Global speciality insurer and reinsurer MS Amlin has undergone a major overhaul of its insurance lines but, unlike many other similar companies, has decided to keep the marine business intact.
The cutbacks, which involve withdrawing from a total of nine classes of business, are part of an ongoing plan to transform the company's financial performance by 2023.
However, its marine business has been largely untouched. MS Amlin's marine portfolio covers hull, cargo, fixed premium protection and indemnity, yacht and war risk cover. It brings in around £430m ($528m) in premium annually.
MS Amlin has instead decided to combine marine cover with its international property and casualty and aviation lines in a newly formed speciality division.
The speciality group will be headed by division chief executive Tom Clementi.
MS Amlin chief executive Simon Beale said: “The decisive measures we are taking across our underwriting portfolio will allow us to focus and build on our track record of providing risk solutions to our clients’ most complex needs. It will refocus our business and ensure we are best placed to serve our clients and their shifting demands, as technology, digitalisation and data and analytics trends continue to change the nature of insured risk.”
MS Amlin’s move comes in contrast to some other speciality insurers, which are continuing the recent trend of cutting back on marine business.
In September ArgoGlobal said it is to withdraw from its Lloyd’s 1200 Syndicate underwriting operations in Asia, including “most” of its hull underwriting business.
Matt Harris, group head of international operations at ArgoGlobal, pointed out that Syndicate 1200 Asia represented only 3% of the company’s total marine hull premiums and its closure does not represent a withdrawal from marine.
“It is important to note, however, we are fully committed to the remaining marine classes we insure and insuring hull on non-Lloyd’s platforms,” he said. He added that the company is considering selling hull cover through its the Dubai platform of Syndicate 1200.
Axis Capital also pulled out of marine last month as part of a cull of unprofitable lines of business. It is understood that its London operation will continue to provide war risk cover.
Earlier, major marine insurance provider Swiss Re said it would pull out of providing cargo cover and move most of its marine hull and machinery business out of London to Genoa.
