Corporate round-up

JLT intends to buy majority interest in Chile broker Corredores de Seguros JLT has signed heads of agreement to acquire an initial 50.1% interest in the share capital of Alta SA, the holding company of Orbital Corredores de Seguros, the 4th largest insurance broker in Chile. It also has the option to acquire a further 25% in 2020. Alta is also the holding company of Alta Re, a reinsurance broker that commenced operations in April 2010. It has been a member of the JLT International Network since 2010. Alta generated net revenue of $8.1m in 2010 and produced a profit before taxation of $3.4m. The acquisition remains subject to contract and any necessary regulatory approvals.hideIt is anticipated that JLT will initially acquire 50.1% of the company from purchasing shares from the management of Alta, which is led by their CEO, Jose Ignacio Lathrop, and Chairman, Federico Tagle. Both will continue in their existing roles after the proposed transaction has been completed. A further announcement will be made when contracts have been finalised. It is anticipated completion will take place in the second half of 2011. Vyvienne Wade, CEO of JLT’s Latin American operations, commented ‘This acquisition continues JLT's drive to expand its Latin American businesses following a strong performance in 2010. Chile is a well-established insurance and employee benefits market and this acquisition will add to our presence in the region where we already have majority-owned operations in Brazil, Colombia and Peru. It is another step forward in JLT’s strategy of expanding the reach of our core specialisms and increasing our exposure to the world’s faster-growing economies’. Liberty launches new joint initiative to provide war and terrorism capacity to Middle East Liberty International Underwriters (LIU) and Liberty Syndicates have launched a joint initiative to provide war and terrorism insurance capacity for Middle Eastern risks. LIU will distribute its product through Middle Eastern brokers and provide customer service from its regional office in the Dubai International Financial Centre backed by reinsurance capacity and expertise provided by Liberty Syndicates in London. LIU will offer this cover to onshore energy-related risks, industrial units and urban risks such as hotels, restaurants, office blocks and banks. Demand for war and terrorism cover has increased in the Middle East because, in several jurisdictions, banks require back-to-back cover as a precondition for financial support. There has also been a surge in demand for war and terrorism cover following recent events, which resulted in political change in Tunisia and Egypt and widespread civil unrest elsewhere in the MENA region. Michael Burle, Class Underwriter at Liberty Syndicates, said: “We began to discuss opportunities to develop the initiative in August 2010. Since then, political and regulatory events have meant that demand has surged. Eli Bouchaaya, MENA Regional Manager for LIU, said: “We are very pleased to be able to access our group’s Lloyd’s syndicate in order to bring supplementary underwriting expertise and capacity to this complex set of risks. We have worked hard to ensure the product is provided as a rapid and seamless service across the GCC and wider MENA region, with a 24-hour promise for policy quotes.” The joint venture product is marketed via Liberty Mutual Group for the GCC (Saudi Arabia, UAE, Kuwait, Bahrain, Qatar and Oman) and MENA region (excluding Syria, Afghanistan, Libya and Sudan). Mitsui Sumitomo hires new Head of property and casualty underwriting Lloyd’s insurer Mitsui Sumitomo has appointed Graeme Rayner as Head of Underwriting, Property and Casualty, as it attempts to drive growth in the UK and Irish markets. Mr Rayner, who was previously Managing Director of commercial business at QBE Insurance (Europe), is due to join the business in August. Before joining QBE in 1997, he spent three years as an Underwriter at Zurich RE and has worked in the market for a total of 21 years. Andrew McKee, CEO of Mitsui Sumitomo at Lloyd’s, said: “It is our stated aim to grow our main classes of business by working closely with brokers based in the London market and regionally across both the UK and Ireland. By hiring a property and casualty professional of Graeme’s calibre, we are strengthening our underwriting management team whilst growing our business. We look forward to welcoming Graeme to the team in August.” Zurich appoints Quinlan as CUO of PI for Europe and Moore as Financial Lines Head in the UK Zurich have appointed Stuart Quinlan as Chief Underwriting Officer, Professional Indemnity (PI) for Europe, and Alan Moore as Head of Financial Lines for the UK. Both appointments will be effective immediately. In his new role Mr Quinlan, who was previously Head of Financial Lines for Zurich’s UKGI broker division, will assume responsibility for the development of PI business across Europe. Before joining Zurich, he was Underwriting Director for Novae. Prior to his most recent appointment, Mr Moore was Head of Financial and Professional Lines for Zurich Global Corporate UK. His new role will be to build on the expertise of each of the Financial Lines divisions while providing a single focus for Financial Lines in the UK market. Nick Major, UK, interim Chief Underwriting Officer GCUK, said: “By aligning our approach in all sectors in Europe and in the UK, whilst maintaining a specialist focus in each individual sector, we can work as one team to close any gaps and use the combined expertise that we have to the maximum. We are delighted to welcome them both on board.” JLT launch European real estate practice group JLT has announced the formation of a new European Real Estate Practice Group drawn from its established real estate team in London and JLT's network partners throughout Europe. Bill Gloyn, Partner, European Real Estate, JLT says ‘The European Real Estate Practice Group will enhance services to all our existing clients around Europe by improving the understanding of the very different insurance and legal regimes in those territories. It also means we can capitalise on the combined premium turnover that the practice group has with various leading pan-European insurers by improving policy coverage and pricing—for the benefit of clients and their tenants’. Canopius announces formation of UK Retail Insurance Division Insurer Canopius Group Ltd has announced the formation of a new UK retail insurance business division and the appointment of Tim Rolfe as its Chief Executive, reporting to Jim Giordano, Group Chief Underwriting Officer. Canopius’s UK retail division will write lines including commercial combined for SME sector, casualty, motor and specialist property. It will account for approximately 30% of the group’s gross written premiums. UK Retail also acts as the interface for the group’s distribution channels, Arista Insurance and K. Drewe/Look Insurance. Mr Rolfe commented: “Canopius has a diverse UK retail presence, providing us with a solid foundation on which to build and strengthen our position. My aim is to accelerate the performance and capabilities of this important division whilst seeking to meet clients’ requirements in a market which has changed considerably over the past decade.”

Corporate round-up

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