21 October 2015 News

Canopius-Sompo unit gives firm greater relevance

The formation of an integrated global reinsurance unit between Canopius and Sompo makes the firm more relevant to its clients, according to Eric Gutiérrez, chief executive officer, European reinsurance, Sompo Canopius Re.

Gutierrez claimed that the unit, which will begin underwriting on January 1, 2016, leaves the company “very well positioned” in the current mergers and acquisitions (M&A) market.

“The financial strength of the Sompo Group gives us relevance, as well as increased capacity and leadership abilities. We will also have a single management team, a united vision of strategy and a single underwriting philosophy on a global level,” he said.

The new unit will be headed by Markus Eugster, who will serve as chief executive of Sompo Japan Canopius Reinsurance. He joins the firm from XL Catlin where he was chief market and operating officer EMEA as well as chief underwriting officer for Catlin Re Switzerland.

Gutiérrez also talked about the company recently moving its headquarters from Bermuda to Zurich. He said the move will help the firm be seen as a big player in Europe, but he added that the move will be far more neutral to his colleagues in Asia and the US.

On rates, the executive said there is slightly less pressure compared with what had been predicted at the Monte Carlo Rendez-Vous.

“I’m not saying they won’t go down, but everyone was expecting to achieve a double-digit discount easily. I think they are going to stay just below or around that threshold,” he said.

He added that most executives in the industry, especially in Europe, seem to be fairly positive about the imminent introduction of Solvency II.

“We’ve been talking about Solvency II for the last few years. Now we’re getting to the point where it’s really happening. So we see opportunities such as clients buying solutions to protect against volatility of results, multi-line products and additional layers,” said Gutiérrez.

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