Will convergence capital inevitably change the structures used to underwrite certain risks? What are the implications of this?
In the context of the formation of investment fund-backed reinsurance vehicles, while much of this capital has been focused on the catastrophe markets, there are increasingly entrants focused on other segments of the market.
It is important to recognise that nontraditional sponsors have played important roles in expanding reinsurance capital for decades. That has been and will continue to be the nature of the reinsurance sector.
"OUR CLIENTS HAVE BEEN ACTIVELY FOCUSED ON ENSURING THAT THEIR PRICING REFECTS A REALISTIC UNDERSTANDING OF EXPOSURES AND LOSS COST TRENDS."
Regardless of the competitive environment, the formula for success in the market is to deliver innovative solutions, provide strong financial security, and offer a high level of service to customers. With more than 30 years of serving our clients in the reinsurance sector we believe that the team at Maiden Re is well positioned to deliver on these objectives.
How does the performance of the US market compare with other parts of the world at the moment?
While that is a pretty broad topic, we believe that insurers in the US market today are maintaining a strong focus on profitability. Our clients have been actively focused on ensuring that their pricing reflects a realistic understanding of exposures and loss cost trends.
While it is not necessarily the case across geographies and lines of business, it is fair to say that there has been continues to be a general trend of rate firming in the US primary market. While there are always exceptions, we think that the broader global trend outside of the US has been much more competitive.
As a reinsurer, supporting discilined underwriters is a key objective regardless of the market.
What process is in place for Maiden to remain innovative?
"THERE HAS BEEN AND CONTINUES TO BE A GENERAL TREND OF RATES FIRMING IN THE US PRIMARY MARKET."
Simply stated, the best driver of innovation at Maiden comes from responding to the needs of our customers. Whether it is focusing on maximising our financial commitments to clients with our Dedicated Financial Trust, delivering our innovative electronic facultative platform, “AMP”, or accelerating claims payments through our ‘rapid payment management process’, in each case, we have been focused on solving client issues and delivering value. We continue to actively develop new ways to innovate and expand our value to our clients.
What has been the company’s biggest achievement over the last 12 months?
It is hard to focus on a specific achievement but we are always most proud of expanding our active client relationships. In the US, we increased our active client count significantly and expanded a number of existing relationships. Beyond that, we have just completed a capital raise which further strengthens our balance sheet by more than $150 million.
What are you hoping to achieve in the next 12 months?
We are focused on expanding our active client relationships and delivering enhanced value to our customers with new service offerings.
Art Raschbaum is the chief executive officer of Maiden Holdings. He can be contacted at: firstname.lastname@example.org
Maiden Holdings, convergence capital