Insurer stresses commitment to London
Lloyd’s insurer Canopius has launched a Bermuda operation.
It will comprise Canopius Underwriting Bermuda Limited, which, subject to Lloyd’s approval, will underwrite business on behalf of Syndicate 4444, and Canopius Bermuda Limited, a class 3 reinsurance company with initial capital of $250 million.
Susan Patschak will be the chief executive officer of both entities, subject to Bermuda immigration approval.
Canopius Underwriting Bermuda’s business lines will include excess casualty, medical malpractice, property catastrophe, workers’ compensation catastrophe, and terrorism.
The agency provides further diversification of Syndicate 4444’s portfolio by accessing new distribution channels and additional classes of business, Canopius said.
Canopius Bermuda will have initial capital of $250 million. This will be provided from existing group resources and new capital of $100 million comprising equity (from existing shareholders) and debt.
The increased capital will strengthen the Group’s balance sheet, increase net assets and enable development of the Bermudian platform.
Canopius Bermuda will provide capital support to the group’s underwriting operations at Lloyd’s.
Michael Watson, chairman of Canopius said: “The prospect of launching our new platform in Bermuda is very exciting. It gives us access to new markets and will further diversify the lines of business that we underwrite. Canopius Bermuda will build its own franchise, at a gradual pace, reflecting current market conditions.
“Strict underwriting discipline is paramount at Canopius. Jim Giordano, Group Chief Underwriting Officer, will ensure that our underwriting philosophy in Bermuda mirrors the extremely high standards practiced by our team at Syndicate 4444. I am delighted that we have secured the services of Susan Patschak, who will lead our Bermuda platform, and who subscribes to our views of cautious expansion at this stage in the cycle.”
He added: “Canopius remains committed to London and the Lloyd’s market. By establishing Canopius Bermuda as a coverholder of Syndicate 4444, our new clients will benefit from the excellent financial strength afforded by Lloyd’s. We look forward with confidence to this next exciting phase in Canopius’ development.”