Hull rates have been hardening following a difficult year
There are fresh fears of marine market overcapacity. Two former Catlin executives are reportedly putting together a new multi-billion pound reinsurance and speciality lines facility on the Lloyd’s of London market, according to shipping journal TradeWinds.
Stephen Catlin and Paul Brand are seeking to raise $3bn (£2.35bn) for their product, which some in the industry fear will add capacity at a time when hull rates had been hardening following a challenging year.
According to TradeWinds the move is causing alarm because the pair could enter the market with a ‘clean sheet’, meaning that as they don’t have claims liabilities they hold a competitive advantage over other underwriters.
“I’m not sure if it will have a positive or negative effect. I guess a lot will depend on what it is designed to do — disrupt or complement the market,” a Lloyd’s underwriter told TradeWinds.