Profile: Allied World Assurance Company Holdings Ltd (AWH)
10 Jul 2014
Allied World Assurance Company Holdings, AG (Allied World Switzerland), is a specialty insurance and reinsurance company that underwrites a diversified portfolio of property and casualty lines of business through offices located in Bermuda, Hong Kong, Ireland, Singapore, Switzerland, the United Kingdom and the United States. The Company has three business segments: U.S. insurance, international insurance and reinsurance. For the year ended December 31, 2011, its U.S. insurance, international insurance and reinsurance segments accounted for 43.2%, 27.4% and 29.4%, respectively, of its total gross premiums written of $1,939.5 million.
U.S. Insurance Segment
The U.S. insurance segment includes its direct insurance operations in the United States. Within this segment it provides a diverse range of specialty liability products, with a particular emphasis on coverages for healthcare and professional liability risks. Additionally, it offers a selection of direct general casualty insurance and general property insurance products. Its casualty operations in the United States focus on insurance products providing coverage for specialty type risks, such as professional liability, environmental liability, product liability, inland marine liability and healthcare liability risks, and it offers commercial general liability products as well. Professional liability products include policies covering directors and officers, employment practices and fiduciary liability insurance. It also offers a diverse mix of errors and omissions liability coverages for a variety of service providers, including law firms, technology companies, insurance companies, insurance agents and brokers, and municipalities.
The Company also provides both primary and excess liability and other casualty coverages to the healthcare industry, including hospitals and hospital systems, managed care organizations and medical facilities, such as home care providers, specialized surgery and rehabilitation centers, and outpatient clinics. Its healthcare operations in the United States target small- and middle-market accounts. During the year ended December 31, 2011, its healthcare business accounted for 24%, of its total gross premiums written in the U.S. insurance segment. Its United States property insurance operations provide direct coverage of physical property and business interruption coverage for commercial property risks. It offers general property products from its underwriting platforms in the United States, and cover risks for retail chains, real estate, manufacturers, hotels and casinos, and municipalities. During 2011, its general property business accounted for 9.4%, of its total gross premiums written in the U.S. insurance segment. The Company has a total of six insurance programs in the United States, offering a variety of products, including professional liability, excess casualty and primary general liability. During 2011, its program business accounted for 10.4%, of its total gross premiums written in the U.S. insurance segment. Within its U.S. insurance segment, insurance policies are placed through a network of over 200 insurance intermediaries, including excess and surplus lines wholesalers and regional and national retail brokerage firms. A subset of these intermediaries also access certain of its United States casualty products through its i-bind platform that allows for accelerated quote and bind capabilities through the Internet.
International Insurance Segment
The international insurance segment includes its direct insurance operations outside of the United States. It includes our operations in Bermuda, Europe and Asia. Its Bermuda and European operations have entered into a relationship with Latin American Underwriters to offer trade credit and political risk coverages primarily for clients doing business in Latin America and the Caribbean. Its insurance operations in Europe, with offices in Dublin, London and Switzerland, have focused on mid-sized to European and multi-national companies domiciled outside of North America, and it is also diversifying into insurance products for smaller commercial clients. In addition, Syndicate 2232 offers select product lines, including international property, general casualty, healthcare and professional liability, targeted at key territories, such as countries in Latin America and the Asia Pacific region. The international insurance segment also encompasses its offices in Asia, including its Hong Kong and Singapore offices and Lloyd’s Asia, which underwrite a variety of primary and excess professional liability lines and general casualty and healthcare insurance products.
The Company’s international insurance segment utilizes gross limit capacity. Its focus with respect to general casualty products is on complex risks in a variety of industries, including manufacturing, energy, chemicals, transportation, real estate, consumer products, medical and healthcare services and construction. During 2011, its general casualty business accounted for 24%, of its total gross premiums written in the international insurance segment. It provides professional liability products such as directors and officers, employment practices, fiduciary and errors and omissions liability insurance. The Company offers a diverse mix of coverages for a number of industries including law firms, technology companies, financial institutions, insurance companies and brokers, manufacturing and energy, and engineering and construction firms. During 2011, its professional liability business accounted for 31%, of its total gross premiums written in the international insurance segment.
The Company’s healthcare underwriters provide risk transfer products to numerous healthcare institutions, such as hospitals, managed care organizations and healthcare systems. During 2011, its healthcare business accounted for 12.8%, of its total gross premiums written in the international insurance segment. It offers general property products from its underwriting platforms in Bermuda and Europe. Its international property insurance operations provide direct coverage of physical property and business interruption coverage for commercial property risks. It writes solely commercial coverages and focus on the insurance of the primary risk layer. The types of commercial property risks it covers include retail chains, real estate, manufacturers, hotels and casinos. During 2011, its general property business (including energy lines) accounted for 30.1%, of its total gross premiums written in the international insurance segment.
The Company’s reinsurance segment includes the reinsurance of property, general casualty, professional liability, specialty lines and property catastrophe coverages written by other insurance companies. In order to diversify its portfolio and complement its direct insurance business, it targets the overall contribution from reinsurance to be approximately 30% of its total annual gross premiums written. It writes reinsurance on both a treaty and a facultative basis, targeting several niche markets, including professional liability lines, specialty casualty, property for United States regional insurers, accident and health, marine, aerospace and crop risks.
Property, general casualty, professional liability and international treaty reinsurance is the principal source of revenue for this segment. The insurers it reinsures range from single state to nationwide insurers located in the United States, as well as specialty carriers or the specialty divisions of standard lines carriers. For its international treaty unit, its clients include multi-national insurers, single territory insurers, niche carriers and Lloyd’s syndicates. Its North American property reinsurance treaties protect insurers who write residential, commercial and industrial accounts where the exposure to loss is chiefly North American.
The Company’s North American general casualty business writes both treaty and facultative business. Its North American generally casualty treaties cover working layer, intermediate layer and catastrophe exposures. It sells both quota share and excess-of-loss reinsurance. It principally underwrite general liability, auto liability and commercial excess and umbrella liability for both admitted and non-admitted companies. Its general casualty facultative business is principally comprised of lower-attachment, individual-risk reinsurance covering automobile liability, general liability and workers compensation risks for many of the United States property-casualty and surplus lines insurers. During 2011, its North American general casualty business accounted for 25%, of its total gross premiums written in the reinsurance segment.
The Company’s North American professional liability treaties cover several products, primarily directors’ and officers’ liability, but also attorneys’ malpractice, medical malpractice, miscellaneous professional classes and transactional risk liability. The complex exposures undertaken by this unit demand highly technical underwriting and pricing modeling analysis. During 2011, its professional liability treaty business accounted for 10%, of its total gross premiums written in the reinsurance segment. Its international treaty unit’s portfolio protects United Kingdom insurers, including Lloyd’s of London syndicates and Continental European companies. During 2011, the international treaty unit accounted for 26.9%, of its total gross premiums written in the reinsurance segment. For its specialty reinsurance business, it underwrites accident and health business, emphasizing catastrophe personal accident programs and workers compensation catastrophe business. Its marine and specialty division offers reinsurance for marine, aerospace and crop risks on a global basis. During 2011, its specialty reinsurance business accounted for 11.3%, of its total gross premiums written in the reinsurance segment.
The Company competes with ACE Limited, Arch Capital Group Ltd., Axis Capital Holdings Limited, Chartis Inc., The Chubb Corporation (Chubb), Endurance Specialty Holdings Ltd., Factory Mutual Insurance Company, HCC Insurance Holdings, Inc., Ironshore Inc., Liberty Mutual Insurance Company, Lloyd’s, Markel Insurance Company, Munich Re Group, The Navigators Group, Inc., OneBeacon Insurance Group, Ltd, Swiss Reinsurance Company, W.R. Berkeley Corporation, XL Capital Ltd, Zurich Financial Services, Alterra Capital Holdings, Ltd, Berkshire Hathaway, Inc., Everest Re Group, Ltd., Lloyd’s, Montpelier Re Holdings Ltd., PartnerRe Ltd., Platinum Underwriters Holdings, Ltd., RenaissanceRe Holdings Ltd., Swiss Reinsurance Company, Transatlantic Holdings, Inc. and XL Capital Ltd.
Allied World Assurance Company Holdings Ltd
BAAR ZUG 6340