Catlin Group Ltd., the international property and casualty insurer and reinsurer, announces that the UK Financial Services Authority has authorised the formation of Catlin Insurance Company (UK) Ltd.
Catlin UK is a wholly owned subsidiary of Catlin Insurance Company Ltd. of Bermuda. The new company will underwrite all business previously underwritten by Catlin Bermuda's UK branch office, which was established in December 2003 and which also traded under the name of Catlin UK.
Stephen Catlin, chief executive of Catlin Group Limited and chairman of Catlin UK, said: "The establishment of Catlin UK is an integral element of the Catlin Group's strategy to offer the maximum flexibility to brokers and their clients. Catlin UK enjoyed a strong first year of operations as a branch office of Catlin Bermuda, underwriting nearly $200m in gross premiums. The establishment of a UK subsidiary of Catlin Bermuda will allow us to build on this strong base by allowing Catlin UK to write business in European nations.”
The company will begin writing business on 1 May 2005.
As a UK domiciled and FSA regulated company, Catlin UK will be permitted to underwrite business from any member country of the European Economic Area (‘EEA').
A.M. Best Company today assigned a financial strength rating of ‘A' (Excellent) to Catlin UK, the same rating assigned to Catlin Bermuda and the Catlin Syndicate at Lloyd's of London.
The new company will underwrite all classes of business written by the Catlin Group in London. Catlin UK specialises in underwriting professional indemnity, property, general liability, directors' and officers' liability and commercial crime coverages for UK policyholders.
Catlin UK's initial capital is £68m ($130.6m), which is fully paid. Catlin UK is ultimately supported by its parent company, Catlin Bermuda. This support is demonstrated by a whole account quota share reinsurance treaty by which the majority of Catlin UK's business will be reinsured by Catlin Bermuda. The stockholders' equity of the Catlin Group at 31 December 2004 amounted to $971.2m (£505.8m).+
