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| Type | Public (LSE: CGL) |
|---|---|
| Founded | 1984 as Catlin Underwriting Agencies Limited |
| Headquarters | Hamilton, Bermuda |
| Key people | Sir Graham Hearne (Non-Executive Chairman), Stephen Catlin (CEO) |
| Industry | Insurance/Reinsurance |
| Products | Specialty Insurance (including Energy, Aviation/Aerospace, Property, General Liability, Professional Liability/Indemnity, Marine Hull/Liability, Cargo and Specie) and Reinsurance (Property, Casualty, Marine & Aviation) |
| Revenue | $3,437.0 million (2008) |
| Operating income | $(12.6) million (2008) |
| Profit | $(2.9) million (2008) |
| Employees | 1,100 (2008) |
| Subsidiaries | Catlin Syndicate at Lloyd's, Catlin Bermuda, Catlin UK, Catlin US |
| Website | www.catlin.com |
Catlin Group Limited (LSE: CGL) is a Bermuda-based specialty insurance and reinsurance company. Catlin operates four underwriting platforms - the Catlin Syndicate at Lloyd's of London, Catlin Bermuda, Catlin UK and Catlin US - as well as a network of international offices. Catlin shares are listed on the London Stock Exchange, and the company is a member of the FTSE 250 Index.
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History
Catlin Underwriting Agencies Limited (CUAL) was established as an underwriting agency at Lloyd's of London in 1984 by Stephen Catlin, who today remains chief executive of the Catlin Group. Catlin's first Lloyd's syndicate (Syndicate 1003) began underwriting in 1985 on behalf of Lloyd's Names (private individuals who invested in the Lloyd's market) with a premium capacity of £6 million [1].
Syndicate 1003 grew successfully during its early years, outperforming the Lloyd's market as a whole, particularly during the period from 1988-1992 when Lloyd's reported huge financial losses [2].
By its 10th anniversary in 1995, Syndicate 1003 had increased its premium capacity to £170 million. During that year, the company received a substantial private equity investment from Western General Insurance Company of Bermuda, which was controlled by the Pritzker family. The investment allowed Catlin to establish a second Lloyd's syndicate (Syndicate 2003), which underwrote coverage in parallel with the established Syndicate 1003. While Syndicate 1003 continued to write coverage on behalf of capital supplied by traditional Lloyd's Names, Syndicate 2003 was backed by capital solely supplied by Catlin.[3]
In 1999, Catlin incorporated a holding company in Bermuda, originally called Catlin Westgen Holding Limited and later renamed Catlin Group Limited. Catlin was the first of the traditional Lloyd's of London managing agents to establish a holding company in Bermuda, a strategic move later copied by several of its peers. [4].
Following the World Trade Center tragedy in 2001, Catlin expanded its operations and strengthened its balance sheet. In 2002, Catlin raised US$532 million in private equity funds from a consortium of investors (including $482 million of new equity capital and the provision of a $50 million term loan facility. The equity capital, in the form of convertible preferred stock, is being provided by a consortium of private equity investors led by Capital Z Financial Services, J.P. Morgan Corsair Capital Partners and The Cypress Group. It was the only company operating at Lloyd's to receive private equity financing in the wake of 9/11; most of the funds that were injected into the insurance market were directed to start-up insurance and reinsurance companies formed in Bermuda [5]. Following the capital raise, Catlin purchased the capacity that had been supplied to Syndicate 1003 by Lloyd's Names and subsequently merged Syndicate 1003 into Syndicate 2003.
Catlin shares were listed on the London Stock Exchange in 2004. The Group's initial public offering, which was several times oversubscribed, raised nearly $200 million in new capital [6].
In October 2006 Catlin announced that it intended to acquire Wellington Underwriting plc, which managed one of the largest syndicates at Lloyd's and had established underwriting operations in the United States: the acquisition was completed on 18 December 2006.[7]
Operations
Underwriting Platforms
Catlin operates four underwriting platforms. Operating multiple operating platforms in different insurance markets increases the diversity of the business the Catlin underwrites:
- The Catlin Syndicate at Lloyd's (Syndicate 2003) is the Catlin Group's oldest and largest operating platform. The Syndicate, which has a total premium capacity of £1.25 billion for the 2008 underwriting year, is the largest syndicate at Lloyd's based on premium capacity. It is a recognized leader of business at Lloyd's across nearly all of classes of business it underwrites. 2007 gross premiums written amounted to US$2.54 billion.
- Catlin Bermuda (Catlin Insurance Company Ltd.) began underwriting in 2003 and is now a recognized player in the growing Bermuda insurance marketplace. Catlin Bermuda specializes in underwriting property reinsurance and casualty reinsurance, political risk and terrorism insurance as well as structured risk products. Catlin Bermuda also provides reinsurance support to the other Catlin underwriting platforms. Gross premiums written in 2007 amounted to US$312 million.
- Catlin UK (Catlin Insurance Company (UK) Limited), established in 2004, specializes in underwriting property and casualty insurance for UK businesses and professionals. It also underwrites classes of business that are also underwritten by the Catlin Syndicate. Catlin UK wrote US$440 million in gross premiums in 2007.
- Catlin US is the Catlin Group's newest underwriting platform and includes all of Catlin's operations based in the United States. Catlin US writes both insurance and reinsurance coverages. Coverage is underwritten on behalf of US-domiciled admitted and non-admitted insurance companies as well as the Catlin Syndicate and Catlin UK. Total gross premium volume (including business written by Catlin US on behalf of other Catlin underwriting platforms) amounted to $314 million in 2007.
International Offices
Catlin opened its first offices outside of London in 1999 when it established offices in Singapore and Kuala Lumpur, Malaysia. In 1999 it also acquired a managing general agency in the United States with offices in Houston and New Orleans.
Since that time, Catlin has greatly expanded its network of offices around the world. The Group maintains that these offices serve to diversify Catlin's underwriting portfolio as the offices underwrite regional business that would not normally be written at Lloyd's or one of its other underwriting platforms. The offices also allow Catlin to work more closely with clients and their brokers on a local basis.
Currently, Catlin operates 40 offices in 18 countries, including its Bermuda headquarters.
Apart from the offices in Singapore and Kuala Lumpur, Catlin currently operates international offices in Cologne, Munich, Paris, Barcelona, Zurich, Innsbruck, Antwerp, Genoa, Guernsey, Hong Kong, Shanghai, Tokyo, Sydney, Toronto, Calgary and Sao Paulo.
In the UK, Catlin operates offices in London, Glasgow, Leeds, Hitchin, Birmingham, Tonbridge and Ipswich.
In the United States, Catlin US has established offices in Atlanta, Chicago, Cleveland, Columbus, Hartford, Houston, Lexington, New Orleans, New York, Paramus, Philadelphia, San Antonio, Scottsdale, Sonoma, Summit and Walnut Creek.
Classes of Business
Catlin underwrites more than 30 classes of insurance and reinsurance:
- The classes of insurance underwritten by Catlin include property, general liability, professional liability/indemnity, energy, aviation, marine hull and cargo, accident and health, specie, satellite, equine and livestock, product recall, construction and engineering, motor fleet, and inland marine.
- Classes of reinsurance underwritten include property (both catastrophe and pro rata), casualty, marine and aviation, and excess of loss.
Ratings
All of Catlin's underwriting units have been assigned a financial strength rating of 'A' (Excellent) by A.M. Best. Standard & Poor's has assigned an insurer financial strength rating of 'A-' (Strong) to the Catlin Group. [8]
The Catlin Syndicate also benefits from the 'A+' (Strong) financial strength rating assigned by Standard & Poor's to the overall Lloyd's market.
Sponsorship
Catlin is the title sponsor of the Catlin Arctic Survey, a major scientific project to measure the thickness and density of the permanent North Pole ice floating in the Arctic Ocean. The Survey's findings are aimed to determine, with a much greater degree of accuracy, when the Arctic sea ice could disappear. The Catlin Arctic Survey will be conducted by three experienced polar explorers, led by Pen Hadow.
External links
References
- ^ "Listing Particulars Relating to Catlin Group Limited’s Global Offer of Common Shares" March 2004
- ^ "Listing Particulars Relating to Catlin Group Limited’s Global Offer of Common Shares" March 2004
- ^ Catlin Westgen Group Ltd announces $532m capital raising July 2002
- ^ "Lloyd's Under Pressure as Bermuda Exodus Gathers Pace" "The Independent", Sept. 19, 2006
- ^ "Catlin Westgen Group Limited Announces $532 Million Capital Raising" "Business Wire," July 4, 2002
- ^ "Catlin IPO to Raise $200 Million" "Insurance Journal," March 5, 2004
- ^ "Catlin Makes a Move to Acquire Wellington Underwriting" "Financial Times," Oct. 31, 2006
- ^ Catlin Group Limited Website
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