Lloyd’s insurer Antares and its sister firm Qatar Re are mulling both the integration of their back office capabilities and combining their reinsurance buying in the next chapter of a 2018 efficiency drive at the group.
Speaking to Re-Insurance at the Monte Carlo Rendez-Vous, Antares’ head of ceded reinsurance Richard Anson said the Lloyd’s insurer was working with colleagues at Bermudian bedfellow Qatar Re, as well as parent company QIC, to explore jointly purchasing reinsurance cover possibly in time for 2019 renewals.
“We’ve kicked off a project with Qatar Re and are looking at the potential to join up reinsurance covers,” Anson said, adding that the firms will be speaking to their reinsurers over the next few days.
Anson said the move would make it easier to manage retention levels at group level. Also speaking to this publication, Antares’ head of reinsurance Alex Craggs said both carriers felt it was “entirely appropriate” to consider buying combined reinsurance across the portfolios.
“It makes no sense for Antares and Qatar Re to buy cover individually,” Craggs said.
“There’s going to be harmonisation,” he added. This “harmonisation” between Antares and Qatar Re, Craggs said, would also extend to administration functions across both carriers.
“We’ll certainly be looking at the back office,” Cragg said.
“We’ll be looking at the areas where we can make efficiencies,” he added.
However, both Cragg and Anson stressed that they did not expect these changes to impact frontline underwriting or involve any restrictions on the products either carriers currently offer.
Anson said he will use the next few days as an opportunity to inform Antares’ reinsurers of the potential changes afoot.
“At this point I don’t know exactly what this will all mean for the programme,” Anson said. “But I need to warn them that change is coming,” he concluded.
QIC has already undertaken a number of what it has deemed “streamlining” activities so far in 2018, with these mainly focused at Qatar Re which was hit by significant losses in 2017 from cats, man-made losses and UK motor.
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