Insurer to establish new global energy practice
Lloyd’s insurer Chaucer has unveiled a new strategy, under which it will aim to deliver a post tax return on equity (ROE) of 12% across the cycle. The company also plans to cut its combined ratio by 2% and become a top-three dedicated Lloyd’s business.
As part of the new strategy – dubbed Foundation, Flex, Flagship – Chaucer plans to establish a new global energy practice, incorporating the company’s engineering expertise. The ‘Flagship’ part of the new strategy refers to the company’s intention to make this new practice the flagship product line for its underwriting portfolio.
“A key focus of the management team over the past few months has been to ensure we have the strategy and resources in place to make the most of our core strengths as a business going forward,” said Chaucer CEO Bob Stuchbery in a statement. “With the launch of our Foundation, Flex, Flagship strategy, we firmly believe we are now better positioned to meet the developing needs of our markets, to deliver a superior return on capital and to build enduring value for our shareholders.”
The company also intends to develop its direct motor business in the UK by establishing a presence on all the major price comparison sites by the end of Q1 2011. It aims to increase business written through this channel to £21m in 2011.
Chaucer aims to increase its commitment to North American property catastrophe treaty business, and has completed its withdrawal from US direct and facultative business to achieve this. This makes up the ‘Flex’ component of the new strategy.
The ‘Foundation’ element of the strategy refers to Chaucer’s plan to continue to focus on its core business of 27 London-underwritten specialist classes, including the UK division and its new international division.