Bermudan-based Overseas Partners Ltd has stop underwriting new business. It has a Dublin subsidiary. The company has also put its Bermuda operations - OP Re, OPAL and OP Finite - into run-off. OPCat p ...
Bermudan-based Overseas Partners Ltd has stop underwriting new business. It has a Dublin subsidiary. The company has also put its Bermuda operations - OP Re, OPAL and OP Finite - into run-off. OPCat policies are being taken over by Renaissance Re.
The OPL board is currently in discussions about selling OPUS Re, its US reinsurance operation. It is also in discussions about moving the Bermuda finite and accident and health underwriting teams to other organisations. OPL has approximately $1.3bn (€1.49bn) in capital.
The decision to cease operations follows an independent review by two actuarial firms.
In a statement OPL comments: "Despite its management and reserve strengths, OPL's current capital structure will not allow it to continue to grow and compete effectively in today's reinsurance market.
"In addition, the board is mindful of the desire of many of OPL's 98,000 shareholders to have greater liquidity for their investment in OPL, for which there is no trading market and no present prospect of such a market.
"The capital requirements for OPL's business have constrained its ability to offer regular redemption of shares to its shareholders for several years."
OPL's decision appears to fly in the face of the current trend of increasing underwriting commitments in the hard market.
Until recently the management team, brought in only a couple of years ago, had appeared to be turning the company around.
In a statement, Robert Clanin, chairman of the board of OPL said: "OPL is committed to assuring appropriate transitions for existing clients."
