Boosted reinsurance will prepare insurer for Solvency II, chief exec says

Gibraltar-based insurer Advantage may buy more reinsurance to support its continuing growth and to prepare for Solvency II, said chief executive Keith Charlton.

Advantage, which was part of Insurance Australia Group before a management buy-out last year, has taken out a quota share reinsurance contract with Lloyd’s (re)insurers Faraday and Novae, which covers 40% of its business.

Charlton said: “At this point, Advantage is privately owned by a group of individuals and we don’t have ready access to lots of capital. We want to make sure we continue our growth.”

Advantage’s gross written premium increased to £190m in the year to 30 June 2010 from £134.3m in the previous financial year. However, profit fell to £2.5m from £6.2m in the 2008-2009 year.