XL Catlin eyes Africa growth
XL Catlin is eyeing growth and opportunities in emerging markets and Africa in particular as it leverages its new global structure announced last week, David Watson, chief executive, international, reinsurance, told Monte Carlo Today.
The company unveiled a new management team with oversight of Europe, the Middle East and Africa (EMEA), Asia-Pacific and Latin America reinsurance business last week. Watson, previously chief executive, EMEA and international casualty, has expanded his regional responsibility by adding Asia-Pacific and Latin America to his leadership remit.
He said the new structure will allow the reinsurance unit to offer clients a more seamless service, combining its regional expertise with its product expertise. In particular, it will look to offer insurers in Europe with an international reach a single solution and point of contact.
Watson said he sees emerging markets as offering the greatest growth potential. He added that this was also the best way of helping to plug the growing protection gap, which offers such an opportunity for the industry.
This potential will be further enhanced once XL’s acquisition by AXA is completed.
“Our footprint and offering once the AXA deal closes will open up even more opportunities. They will bring a lot to the table; it is very exciting,” he said.
Within his remit, Watson sees Africa as having great potential—partly because he believes XL Catlin is underweight in the region and partly because the continent’s economy is growing. The company made its intentions in the region clear in 2016 when Alex St James was appointed head of Africa reinsurance operations.
“There is a lot of infrastructure work going on the region, and a lot of investment, and that can mean opportunities for reinsurers,” he said.
In terms of rates, Watson admitted that he was disappointed that rate increases were not greater following the losses of last year but said it was difficult to see much changing in the absence of further heavy losses.
“If Hurricane Florence hits Carolina, who knows?” he concluded.
