Marco Sordoni, the chief executive of UnipolRe, the Dublin-based reinsurer backed by Italian insurer UnipolSai Assicurazioni, gives Monte Carlo Today the lowdown on what the company has achieved since its launch 12 months ago, and its plans now.
It’s 12 months since you launched UnipolRe, what are your main achievements?
We are delighted that the strong interest shown in UnipolRe by cedants and brokers alike across all classes of business has aligned itself to our business plan.
UnipolRe started late in the year for the 2016 renewal season but we marketed the company as being a key differentiator to other recent start-ups and the market responded positively with a large number of treaty offerings (around 200).
UnipolRe’s focus upon servicing the client for all of its reinsurance needs through our multiclass life and non-life proportional and excess of loss global approach has been well received by clients. Our specific expertise in motor third-party liability (MTPL) or multiline excess of loss is a key focus of our “deliverable” to the client.
In addition, UnipolRe is leveraging the expertise and knowhow of one of Europe’s largest insurance/financial institutions, Unipol Group. This has been recognised by AM Best which have recently reaffirmed UnipolRe’s Finance Strength Rating of A- with a Stable Outlook.
This solid multiservicing approach is our major differentiator and has led to an exceptional start.
What has been the response of cedants? How much business have you written?
There has been a great interest from cedants, ranging from small to the very large. We feel the traditional long-term approach of our offering, which our target clients really appreciate, sets us apart.
So far, we have underwritten €53 million ($59 million) of premiums for 2016, with a strong presence in France, the Benelux countries and the UK.
What have been the main challenges and landmarks in year one?
Aside from the usual logistical issues encountered by all start-ups, UnipolRe is developing specific modelling & underwriting competencies in order to provide strong quoting ability to our cedants.
The main challenge is the current soft market conditions faced by all reinsurers in the European P&C market.
We have grown. Staff numbers have expanded rapidly in the last year with growth in the actuarial, modelling, claims and underwriting areas. Attracting key staff in a growing and dynamic team is one of our key successes.
Your parent has said it is releasing more capital to Unipol Re—why is this and how will it be used?
In recognition of the early achievements of UnipolRe and the potential for further growth combined with good returns, UnipolSai Assicurazioni has committed to injecting an additional €300 million ($334.8 million) into UnipolRe over a three-year period.
This investment will assist UnipolRe in growing our ambitions in our servicing capabilities to ceding companies as well as leveraging the parent company’s leading technical know-how in areas such as MTPL telematics combining with the support of Alfa Evolution & UnipolSai Assicurazioni, proposing a 360-degree offering.
What are your ambitions for the next 12 months?
We will pursue the growth in traditional lines of business within the European market. UnipolRe will continue to raise its ambitions together with the parent company’s continued investment in our growth. UnipolRe will develop the technical structure and increase our capabilities for servicing in conjunction with our underwriters.
In addition to building upon a strong technical base in order to operate profitably, given our parent’s unparalleled expertise in the telematics space, UnipolRe is specifically targeting ceding companies wishing to introduce telematic products into their portfolios.
By the end of 2018 UnipolRe would like to be viewed as a confirmed player in Europe for all types of traditional risks.
Our approach is to bring added value to our clients and given our specific in-house skillsets at present, we are concentrating on the traditional lines on a multiclass proportional and excess of loss basis throughout the EU.
What will be your key messages in Monte Carlo?
We want to do business with clients where we can consolidate a global relationship bringing unique insight and product range, strong financial support and claims-paying ability combined with a long-term business approach.
We will also be presenting the UnipolRe team to market and utilising the unique platform offered by this forum to meet with existing clients as well introducing our offering to new clients.
A successful first year
- Well received by cedants across Europe
- €300 million of new capital
- Focus on long-term relationships
- Cutting-edge technical knowhow
- World-class expertise in telematics
Marco Sordoni is chief executive officer of UnipolRe. He can be contacted at: firstname.lastname@example.org
Marco Sordoni, UnipolRe, Europe, Monte Carlo Rendez-Vous 2016, Reinsurance, UnipolSAi