Antares seeks reinsurers for new business lines
Specialist Lloyd’s re/insurer Antares is seeking reinsurance partners to work with on several new classes of business including casualty and accident and health (A&H).
Richard Anson, head of ceded reinsurance at the re/insurer, plans to seek out potential reinsurers at the Monte Carlo Rendez-Vous.
Antares launched its A&H division on September 9, less than three months after launching its casualty treaty division in June.
“It’s very hard to grow in this market environment and rates are very thin across the board,” said Anson. “But rates were also thin last year and we may be reaching a point in some classes where there’s nowhere for them to go.”
Anson added that given the tough market conditions, growth should be focused on organic growth in new classes. He added that there may be new opportunities in growth for existing classes but “you’d have to look pretty hard to find them”.
“We have good underwriters that are able to do that but even if you find a new opportunity, you might just be making up for business you’ve lost in other areas,” he said.
Antares currently cedes about 10 percent of its gross premium, although previously it ceded more. Anson claimed that this was not as result of rating decreases, but rather because Antares’ structure had been refined.
He said: “Our structure is pretty streamlined and we’ve increased retentions over the last few years. There are two drivers: first, we are trying to hold on to the inherent diversification across the wide range of classes we underwrite and second, our new owners have a bigger risk appetite than our previous owners.”
Qatar Insurance Company (QIC) completed its acquisition of the company in June 2014. On potential mergers and acquisitions (M&A), he said that he expected more activity in the current environment.
“One and one very rarely makes two and that’s a good thing because we need capacity to be coming out of the market now, and that’s one way for capacity to reduce slightly.” Anson also noted that Antares was open to acquisitions and had looked at a few opportunities but so far, none had reached fruition. “It’s clear that QIC is willing to put money behind us to make the right acquisition,” he said.
