AGCS restructures alternative risk transfer business

Allianz Global Corporate & Specialty (AGCS) is to separate its insurance-linked markets team from the rest of its alternative risk transfer (ART) business. It said there is increasing demand from both investors and insurers for products that bring together the insurance and capital markets, and the move is in line with the growing importance of non-traditional insurance solutions for global businesses. From 1 November, AGCS’s ART line of business will be split into two new specialist teams. The insurance-linked markets team will become a standalone line of business known as capital solutions, and will be led by current ART chief underwriting officer Richard Boyd. The remaining ART practice groups providing corporate solutions, reinsurance, and climate solutions will continue under the existing name of alternative risk transfer. This will be led by Michael Hohmann, who moves to ART from his current position as global head of liability at AGCS. The focus of Paul Schiavone, current global head of ART, will shift to his existing regional responsibility as North America head of long-tail corporate lines, said Allianz. “Large companies are increasingly seeking to assume more control over their risk management beyond traditional insurance products in property or liability. With our two new lines of business, we can respond to these needs by designing multi-line, multi-year, parametric or capital-market solutions to protect our clients from earnings and cashflow risks. Our new structure and leadership team will help AGCS to further evolve and grow this important segment of our business,” said Hartmut Mai, AGCS board member and chief underwriting officer, corporate. ART represents a major line of business for AGCS globally, providing €1.135bn of gross written premiums in 2017, including fronting revenues. AGCS said that larger multinational businesses are increasingly demanding more than a product-based response, looking for customised solutions to their more complex emerging or ‘intangible’ risks, which often cannot be covered adequately under traditional insurance. “The tailor-made approach of the new ART line of business brings together AGCS and ART products and services within a bespoke solution, often including non-traditional covers on a multi-line, multi-year basis,” said AGCS. “It also specialises in services such as fronting for captive (self-insurance) programmes for large corporate customers, using Allianz’s worldwide network of local companies and partners, as well as specialist reinsurance and bespoke weather insurance solutions – for example, to protect businesses such as utility companies against fluctuations in weather patterns which directly affect their revenues.” As part of the changes that will see Mr Hohmann become head of ART, he will be replaced as global head of liability by Ciara Brady who will join AGCS on 1 January 2019, moving from her current role as head casualty treaty global and international for Swiss Re. She will be based in Zurich but will travel frequently to key AGCS global locations for the liability business. Until her arrival, AGCS’s deputy global head of liability, Alfred Henneboehl, will assume responsibility for liability.

AGCS restructures alternative risk transfer business

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