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 increase 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.

Bermuda players AXIS, Endurance, Everest, Odyssey Re, PartnerRe, Platinum Underwriters, Sirius America Insurance and XL Re are all included in the RAA survey, which can be found here.