Global reinsurance major XL Catlin keen on buyouts to grow

To ramp up its one-year-old India operations, the Bermuda-based American reinsurer XL Catlin, which is amongst the top ten globally, is open to tap the inorganic route, says its global chief executive.
Describing themselves as a slow and steady player with long-term plans, Charles Cooper, chief executive at XL Catlin's global reinsurance business group, said this means that they will not grow for the sake of having a bloated balance-sheet but will be focusing only on sustainable and profitable growth.
The company formally began its operations early last year by opening a Mumbai office which now offers reinsurance solutions, along treaty and facultative reinsurance.

"We want to be part of and support the growth of Indian market. We are a long-term player and so we recognise the part we need to play in making sure the market is sustainable by making sure that we get a fair price for the risks we take onto our balance sheet," Cooper told PTI in a recent interaction without offering a timeline or the quantum of money they will be pumping in here, citing confidentiality clauses.
In fact, XL Catlin was operating in the country since 2004 through its shared services unit, which employs around 1,800, while the typical reinsurance business was being handled from its Singapore office. Its shared services teams deliver a range of critical business support services on a global scale in areas such as underwriting, actuarial, claims, finance and marketing.

XL Catlin began its servicing operations here way back in 2004, when it opened its first offices in Gurgaon, and later in Bangalore.

On the India operations, Cooper said, "thanks to the few hundred million dollars of the Singapore book they had a head-start in the country", but refused to share any specific numbers citing confidentiality clauses.
However, he sounded very bullish about cashing in on this advantage.
On his expectations from here, he said, "We are committed to growing our participation in this market. A fast growing economy means companies will have increased need for risk transfers and local insurers need more reinsurance support".

XL Catlin India writes property, various types of other liability, and aviation and marine segment, he added.
"There is an insurance gap globally and we are focusing on closing the gap, especially in areas prone to natural catastrophes (like earthquakes, flooding, cyclones, tsunamis)," he said.
According to the Insurance Development Forum, about 70 per cent of economic losses from natural disasters are uninsured globally while in the mid and low income countries the uninsured proportion of economic losses often exceeds 90 per cent.
Noting that low insurance penetration, which is tad above one per cent in the country today, is the biggest challenge, Cooper expressed hope that if the economy maintains its present growth rate, a decade down the line, this should treble and reach the global average.

Following the December 2016 Irdai (Insurance Regulatory and Development Authority) approval to global reinsurers, over a dozen global players applied for licences. The new insurance law allow 49 per cent foreign ownership.
Already seven MNCs, including Reinsurance Group of America, Swiss Re, which is the world's No 2, Munich Re, Hannover RE, Scor and Warren Buffett's General Re, have begun operations since then.
Also, the largest insurance syndicate, the Lloyd's of London, opened its branch recently and with one of its syndicates, Amlin, already going operational.