|
Link to Lloyd's newsletter
October 2008
In this issue
Lloyd’s reports 2008 interim results
New Lloyd’s America COO Peter Seremetis
Junci Wu joins Navigators Underwriting Division at Lloyd’s Reinsurance (China) Limited
Lloyd’s Illinois mans Hurricane Ike helpline
Insurance Associates update
Lloyd’s Illinois compliance
|
 |
 |
|
Lloyd’s reports 2008 interim results
View the complete interim results | View Lloyd’s ratings
Lloyd’s, the world’s leading specialist insurance market, has announced an interim profit before tax of £949 million ($1.89 billion) for the six month period ending 30 June 2008. The result reflects a softening in market conditions and a rise in attritional claims.
- Profit before tax of £949 million ($1.89 billion)
- Combined ratio of 89% continues to compare well with peers who recorded an estimated average of 99% for US property & casualty insurers; 98% for US reinsurers; 86% for Bermuda; and 96% for European insurers and reinsurers
- Investments returned £346 million ($689 million)
- Strongest ever central assets of £1,936 million ($3.85 billion)
A conservative investment mix has resulted in a positive return of approximately 1%, which outperformed many peers, but showed the impact of the extreme volatility in the capital markets, with both equity and bond holding adversely affected.
Lloyd’s Chairman Lord Levene said, “We have reported a strong performance in extremely challenging circumstances. The result reported for the first half comes as no surprise with profits heavily influenced by falling investment income and increased cost of claims, while the second half will remain subject to the incidences of natural catastrophes.”
Lloyd’s Chief Executive Richard Ward added, “The market remains in a good position to face the challenges ahead even though the external conditions in which we operate are about to test our structure and resolve.”
back to top
|
|
 |
|
| |
|
|
|
Lloyd’s North America announces new COO – Peter Seremitis
Peter Seremetis has been appointed Chief Operating Officer for Lloyd's North America. Peter comes to Lloyd’s with over 23 years of experience in the financial services and news media industries. He will be responsible for day to day operations and finance and will also ensure Lloyd’s has the strategic operational and technology platforms they need in North America.
Peter is a graduate of Boston University and is a CFA. He began his career at JP Morgan and Smith Barney as a senior quantitative analyst and has spent the last 15 years at Reuters where he held various positions including Global Head of Customer Migration, Global Head of next Generation Products, and Global Head of CIO. He has led operational teams in the US, Geneva, Singapore and London.
Peter reports to LoriAnn Lowery, President of Lloyd's North America. "We are thrilled that Peter will be joining our team", LoriAnn said, "his unique background, effective communication and technological prowess, and decision making capabilities will be of significant benefit as we drive positive change and develop an environment focused on execution and growth. Peter has excellent analytic skills, is insightful and process oriented, and is a specialist in efficiency and problem solving."
Peter spent several days during the first week of October at Lloyd's Illinois, meeting the Chicago team and getting a crash course in Lloyd's licensed operation in Illinois.
back to top
|
|
 |
|
Junci Wu joins Navigators Underwriting Division at Lloyd’s Reinsurance (China) Limited
Insurance Associates member Junci Wu recently returned to Shanghai from Chicago to take the position of Director of Underwriting for Navigators Underwriting Division at Lloyd's Reinsurance Company (China) Limited. We caught up with her and asked her about her experience.
You were born and raised in Shanghai. Why did you move to the US?
I came to the US to pursue an advanced education over 10 years ago and obtained two Master’s degrees in Education – one from the University of Miami and the other from Peter Drucker Graduate School of Management at Claremont Graduate University in California.
How did you wind up working in insurance?
When I was in college in Shanghai, I focused on simultaneous interpretation (English/Chinese) in my part-time job. One of my clients was an insurance company who was exploring the market in China for reverse flow product liability. I quickly learned the basics about insurance. After graduation in the US, I continued in the industry and began my career with Swett and Crawford, a wholesale brokerage company in Los Angeles.
How long have you been with Navigators? What were you doing previously?
I joined Navigators in May of 2006 and worked as a primary casualty underwriter in the Chicago office. Later, I started training on professional lines and D&O. Prior to joining Navigators, I worked as an Account Manager at Swett & Crawford and as an underwriter at Interstate Insurance Company.
Tell us about the graduate work you did in the United States.
Peter Drucker (1909-2005) is widely regarded as the "father of modern management" and enjoyed a sterling reputation in China and other Asian countries. Being able to participate in one of his classes was an unforgettable experience. Peter helped me form the foundation of my knowledge. I might not remember all the accounting formulas or use all of the jargon that you see in Harvard Business Review, but the concepts I learned stay with me. They help me to see through challenges and anticipate solutions.
Why did you decide to pursue the RPLU and CPCU? What have these designations meant to you?
CPCU is known to have a strong curriculum for systematic training in the property casualty lines. Once I started cross training at Navigators, RPLU served as a structured introduction to the E&O and D&O world. A designation is just a designation; I care more about the learning experience. During the process, I also got to know quite a few interesting people and made some good friends.
What are you doing for Navigators in China? Underwriting? Primary insurance or reinsurance?
Navigators in China is utilizing the Lloyd’s platform under a reinsurance license. The Company delivers core underwriting expertise and focuses on underwriting profit. Navigators is prepared to expand their geographic footprint and diverse book of business through the expansion into China as well as other Asian markets.
Describe your clients in China. What types of policies have you been working on?
Most of our business will be generated by brokers, many of which are international brokers currently supporting us in our US and UK operations and now have expanded into China. One interesting observation is that the average age of the people in the industry in Shanghai is very young. Most of my clients are energetic and optimistic; they walk fast, work fast - just like the city of Shanghai. In the first couple of weeks since I started, I have worked on D&O accounts and have also seen energy, product liability, clinical trials, and E&O accounts.
How does it feel to be an integral part of Navigators' growth in China?
I am very excited to take up this challenge. As much as Navigators has grown, it maintains an entrepreneurial feel. They empower their underwriters to make complex decisions and always make their employees the highest priority. My background and desire to return to my home country fit perfectly with the Company’s strategy of entering China.
What are your thoughts on the recent expansion of North American insurance companies into the Chinese market?
China is a market too big to be ignored. The insurance market is relatively young but is experiencing tremendous growth every year. I hope my work in China, together with that of the thousands of others in the industry, will serve as catalyst to enhance the maturity of the Chinese insurance market.
What's it like moving back to Shanghai? What are you looking forward to?
Moving back to Shanghai was not as easy as I thought it would be. I became accustomed to the American way of living after spending more than ten years in the states. I am going through some reverse cultural shock at this moment. For example, you must be extremely careful when crossing the street, even when you have the green light. Shanghai is such a vibrant city with its own order - dynamic but with its own rhythm. One thing for sure, you won’t get bored in Shanghai. I am looking for good food, and catching up with my old friends
Is there anything you miss about the United States?
Inexpensive golf.
What do you do in your spare time?
Golf and hiking.
Thanks for taking the time to talk to us, Junci!
back to top
|
|
 |
|
Lloyd’s Illinois mans Hurricane Ike helpline
In the aftermath of Hurricane Ike, staff at Lloyd’s Illinois have been manning the Lloyd’s toll-free policyholder helpline. So far, they have answered more than 500 calls. Many retail agents were also victims of the hurricane - and so the job of the helpline staff has been to assist policyholders to identify the US broker on their Lloyd’s policy and then put them in touch with the broker.
85% of the time, the helpline staff have been able to provide policyholders with telephone, email and website information for their US broker so they can begin the claims process – even before authorities were allowing homeowners to return to many of the devastated areas.
The remaining calls are logged and transmitted each day to the Lloyd’s Policyholder & Market Assistance team in London, who research the information through their contacts in the market. They have identified the US broker in almost every instance – giving the total response a nearly 99% success rate.
Mark Smith of Lloyd’s Market Services remarked, "I have to say that the Lloyd’s Illinois team have performed magnificently. To reconcile 85% of callers has been a massive factor in the Lloyd's response to the hurricane. Well done guys!"
A special effort has been made to give assistance to Spanish-speaking policyholders on the Texas coast affected by the hurricane. Katie O'Connor, a Lloyd’s Illinois intern who is fluent in Spanish, has been available throughout to respond to these calls. Katie also developed a Spanish/English helpline "cheat sheet" for the rest of the staff.
The US policyholder helpline was established in 2005 to assist policyholders affected by Hurricanes Katrina, Wilma and Rita. More information about the helpline can be found on the Lloyd’s US website.
back to top
|
|
 |
|
Insurance Associates update
IA charges into autumn with a thrilling evening of insanity, grit and excitement at WhirlyBall in Chicago on Friday, October 17. Just one more in a string of great events IA has sponsored this year for its more than 100 members!
You can learn more about IA networking events and activities here.
A new group of dedicated young professionals have taken up their duties on the IA Board.
- Tim Pedersen, Jr, Travis-Pedersen and Associates - President
- Jennifer Davis, Crump Insurance Services - Vice President
- Elham Abdishi, Lloyd's Illinois - Treasurer
- Matt Britton, Lockton
- Megan Fitztgerald, Navigators Management Company
- John Hoey, Fireman's Fund Insurance Company
IA brings together young professionals from all insurance industry disciplines to establish peer networks for increased business opportunities and educational advancement. IA members may attend ALB seminars – offering important Illinois Division of Insurance continuing education credit – free of charge.
back to top
|
|
 |
|
Lloyd’s Illinois compliance
Lloyd's Illinois compliance experts Tom Oberwetter and Elham Abdishi talk about three of the top issues facing brokers who are doing Lloyd's business in Illinois.
Binding authority contracts
Be sure to email any changes to your binding authority contract to your Lloyd's Illinois compliance analyst as soon as possible. A complete staff list can be found here.
Electronic policy processing - no size limitations!
99.9% of Lloyd's business in Illinois is received, reviewed, countersigned, recorded and returned electronically. Because Lloyd's Illinois uses both FTP and Sharepoint technology to return countersigned policies and endorsements to brokers, there are no file or email size limitations! Contact Elham for more information.
Filed forms and endorsements
Policies and endorsements for licensed placements must use forms and wordings that have been filed with the Illinois Division of Insurance. Lloyd's Illinois files wordings on behalf of Lloyd's and maintains a library of forms already filed. Contact Tom if you have any questions about the forms you are using for Lloyd's licensed placements.
| Tom Oberwetter | email | 312 407 6204 |
| Elham Abdishi | email | 312 407 6205 |
|
|
 |
|
back to top
Views expressed in this newsletter do not necessarily reflect the opinion of Lloyd's. While every effort has been made to ensure that the information given is accurate, no responsibility (legal or otherwise) is accepted by Lloyd's for any errors or omissions.
Copyright © 2008 Association of Lloyd's Brokers |
|
|
|
|
|
