Insurer and reinsurer XL Catlin has appointed a new global head of ceded reinsurance placements, naming Anne Middleton to a role that will see her responsible for reinsurance program terms, structure and pricing.
In a reinsurance market where efficiency is key and options for how to cede risks are increasing, particularly due to the wealth of insurance-linked securities (ILS), collateralised reinsurance and alternative capital strategies available, an innovative approach to structuring reinsurance programs is vital.
Anne Middleton has been named as Global Head of Placements, Ceded Reinsurance at XL Catlin, taking on responsibility for oversight of the firm’s reinsurance program terms, structure and pricing.
Previously Head of Finance for XL Catlin’s Global Energy, Property & Construction lines of insurance, Middleton will be based in London for the new role and will report to Mark van Zanden, Chief Executive of XL Catlin’s P&C Underwriting Capital Management team.
XL Catlin recently leveraged the catastrophe bond market for its largest issuance to-date, with the two Galilei Re cat bonds (the $750m Galilei Re Ltd. (Series 2016-1) and $525m Galilei Re Ltd. (Series 2017-1)) providing the firm a significant chunk of its reinsurance program via the capital markets.
The reinsurance market today demands an agnostic view on capital source, structure, form, trigger and duration of the various reinsurance layers within a program and the capital markets are playing an increasing role in most major re/insurers ceded arrangements. That makes these roles particularly important and XL Catlin clearly wants to take an innovative and open-minded approach to its reinsurance arrangements.
Mark van Zanden said on the appointment; “Having strong reinsurance protection allows our P&C underwriting businesses to improve existing and develop new products to help our clients address their known, emerging and new business risks. Anne will be a supportive partner to our business lines as we look to build reinsurance programs that meet our risk appetites and can help us achieve our underwriting and profitable growth objectives.”
He continued; “Anne’s financial insights and actuarial background, along with her familiarity with many of our business lines, uniquely qualifies her for her new role at XL Catlin. She’ll work closely with our business leaders providing them thoughtful analysis and innovative ideas to help them evaluate and reinsure their businesses’ risk exposures.”
Having ample, efficient and flexible reinsurance and retrocessional capital behind a re/insurance firm is vital, providing it with the ability to enter new business lines, innovate and experiment, manage its capital requirements and optimise its returns to its shareholders.
Therefore reinsurance buying (or perhaps capital and capacity strategy) looks set to become an increasingly technical and high-profile part of global re/insurance players businesses, with XL Catlin clearly keen to put a team in place to deliver this and the Galilei cat bonds perhaps reflecting its desire to leverage the most efficient capital and reinsurance structures available to it.