Securis Investment Partners, the London-headquartered insurance and reinsurance linked investment manager, is set to further pull back from excess and surplus (E&S) lines property insurance risks as the firm and partner StarStone are to cease working together for 2019.
Securis has been accessing primary sources of E&S property risks through the relationship, but this area of its portfolio looks set to shrink and be less of a focus as the relationship with StarStone ceases and after the recent news that the ILS manager was discontinuing its direct work in the Lloyd’s of London marketplace.
A significant amount of the business underwritten in Lloyd’s by Securis through the special purpose syndicate arrangement that it has now discontinued was also E&S property insurance risk.
Securis and StarStone began working together earlier this year, with Securis writing non-admitted property risk from both personal and commercial lines, through StarStone, and the ILS manager entering into a quota-share reinsurance arrangement with the insurer’s U.S. non-admitted entity to secure and collateralise the business.
Both parties, Securis and StarStone, have been reviewing their appetites for this type of risk and as a result have agreed to discontinue the partnership for 2019.
The pair said in a statement, “StarStone and Securis have taken the decision to discontinue their partnership for 2019. This follows a strategic underwriting review of all StarStone lines of business to ensure that its underwriting portfolio in 2019 aligns with risk appetite. As a result, StarStone has concluded it will no longer be able to support Securis’ growth ambitions within the property Excess and Surplus lines segment.
“Similarly, following their exit from Lloyd’s and the discontinuation of SPA6129, a Special Purpose Arrangement at Lloyd’s also exposed to property Excess and Surplus lines, Securis’ overall strategy relating to the segment has been under review.”