22 October 2013

Disciplined in a steady marketplace

US reinsurance rates were reportedly disappointing for some reinsurers at the mid-year renewals. How was it for you?

The majority of the mid-year renewal commentary centres on the catastrophe market and the significant impact of expanded capacity. At Maiden, we have been pleased with our pricing activity this year in serving the non-catastrophe needs of our clients. We believe we are benefiting from the actions of many of our clients to maintain pricing discipline. We will see what the balance of the year will bring in terms of the pricing environment, but regardless of the competitive environment, we will remains focused on responsible and disciplined underwriting and pricing.

How beneficial are conferences such as PCI to Maiden Re?

The PCI Annual Meeting is extremely important. As an active member of the association, we believe that this conference provides members with a unique forum to engage on vital topics impacting the industry. It also provides us with a great opportunity to meet with many of our clients and prospects.

How important are long-term relationships to Maiden Re’s success?

Long-term relationships are critical for Maiden and a meaningful measure of our success. Importantly, they are a significant measure of our effectiveness in meeting the needs of our customers. Today the average client relationship tenure is approximately five years, with a number of relationships exceeding 15 years.

Can the US market expect similar regulatory demands as those faced by Europe under the impending Solvency II regime?

Risk-based capital is here to stay, whether it be Solvency II or other enhanced regulatory capital models. The US market will inevitably experience similar demands. Regardless of the regulatory mandate, we believe that risk-based capital models and tools will be important elements of effective insurance company capital and performance management.

How can Maiden Re’s Dedicated Financial Trust provide customers with an effective solution?

While we provide a strong balance sheet in support of our clients’ reinsurance recoverables, our Dedicated Financial Trust takes the extra step of establishing a unique segregated collateralised trust, funded with high quality bonds. We believe that our balance sheet and Dedicated Financial Trust together provide unparalleled security and peace of mind.

John Marshaleck is the chief financial officer of Maiden Holdings. He can be contacted at: jmarshaleck@maiden.bm

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