Specialist insurance group Hiscox has entered into a quota share arrangement with WL Ross & Co's newly created reinsurance company Panther Re Bermuda to take advantage of strong underwriting opportunities, particularly in US catastrophe risks.
The agreement will allow Syndicate 33, which is managed and 72.5% owned by Hiscox, to grow its book of property catastrophe reinsurance business during 2007 and 2008.
Under the terms of the deal, Panther Re will assume a 40% pro rata share of Syndicate 33’s property catastrophe reinsurance business for the 2007 underwriting year and a similar pro rata share to be agreed for the 2008 underwriting year. Syndicate 33 will be entitled to a ceding commission and a profit commission based on the underwriting results of Panther Re.
Creating access to more capital will allow us to take advantage of what we perceive will be a favorable market for writing catastrophe reinsurance business in 2007 and 2008. Syndicate 33 will also benefit by increasing its market presence and having more control over pricing and terms and conditions, commented Bronek Masojada, CEO of Hiscox. This transaction further underlines our commitment to growing our business in London whilst simultaneously growing our retail business in the UK, Europe and the USA.