Royalton Capital Investors II, L.P.

Report
CertAsig and Marine Underwriting in Turkish Market
James Grindley - CEO
Istanbul, 28th March 2011
Who is CertAsig?
•
CertAsig is a specialist, non-life insurance company licensed by the Romanian Insurance Supervisory
Commission (CSA)
•
Ultimate investors include: European Bank for Reconstruction & Development (EBRD) & European
Investment Fund (EIF)
•
Our business model is to work primarily with insurance brokers and to target corporate SME clients
•
CertAsig focuses on ‘more technical’ and specialist insurance products
•
Avoid chasing market share – a common strategy of ‘top 10’ insurers in Romania
•
Romania is our core market but expansion to other CEE countries will be considered carefully - Turkey is
already an important market for marine
•
CertAsig team includes 45 insurance professionals with 6 offices – the team is dedicated to brokers and
clients
•
CertAsig intends to obtain a rating from a market-respected rating agency
2
Shareholder structure
• Majority owner (92%) of CertAsig is European private equity fund
Royalton Capital Investors II (“RCI II”), managed by Royalton
Partners
• Main investors in RCI II are:
•
•
•
•
European Bank for Reconstruction & Development (EBRD)
European Investment Fund (EIF)
Various pension funds & other banks
CertAsig Management
3
Specialist products
Commercial & Industrial Property Insurance (All Risks with optional Business Interruption)
Construction, Plant & Machinery Insurance
Motor CASCO Insurance
Electrical Equipment Insurance
Contractors All Risks (CAR)
Bond Insurance
General Third Party Liability, Employer’s Liability Professional Liabilities
Goods in transit / cargo
Marine Insurance (ships, vessels, hull& machinery, Protection & Indemnity) 
General Aviation Insurance (private jets, helicopters)
Medical mal-practice
Event insurance
Health Insurance
Personal Accident Insurance
Household insurance (buildings, contents & liabilities)
4
Evolution of portfolio by Gross Written Premium
5
Marine Insurance is a broker-driven market
 Ship-owners and managers generally use specialist brokers to obtain
insurance
 Marine insurance brokers earn commissions between 15% to 25% of
Gross Written Premium
 Leading insurers for Turkish market include:
 Turkish insurers
 Lloyd’s Syndicates & London market
 Russian & European insurers
6
Marine products and underwriting criteria for Turkey
Products
Underwriting Criteria
 Hull and Machinery for blue
and brown water vessels
 All vessels underwritten on a case-by-case basis; underwriting authority is
never delegated
Protection and Indemnity for
small and medium vessel (big
oil tankers excluded)
 Background / experience of operator, skipper (yacht insurance), shipyard,
ship repairer, are checked before quoting
 Builder’s risks
 Ship repairers’ liability
 Pleasure crafts
 Bucharest and Constanta offices are active in selling marine business
 Core target business is CEE, Turkey, Black Sea-domiciled managers /
operators / owners but all European managed vessels considered
 Pre-entry condition survey is required for vessels older than 10 years,
rendered by underwriters’ agreed surveyors
Port authority / operator liability
 Loss record for previous 3-5 years is required and checked; tighter terms and
conditions or cover refused for business with high loss record
 Cargo / fine art
 Terms and conditions used are similar to London wordings
 Specie and cash in transit
 Terms are calculated using benchmark London market indications, facultative
reinsurance terms regularly obtained for comparison
 Cargo liability (CMR)
 Restrictive terms offered for over age vessels , Cl. 280 FPA ucb, Cl. 284 or
Cl. 289 at underwriters’ discretion or higher additional machinery deductibles
imposed
 Fast response to brokers, usually same day – significant differentiator in the
market
 English law and jurisdiction is preferred; however local jurisdiction of original
assured could be accepted
 CertAsig is a quoting market with at least 80% of business underwritten
100%.
Marine Business
7
Reinsurance
Key points
Security
 Marine Reinsurance Programme is underwritten by:
Lloyd’s, Hannover Re, Flagstone Re & other reinsurers with rating of A- or better
Marine Hull, Protection & Indemnity, Cargo & General Aviation
 Non-proportional excess of loss treaty
 Capacity up to USD 10,000,000 (USD 9,750,000 xs USD 250,000)
8
Reinsurance
THANK YOU FOR YOUR ATTENTION !
9

similar documents