Allied World has realigned its two insurance business segments and reshuffled a number of executives, including the president of its Bermuda insurance operations.
Its two insurance business segments will be realigned from the current US insurance (US and Canada) and international insurance (all other regions) to North American insurance (all North America business, including US, Canada, Bermuda) and global markets insurance (all business outside of North America). The reinsurance segment will remain unchanged.
Frank D’Orazio, currently president, Bermuda and international insurance, will be appointed president, underwriting and global risk.
Louis Iglesias, as president, Allied World North America, will continue to oversee production and profitability for Canada and all US branch offices, and will assume responsibility for all insurance lines of business of the Bermuda operation.
Julian James, currently president, Allied World Assurance Company (Europe), will be appointed president, global markets. In this new role, he will continue to oversee all insurance lines of business for Allied World Europe and Syndicate 2232, as well as assume responsibility for Allied World’s operations in Asia Pacific and any other initiatives outside of North America.
The Swiss-based re/insurer took a nosedive in profits for third quarter of 2014 as its net profit fell to $30.9 million in the third quarter of 2014, compared with $122.8 million in the third quarter of 2013.
It experienced $29.8 million of catastrophe losses for the third quarter of 2014 related to Hurricane Odile ($18.5 million) in Mexico, which largely impacted the international insurance segment, and Windstorm Ela ($8 million) in Western Europe, and PCS 45 in the Midwestern US ($3.3 million), which both impacted the reinsurance segment.
The international insurance segment grew by 8.5 percent driven by more recently added lines of business, including marine cargo, as well as growth across existing lines.
Its combined ratio deteriorated to 91.7 percent in the third quarter of 2014, compared to 84.2 percent in the third quarter of 2013.
"We continue to see attractive opportunities for selective organic growth," said president and chief executive officer Scott Carmilani. "The strategic changes to our management team, and reorganisation of our segments, will better align us with our clients and position us well for continued opportunities. Given the footprint of our business outside of North America, and the announced RSA transaction, these regions represent the next phase of our development.”
Allied World, Bermuda, North America, Third Quarter 2014 Results, Frank D’Orazio