Reinsurer dogged last year by questions over its own security has seen conversations return to business development at the Monte Carlo Reinsurance Rendez Vous
Monte Carlo 2009 is a more fruitful experience for XL than it was last year when the company was dogged by questions over its own financial security.
Jamie Veghte, CEO of XL Re, said that his conversations within the industry have changed in the last two quarters and are now going the way he would like.
“Last year, I would have preferred to have been discussing business development with our customers, but if they wanted to discuss security concerns, we were always willing to answer.
“We are satisfied that they did due diligence and understand they have a responsibility to do so.”
Veghte added that he had worked closely with clients.
“We were very transparent and our reputation built over 15 years allowed us to have the kind of constructive dialogue that addressed those concerns.
“Broadly, we came through 2008 in very good shape. We are very bullish and enthused, it is easier to put across that message now,” Veghte said.
XL Re is putting a priority on short tail lines and keeping its powder dry on long tail as and when the opportunity to benefit arises.
“In long tail business there we have been four years of rate reductions.
The market is celebrating the fact that rate reductions are slowing down, but in our view things need to be going up,” Veghte said.
While cat-exposed business is “in a healthy place”, other market sectors are “less adequate, but not terribly under priced”, he added.