Strategic Antares seeks composite coverage

Following changes to its reinsurance buying strategy at the end of 2013, Antares Underwriting is now focused on composite coverage in order to amalgamate numerous risks, Richard Anson, head of ceded reinsurance at Antares, told Monte Carlo Today.

“A number of reinsurers are offering composite reinsurance where they’re bringing together property, marine, terrorism and possibly some smaller classes such as aviation. I’m very interested in that as a product as I think it’s very capital-efficient for us,” explained Anson.

Until now, he said, each class of business has been treated separately.

Some of these lines, in particular marine, need to be approached with caution.

“Sectors such as marine certainly have some long tail exposures and obviously collateralised reinsurers want to release the collateral early,” he said. “We don’t want a situation where we buy coverage on a collateralised basis, and release that collateral but a loss gets bigger a couple of years later.”

Prior to Antares being acquired by Qatar Insurance Company (QIC), the company carried out an audit of its reinsurance spend and adjusted as necessary. Anson said the findings are still relevant.

“I’m a big believer that we should retain as much of the diversified programmes as we can, so we have increased retention in 2014 in some of the smaller classes,” he said. “Going forward, our plan is for a pretty flat renewal in terms of the structure, which is partly driven by the takeover by QIC.

“We’re still working out what this means in terms of risk appetite and group exposures, especially in relation to Antares and Qatar Re, and what to do with that.”