Underwriter Announces Withdrawal From Multiple Classes

MS Amlin has said it will return to its core strengths as it revealed it will exit nine lines of business in the coming months.

The company has said the move is part of a new underwriting strategy which will focus on three core strengths and as such will look at the areas where they can drive profits.

In a statement the company said: “MS Amlin has also identified nine classes of business and operations that no longer form part of its future strategic direction. Business Classes include: P&C UK Insurance (Corporate Property / Real Estate / Casualty / Package Binders / Fleet) and Aviation. Operations include Bloodstock in P&C International; UK Yacht (previously Haven); AUA Insolvency Risk Services.”

No dates have been given for when MS Amlin will exit the classes with the firm saying it will leave the classes when it can “ensure continuity for its people, clients and brokers until it finds suitable long-term solutions for each of them”. There was a heavy hint that the company will seek to sell the books to other underwriters rather than place the business into run off.

Now the underwriter said it was to redeploy its capital and management focus “where underwriting expertise is critical and products are not commoditised”.

The three core markets it will now turn its attention to are:

  • High-value Reinsurance.
  • Create a Specialty insurance business by combining its Marine and P&C International platforms.
  • Selectively operate domestic speciality markets in European commercial insurance.

“The Underwriting Review forms one part of an overall transformation plan which is centred on; simplifying and consolidating its operating structure to improve accountability, efficiency and corporate governance; and continuing to develop a more modern working culture and values supported by investment in advanced data analytics,” it added.

Simon Beale, (pic) CEO, MS Amlin described the moves as a move to create a modern underwriting group which reflects the market’s current and future environment.

“Today we are announcing the next chapter of our ongoing transformation plan, as we build on recent progress to create a more modern, relevant, profitable and client-focused business built around the expertise of our people,” he explained. “The decisive measures we are taking across our underwriting portfolio will allow us to focus and build on our track record of providing risk solutions to our clients’ most complex needs. It will refocus our business and ensure we are best placed to serve our clients and their shifting demands, as technology, digitalisation and data and analytics trends continue to change the nature of insured risk.

“Whilst we have identified several classes of business that no longer fit within our long-term strategy, we believe there are other owners that are better positioned to take these great books of business forward. There will be no interruption to the service our brokers and clients receive in the meantime.

“There is a great deal of work ahead to achieve our financial and strategic goals but the new underwriting focus builds on some of the early momentum we have created and more information will follow as we continue to progress with our transformation plan.

“We have a deeply talented workforce with shared values focused on delivering long-term value for clients and sustainable growth for our shareholder MS&AD who has been and will continue to be hugely supportive during this process. We are confident that we will be able to deliver on our ambitious goals and return to our position as a highly profitable, market-leading re/insurer.”