Navigators boss eyes global growth goals post Hartford deal
<< (continued from top of page 1)
“Together, that is what we can offer clients.
There will be many opportunities to develop and
drive knowledge-based products and specialties.”
In terms of the global operation, he said the
plan is to take the footprint Navigators has,
which includes offices in France, Italy, Belgium,
Sweden and Denmark, and add additional
products offered by The Hartford.
For example, he said, The Hartford’s business
owners’ policy (BOP), developed for small
businesses in the US, could be well received in
Europe, via Navigators’ platforms there.
It has recently boosted its presence in Europe
with the acquisition of Bracht, Deckers &
Mackelbert, a specialty underwriting agency,
and its affiliated insurance company, Assurances
both based in Antwerp, Belgium.
Galanski said Navigators has always opened
new offices with a view to taking existing
speciality products to new markets.
“That is exactly what we can continue to do
with a broader portfolio,” he said.
He reiterated the company’s commitment
to the Lloyd’s market, where it operates via
Navigators Syndicate 1221, but he noted that
the market’s commitment to reducing the cost
of doing business there must continue and its
influence could wane in some lines of business.
“It is the largest speciality market in the
world and I believe it will remain the epicentre
of things such as marine and energy,” he said.
“But there will be other areas where its
influence will retract. We have already seen that
in the direct fac market, for example. The cost
of operating there has increased steadily over the
past decade. There is a substantial regulatory
burden, the commission fees are high, and
London is also an expensive place to do business.
“It has been a perfect storm in some ways, but
it is also a dynamic market and it will reinvent
itself. It used to be a very entrepreneurial place
where smaller companies can start; maybe it
can eventually get back to that.”
On the reinsurance side, he stressed that
Navigators has never tried to compete with the
biggest reinsurers; instead, it sees it as a way
of targeting speciality lines and making its
expertise available in markets and on lines where
it is impractical to enter on the primary side.
“This is a strategy that has worked really well
for us, giving us access to some great business
that we would never see if we tried to compete
as a primary insurer,” Galanski said.
“We have always been a growth company
and taking that mentality and energy into The
Hartford will be very exciting,” he said. l
<< (continued from bottom of page 1) model
of the new venture has been devised drawing on
all his experiences in the industry. These include
building E.W. Blanch into a major force over
more than 40 years until its sale in 2001. He has
also worked in a primary carrier in recent years
and acted as a consultant to many companies.
“I have been in this game for a very long
time and one thing I have learned is that for
both reinsurers and reinsurance brokers, it
is a very varied landscape, they are not all the
same,” he said.
“When it comes to cat business, it has
historically been very profitable for reinsurers
and that means primary insurers have spent
a lot of premium over the years. The fact is,
why shouldn’t they benefit from that? This is a
better way of doing things.”
When devising the venture, he foresaw a
couple of barriers to COIN Re achieving its
goals. To give it a depth of resources from the
start, it has partnered with Beach Group, which
will supply analytical capabilities and other
service-based functions that a startup broker
would not otherwise have access to.
The second barrier he foresees is the
perception of insurers being wary of working
together for confidentiality reasons.
“Historically, insurers have had a hard time
buying collectively—they often think their business
is better than that of their rivals. But no-one has
operated through a client-owned broker before.
This will be a game-changer for some insurers.”
When an insurer opts to work with COIN
Re it will also have the option to invest in the
company; it will be given a portion of the 55
More cedants seek
reinsurance to curb
INTELLIGENT INSURER’S PCI TODAY IS
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Intelligent Insurer – ISSN 2041-9929
percent always allocated to clients as a result.
Although the shareholding will be diluted in
percentage terms as more clients do the same,
their stake should be worth more in absolute
dollar terms, Blanch explained.
“The size of the pie will also be growing.” l
MORE CEDANTS ARE USING REINSURANCE to
reduce their earnings volatility as they attempt
to make their businesses more attractive to
investors in a low-yield environment, Jean-Paul
Conoscente, chief executive of P&C reinsurance
business globally at SCOR, told Baden-Baden
Combined with demand for capital
protection and solutions to solvency
requirements, this is also driving higher
demand for reinsurance.
“The demand for reinsurance is still
increasing; not from increased severity
cover, but rather from earnings protection,”
“They want to protect the P&L as well as the
THE GUY CARPENTER BADEN-BADEN 2018
Reinsurance Symposium has raised the
question of where the recent wave of mergers &
acquisitions (M&A) is taking the sector.
The last 12 months have been an extension
of the previous few years, and we are now seeing
management changes in many of the world’s largest
insurance and reinsurance players, said James Nash,
CEO International at Guy Carpenter.
In a speech at yesterday’s event, Back to the past: a
return to global composites, Nash said the panel were
exploring a return to the subject of consolidation,
stimulated in part by the announcement of some
recent large combinations, such as AXA-XL and
The question is whether we have seen all this
before and what, if anything, will be different this
time, he noted.
“Is this marketplace a return to the past,
where we see insurance groups once again
enter the volatile world of reinsurance, or is
TUESDAY OCTOBER 30 2018
Swiss Re aims
Mike Van Slooten
Mike Van Slooten
He explained that this trend is partly driven
by the low investment yield environment. This
continues to put pressure on re/insurers and
forces them to focus on producing positive
“We are seeing companies increasingly seeking
earnings protection. Insurers are interested in
solutions that protect against large variations in
their results. In the end, it’s a question of structure
and price,” Conoscente said.
Several big natural catastrophes this year,
including Hurricane Michael in Florida and
Typhoon Jebi in Japan, are unlikely to affect
the buying patterns of European insurers at the
upcoming 2019 renewals, he noted.
“European insurance buying has not been
influenced by the natural catastrophes that
we’ve seen in the US and Japan. There may,
however, be effects on pricing, as reinsurance
prices trend upwards globally,” he said.
“In general, the programmes are very stable.
It’s more about terms and conditions than the
How can we help turn big data into big insights?
Blanch intends new broker COIN Re to be a disruptive force
PCI Today Day 3 Tuesday October 30 2018