Charman set for London return

John Charman will return to London in March to underwrite primary insurance for Axis Specialty.

The former Ace International group president and chief executive will employ up to 50 staff in the new operation.

Charman was dismissed from Ace in March following "differences over personnel matters". Under the terms of his contract, he is restricted from working for a competing company for a year. He is now in Bermuda underwriting for Axis Speciality, Marsh & McLennan's new $1.64bn (£1.13bn) insurance and reinsurance operation.

Speaking exclusively to Insurance Times, Axis Specialty chief financial officer Andrew Cook said Charman would be setting up in the Company Market.

"When John's non-compete [contract] expires on 17 March he will come back to London," he said. "Three years down the line we expect to write $400m (£274m) on catastrophe reinsurance and $600 (£412m) to $700m (£480m) on specialist lines in London."

Cook said Charman would underwrite UK short-tail primary insurance, focusing on marine, hull, aviation and blood-stock risks.

"We want 40 to 50 people working in London when we are finally ramped up," he said. "We are in Tower 42 temporarily, but are looking for full-time space for April."

Cook said Axis Specialty would not operate in Lloyd's as, "I believe we can access all the business we want to access through the Company Market".

He added: "Lloyd's is going through difficulties. Do you want to attach yourself to it?"

Cook also confirmed Axis Specialty would not be changing its name to Atlas, despite its present name's "Nazi connotations".

"It has been accepted by brokers," he said. "The world spins on its axis."

Cook revealed Marsh had been in discussions earlier this year to create a new Bermudan operation, but the New York attacks had acted as a catalyst.

He said: "I do not think this is just a two- or three-year operation. In five to ten years we will be there but in different forms."

He added that Axis Specialty has now bound business for the 1 January renewal season and is finalising contract terms.