Swiss-based Converium recorded successful renewals of its of non-life treaties as of April 1. The Company said it “bound non-life contracts of US$ 272.2 million or 99.5 percent of the business that was up for renewal. This result is fully in line with previously stated expectations.”
The April 1 renewals primarily included business written in Asia Pacific, as well as from the Medical Defence Union (MDU) in the U.K., a provider of medical malpractice insurance coverage with whom Converium has had a long-standing strategic alliance.
Converium also noted that it had renewed “some smaller Latin American and US casualty portfolios;” however, it said: “Consistent with its underwriting strategy Converium chose not to renew US casualty business. Not taking into account this US book of business, overall premium volume from the April 1 renewal has increased by 3.7 percent.”
In the Asia-Pacific region Converium said it “bound non-life business of US$ 62.4 million, a minor decrease of 1.6 percent. In the Japanese market, which accounts for two thirds of the renewed Asia Pacific book of business, premium volume was reduced by 2.9 percent. Converium, however, successfully maintained its strong position with the largest Japanese clients. In South Korea and India, the Company’s book of business grew by 2.4 percent and 16.2 percent, respectively.
“Given the trend of clients retaining more risk and the resulting lower overall reinsurance market volume, particularly in Japan, the renewal results are very satisfactory.”
The Company’s renewal of its MDU book of business grew by 3 percent to US$168.1 million.
The bulletin indicated that, following the successful renewals, Converium confirmed its forecast of writing gross premiums for the 2006 calendar year of between $1.8 and $1.9 billion, including Life & Health business. It also reaffirmed its “commitment to adhere to strict profitability standards.”
CEO Inga Beale commented: “I am very pleased with the April 1 renewals. The strong results reflect the loyalty of many of our Asian clients, based on Converium’s long-standing relationships and highly regarded technical expertise. We will continue to develop our presence in Asia, which is one of our key markets for future growth.
“The long-term business of MDU remains an important part of our book of business. We are proud of our fruitful relationship with the MDU and look forward to continue providing high-quality services to our strategic alliance partner,” she continued.
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