RAA: National Indemnity led spike in 2014 premiums

Quarterly results from the Reinsurance Association of America (RAA) revealed a significant spike in premiums written, thanks largely to a sharp rise in underwriting volume at National Indemnity.

Premiums written for the first quarter reached $19.1 billion for the RAA membership, markedly up from the $6.9 billion written during the same period in 2013.

National Indemnity accounted for $14 billion of that total, a considerable increase from the $1.7 billion of premium it wrote in 2013.

According to the survey, National Indemnity’s marked increase in premium volume is thanks to quota share agreements with GEICO affiliated companies, a development which became effective from January 1, 2014.

The upward movement in National Indemnity’s net premiums written represents a 706.1 percent swing from the previous quarter.

Others who achieved notable growth during the quarter were General Re with a 21.5 percent increase in net premiums written and Bermuda’s Everest Re, which increased writings by 13.1 percent.

Notable declines in premiums written during the quarter were evident at QBE – down 20.4 percent – and at SCOR US – down 13.5 percent.

In terms of combined ratio, National Indemnity posted a 97.7 percent combined ratio, with the outliers within the RAA group being QBE with a combined ratio of 113.9 percent for the quarter and Sirius America Insurance at 73.5 percent.