Large Property Values – USD 250m to 10bn
Questions for you:-
Is your account between USD 250m in values and USD10bn and has a point of contention?
Do you have an account that has been dislocated or non-renewed from the local admitted market, maybe from a lengthy historical relationship ?
Do you have a sizeable account that has a large percentage proportion of natural catastrophe exposure which doesn’t fit the admitted market.
Do you have an account that is currently placed in the E&S market with a basic coverage form, with little or no sub limits, and you require better terms and conditions along with pricing?
Primary Property business in the London Market.
Did you know that your firm has direct access to us here in London ?
We have been placing Primary limits in London on all occupancies since 1986 and have obtained a lot of knowledge and experience. In the past when we worked for alphabet houses, we placed household Fortune 500 names, now we specialise in placing accounts in the value range of 250m to 10bn and provide them with the same exact service !
If we work on an account we like to give it the “Rolls Royce” treatment.
We like to tell your clients story in the London market on your behalf and would really like you to think of us being in your team, i.e. we represent you in London.
What can we do in London?
We can offer sizeable primary participation which looks similar in terms of coverage to the expiring placement. Terms and conditions will vary but we try to duplicate sub limits and coverage.
Policy is typically an All risks form which includes Flood and Earthquake and 32 sub limits.
Capacity depends on the submission details, limits available are between USD/ CAD10m to 100m. Primary 25m currently appears to be the optimised limit for underwriters at present and depends on class from which we build upon.
One policy will be issued on behalf of all London carriers with one dedicated loss adjuster named, providing a great start to a placement creating contract certainty for the client.
This placing structure, large primary in London placed 100%, will allow you to keep the domestic E&S Capacity in play and then build a tower of limits above, using the best of both markets.
How do we do it ?
We work up every single submission that we think may fit into our “in house” review sheet, which provides nat cat exposure from Fema, we then “rate up” which generates a structure and pricing based on our market knowledge.
We then feed this information back to our clients quickly. We provide insight quickly to where we think a shared and layered tower might cost in terms of premium. We also share the Fema exposure information so clients can review and decide if Policy limits are adequate or whether they need to consider buying more.
What is our speciality ?
We like thinking outside of the box and providing new solutions to your clients.
We really like to listen to what they want to purchase, and tailor a unique placement to their requirements, which London allows us to do.
We can sometimes negotiate tailored wordings to fit with the clients business.
We also enjoy combining schedules together into one programme for a client, to gain optimization efficiency.
This is one of our key strengths which is assisted by our internal pricing workbook. Designing programmes with Aggregates is another key USP which is another key tool to our clients who want to take additional risk in their programme.
Quick Case Studies
TIV2.5bn Apartment schedule with a large SCS foot print, we combined 15 policies into a Primary USD100m placed in London with a 5m aggregate
TIV 500m Plastic extruder with 2 large losses in succession, Primary USD25m placed in London, losses and a large fire PML
TIV 800m Food manufacturer, Primary 50m placed in London. Large fire PML
TIV 2.5bn Food Manufacturer, Primary 50m placed in London, competed against the Domestic market on terms and conditions
TIV 1.5bn Warehouses, amalgamated a wind buy back programme for 20 policies that were placed with various carriers, to provide economic benefit and ease of servicing.
TIV 400m Excess stock only, provided 300m xs 100m on excess stock for a defence company
Main Industries:
Food
Agri
Manufacturing
Warehousing
Real estate
Hospitality
Warehousing / logistics
Schools, Municipalities, Government business
So, When to engage with us:-
1) Current / Previous market
Admitted market last year which is non-renewing.
Consolidation of lots of policies
Unsatisfactory E&S Placement that needs to be restructured into one policy to make it much tidier and better for the client.
2) Reason for rejection / non-renewal / break up: -
Class of business
Loss record, large loss, or series of losses
Risk standard doesn’t quite fit the admitted carrier’s appetite or underwriting anymore, e.g., one of the locations non-sprinklered.
Large individual Fire PML /$ amount subject on a particular location especially if there is a heat process or subject to combustion. Manufacturing, food processors etc.
Natural catastrophe is too much for the local market to absorb.
3) Size typically:
TIV’s greater than USD/CAD 250m, the sweet spot seems to be TIV’s greater than 400m.
Focus is USD/CAD 500m to 10bn+
Sales greater than USD/CAD 150m
Employees greater than 100
4) Deductibles
Min USD/CAD 100,000 AOP
Aggregate deductibles – normally uncollateralized, we use a dedicated loss adjuster to manage and keep score.
5) Min Premium:
USD / CAD 500,000
Risk Management / Surveys
Typically, London Underwriters will provide a small percentage of the premium towards inspecting some of the larger locations on a schedule. We use Paragon Risk Engineering for this function, we instruct them to carry out the work and then collect the fees from Underwriters.
The Paragon reports are very well put together and can be very constructive for the client to consider in their next wave of capital expenditure to make meaningful risk improvements and control risks.
Claims
Claims are important to us, after all that’s why our clients buy coverage in the first place to hedge their balance sheet.
Every Primary account that we place will have a named loss adjuster on the second page of the policy with an email and a person you/or your clients can call if they suffer a loss, so we can get the process started as soon as possible.
The claim is just as important to us as putting the programme together in the first place!
Lastly, some notable accounts we have been involved with and placed during our years in the London Market
Agri / Transportation Aquinac Academy Bus Lines Ruan Penske Toyota USA Bridges – New Orleans, San Francisco Allied Movers | Hospitality Marriott Intercontinental hotels Mc Donalds, franchise programme Nederlander Theatres Ballys Houston Stadiums Flushing meadows Tennis stadium Quebec Hotel Association
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Real Estate Rudin management Schubert Management Lane Property Cushman and Wakefield Time Warner NYC Property Aruba Airport Authority
| Food / Manufacturing Seneca Foods Colormasters Ford Georgia Pacific |
Retail Stores The Limited / Victoria Secrets Gap Hot Topics The Limited too
| Healthcare / Church Kaiser Permanente Catholic Religious Self Insured retention Programe |
Contact
David Price
Tel: +44 7979051582
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