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London-based Liberty Specialty Markets (LSM), which is part of Liberty Mutual Insurance Group, has joined the Lloyd’s China platform.
LSM’s Underwriting Division of Lloyd’s Insurance Company (China) Ltd. (LICCL) has appointed Eve Li as its first representative in Beijing, China.
Li is based at LICCL’s Beijing branch and will underwrite a range of reinsurance business lines for LSM’s underwriting division of LICCL. She was formerly a China-based Energy and Construction Underwriter for Liberty, a position she held for five years.
Previously LSM had underwritten Chinese reinsurance business via its London and Paris offices, but Li’s appointment means that treaty and facultative reinsurance lines of business can now be written locally in China by LSM’s Underwriting Division of LICCL, the company said in a statement.
An LSM spokesman explained that Lloyd’s managing agents and their syndicates are not individually licensed by the China Insurance Regulatory Commission but instead join the Lloyd’s China platform via an “underwriting division,” which is set up for an individual syndicate.
LSM’s Underwriting Division is not an independent legal entity but is a department of Lloyd’s China, the spokesman explained.
“For the business written by the Liberty Specialty Markets Underwriting Division, Lloyd’s China will cede the risks to LSM’s syndicate through a retrocession agreement,” he added.
John McCammon, LSM’s head of international network offices, said: “Growing our presence in China has always been our goal as we see considerable potential in this market. We are now planning to add to our Beijing presence with a new representative in Shanghai during 2016. This move also allows us to continue underwriting Chinese reinsurance risks in the most effective way possible given the regulatory changes taking place in China.”
The move is part of LSM’s plan to increase penetration into international markets – the “hub” strategy outlined in 2015 by president and managing director Nick Metcalf who said that the company wants to build a presence in significant insurance hubs outside of London because of their ability to attract business in local markets.
Source: Liberty Specialty Markets