BHSI moves to Cologne as it continues German expansion

Berkshire Hathaway Specialty Insurance (BHSI), the specialty insurance arm of Warren Buffett’s global insurance and reinsurance group, has revealed that it will move its expanding German operation from its current Düsseldorf base to Cologne on 1 June. The news comes shortly after Aon opened its new office in Cologne to gain better direct access to the huge local insurance market; and in the week that Newline, the specialty insurance group, revealed that it had obtained formal approval from German supervisor BaFin to launch its Cologne-based European insurance operation, Newline Versicherung AG. Leander Metzger, senior vice-president, northern Europe – head of property and engineering lines, at BHSI, told Commercial Risk Europe that its move to Cologne will help support BHSI’s expansion plans in Germany, because of the availability of the skilled and educated staff needed to support its growth. He said the move to Cologne was a “logical step” because the city lies at the heart of the huge North Rhine-Westphalia economy, has a vibrant and growing insurance and reinsurance market with many local and international carriers and brokers as well as customers, and has great transport links to the rest of Germany and Europe. Mr Metzger said the move to the new office and arrival of new country CEO Andreas Krause from QBE Germany mark important steps in BHSI’s development towards becoming a lead player in the German and wider European insurance market. BHSI was formally launched in Germany in June 2016 under the leadership of Gregor Koehler, former president, northern Europe and the former head of insurance at German chemicals giant Bayer. It has been steadily building its business in Germany, and in September last year also opened an office in Munich. Mr Koehler left BHSI last year to become a risk management consultant soon after Tom Bolt resigned as head of UK and southern Europe and moved back to the US to join AIG. BHSI’s European operations are now led by Chris Colahan, president BHSI UK and Europe, based in London. Mr Colahan is in charge of BHSI’s new operation – Berkshire Hathaway European Insurance DAC (BHEI) – which was authorised by the Central Bank of Ireland to operate as an insurer in Ireland and the European Economic Area (EEA). BHEI will operate as a Designated Activity Company, providing service to the company’s customers and brokers in Ireland and, using European freedom of services rights, across the EEA including Germany. Mr Metzger said the steady growth path followed by BHSI as it expands its offering globally in the specialty insurance market will be continued under Mr Krause’s leadership in Germany, from the new Cologne headquarters. A key part of BHSI’s strategy is to build a capability to deliver multinational solutions for corporate and upper middle-market customers in Germany and across Europe. This means that further new operations in key markets such as France and Spain can be expected before long. “The office move from Düsseldorf to Cologne should not come as a surprise, because Cologne has many advantages. There are many insurance and reinsurance companies based in the city and, of course, both brokers and customers. Another very important aspect is the opportunity for us to attract talent and, with its two universities and dedicated insurance training, Cologne is a great place to find the right staff to support our future growth,” explained Mr Metzger. “This move and the appointment of Andreas Krause is a further step in our journey here in Europe and in Germany. To support our customers and brokers, we need to create multinational capabilities. We need a larger footprint across Europe and dedicated country managers in key markets such as Germany. Germany is too important a market to run without a dedicated country manager, so it was important to take out time and select the right person in Andreas Krause,” added Mr Metzger. BHSI Germany offers a range of property, financial lines and liability solutions to its German customers, both large corporations and the upper middle market. The goal is to continue to extend its offering and move towards a lead position. “We are still pretty young in this market but have the unrivalled backing of the Berkshire Hathaway group and name, and are building a great team. We are not yet a lead carrier for property insurance but [we] are in other lines. Step by step, we are moving in the right direction,” continued Mr Metzger. The BHSI Cologne headquarters will kick off with 15 team members but more additions can be expected during the coming months. Cologne’s rising popularity as an insurance hub in Germany was further underlined by Aon’s decision to open its new office in the heart of the city in January this year. Aon’s new office kicked off with 15 staff. The Cologne office offers commercial risk solutions as well as facultative reinsurance solutions. Aon Germany is based in Hamburg and has 12 German offices and 1,650 staff across the country. At the time of Aon’s Cologne launch, Michael Hendriks, Aon's chief commercial officer in Germany, explained the reasons for the decision. He said: "The expansion of our regional presence is part of our growth strategy. We identified Cologne as a particularly attractive location for us." Mr Hendriks said the region benefits from its central location in the heart of one of the largest and most productive European economic areas, with excellent transport routes. Cologne has also established itself as a trade fair, service location and research centre, and is becoming a magnet for the startup scene, added Mr Hendriks. "In such a region, it's important for us to be close to our customers and to be able to help them quickly," he added.

BHSI moves to Cologne as it continues German expansion

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