshore North America, West Africa, Middle East, former Soviet Union and Australasia. For details of the full Energy team, visit the website. 12 MARINE, AVIATION & POLITICAL RISK MARINE, AVIATION & POLITICAL RISK 13
RENEWABLE ENERGY POLITICAL RISK James Green Tel: +44 (0) 20 7050 9490 jgreen@novae.com Valeria Del Villano Tel: +44 (0) 20 7050 9121 vdvillano@novae.com Novae s Renewable Energy unit specialises in all key renewable energy sectors, across the full life-cycle of such projects, and on a global basis. The unit offers holistic underwriting solutions for the industry, and is distinctive for writing emerging new technologies, and offering both core and complementary ancillary products. Clients include contractors, developers, owners, operators, manufacturers and financiers across a range of sectors including; wind power (onshore and offshore), solar, bioenergy, hydro, geothermal, wave and tidal, and other emerging technologies. Risks include pre and early works cover, transit (marine and inland) and stock throughput, construction, advanced loss of profits, operation, business interruption (including contingent business interruption), decommissioning, natural catastrophe risks, general/third party liabilities and employers liability. Richard Lamb Unit Head Tel: +44 (0) 20 7050 9484 rlamb@novae.com Novae is a recognised market leader offering a range of credit and political risk insurance products for a variety of clients including banks, commodity traders, miners, construction companies and general manufacturers. The account includes a broad range of contract, confiscation and physical damage risks including non-payment, non-delivery, embargo, force majeure, confiscation, expropriation, forced abandonment, and destruction of property due to war, strikes, riot and civil commotion. The unit is increasingly focused on writing longer-term strategic business, with a particular emphasis on strategic infrastructure projects. The maximum line size offered is $50 million for political risks and $30 million for credit risks. The Renewable Energy unit has a thorough knowledge of the industry, allowing it to offer tailored, packaged and robust solutions to brokers and clients. It prides itself on its ability to offer thought leadership, flexibility and quick decisions. The unit synergises with other Novae product lines to provide holistic solutions that meet the evolving needs of this rapidly growing industry. It also offers loss mitigation, control and risk engineering services through a network of approved external partners. Novae has a history of writing renewable energy business under the auspices of other classes and established a dedicated Renewable Energy unit in 2015. It is led by James Green and Valeria Del Villano, who bring extensive market experience from a number of leading firms. The Renewable Energy unit utilises the Lloyd s network to its fullest extent, operating globally. Its criteria when writing business is focused more around technology than territory. The Political Risk unit has wholeheartedly adopted Novae s underwriting philosophy and believes in empowering its underwriters, rather than making decisions by committee. This allows the unit to respond rapidly, making decisions with speed and insight, and thereby achieving a level of service which differentiates it within the market. Novae began writing Political Risk business in 2000, when the unit was established by John Owen. John retains an active involvement but now heads Novae s Marine, Aviation & Political Risk division; the Political Risk unit is led by Richard Lamb. It has enjoyed consistent growth year on year, and is a market leader with premium income of over 50 million. The unit considers risks from around the world, but most business is written in emerging markets and particularly Africa, Latin America and Asia. For details of the full Political Risk team, visit the website. 14 MARINE, AVIATION & POLITICAL RISK MARINE, AVIATION & POLITICAL RISK 15
POLITICAL VIOLENCE CRISIS MANAGEMENT Elizabeth Heslip Senior Tel: +44 (0) 20 7050 9488 eheslip@novae.com Tom Simpson Tel: +44 (0) 20 7050 9489 tsimpson@novae.com The Political Violence unit underwrites terrorism, terrorism liability, war on land and political violence risks. It provides capacity primarily as a following line and will consider underwriting risks worldwide. Individual risks can include physical damage, business interruption, loss of gross profit, revenue or income, and increased cost of working. Target sectors for the unit range from hotels and airports, to leisure and entertainment venues and industrial corporations. The unit also writes cyber terrorism in collaboration with Novae s Cyber offering. The book is weighted towards terrorism, with a 70:30 terrorism : war business split. The unit has a maximum line size of $50 million for terrorism and war. Kieron Russell Senior Tel: +44 (0) 20 7050 9542 krussell@novae.com Callum Bennett Tel: +44 (0) 20 7050 9463 cbennett@novae.com Novae s Crisis Management team offers an experienced, versatile approach to crisis management insurance on a worldwide basis. Its broad client base encompasses shipowners, charterers, retailers and general manufacturers. The account includes marine kidnap and ransom, ransom monies, in-transit loss of monies, consultant costs, legal liability, product recall, recall costs, replacement costs, business interruption, reputational harm and brand impairment. The unit has a maximum line size of $20 million. The Political Violence market is highly competitive and constantly changing, with clients facing ever-more complex and uncertain exposures. Novae s response is to be agile and innovative; it is constantly evaluating its risk selection criteria and bringing new products and solutions to the market. The unit has predominantly operated as a follow market but plans to lead business moving forward, and will expand the team accordingly to achieve this. Novae started underwiting this account in 2007 and in recent years the unit has grown quickly. Its portfolio includes a number of renowned brokers and its promising growth potential has led to an increase in line size for 2016. The Political Violence team has over 25 years combined experience in the market and is led by Senior Elizabeth Heslip, who has been in Lloyd s since 2003 and with Novae since 2013. The unit will consider underwriting risks worldwide, with larger lines offered in lower risk territories such as USA and Europe. The Crisis Management team specialises in non-standard risks and develops products to meet the developing needs of an evolving market. These products are often intangible, covering risks that are difficult to quantify, and as such are not widely available in the market. Novae seeks to recruit top industry talent to deliver innovative solutions to a diverse client base and has ambition to become a market lead. The team was established in 2012 and is led by Kieron Russell. Kieron s experience includes both brokering and underwriting crisis management business. The Crisis Management unit writes business globally. For details of the full Political Violence team, visit the website. 16 MARINE, AVIATION & POLITICAL RISK MARINE, AVIATION & POLITICAL RISK 17
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