Allianz to grow alternative risk transfer business in Pacific region

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Allianz Global Corporate & Specialty (AGCS) has an ambition to expand its underwriting of business through its alternative risk transfer (ART) unit in the Pacific region, including Australia and New Zealand.

allianz-logoLast year, Allianz restructured its ART business line, which included its specialist insurance-linked securities (ILS) team becoming a stand-alone business line called Capital Solutions.

The rest of the Allianz ART business offers corporate solutions, reinsurance, and climate solutions, including weather risk transfer, parametric insurance, other services to help ceding companies and clients access the capital markets through insurance-linked securities (ILS) and third-party reinsurance capital related business, such as fronting.

The Capital Solutions business line facilitates the transformation of event-driven insurance risk into investment products for capital market investors and also operates across Asia Pacific for Allianz.

In announcing changes in the Pacific region today, including the appointment of James Stack as CEO of Allianz Global Corporate & Specialty (AGCS) Pacific, the insurer said its focus is shifting and one of the areas it will concentrate on is alternative risk transfer (ART).

The insurer is pulling back on some longer-tailed lines of business across Australia and New Zealand, but at the same time increasing its focus on shorter-tailed lines from ART, to energy, engineering, property and entertainment risks.

Mark Mitchell, Regional CEO AGCS Asia Pacific, commented, “As a global insurer focused on large corporate risks, we will continue to invest and expand our Engineering, Property, Entertainment, Energy and Alternative Risk Transfer portfolios in the Pacific.”

Growing the ART business in the Pacific region and more broadly in Asia could help ILS funds get closer to sources of risk in the region, where the fronting of a recognised player like Allianz with a large balance-sheet could prove helpful in their ability to source and underwrite risks.

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