'We have offered IPC staff very generous severance packages'
Validus will not be retaining any of the underwriting team of IPC, the company it acquired in September.
Speaking to Global Reinsurance, Validus Re CEO Conan Ward said due to the ‘scalable’ nature of Validus and its use of technology, the company does not need to increase staff levels in order to take on IPC’s portfolios.
“We are not keeping any of the underwriters,” he said.
“That’s an unfortunate consequence of any merger, unfortunately there are times when you can’t bring those people in.”
He added that staff including underwriters at IPC would be receiving a severance package and will be paid until the end of the year.
“Hopefully that gives people ample opportunity to find another job. We were conscious that the times were not great anywhere including Bermuda so we tried hard to find a place for people employed by IPC.”
Ward added: “We have a very scalable business platform and in some ways it speaks for our infrastructure and costs because we feel we can service that business with our existing staff, so there really was not an opportunity to bring in new people.”
Ward said Validus would be trying to keep as much of the IPC business as they can.
The company also said it plans to build on relationships with brokers who had previously enjoyed a positive relationship with IPC, where Validus did not have a relationship before.
“One of the challenges we have given brokers is to find out how we can grow the relationship. Our risk appetite is much broader than IPC’s. Rather than arguing over a certain slice of the pie, like a cat layer, let’s look at a transaction in a different light.”
He said some of IPC’s business would not be continued such as some index-based products which “do not add to the Validus franchise”.
“Some of the renewing efforts will be more difficult than others, but for the core clients the merger was terrific news.”