Swiss Re Corporate Solutions is to drop cargo from its marine insurance cover.
The decision comes as part of a shake-up at the Swiss Re subsidiary, which reported heavy losses in its latest earnings report.
Swiss Re Corporate Solutions logged a $55m net deficit in the first quarter of 2019, due mostly to prior-year losses, and a combined ratio of 116%, which indicates an underwriting loss.
Shrinking lines
Swiss Re chief financial officer John Dacey told analysts the company was undertaking a “dynamic management” of the Swiss Re Corporate Solutions insurance portfolio.
He said this would involve “shrinking certain lines” while expanding other profitable ones.
Dacey only mentioned shrinking US liability cover, which has been a major source of losses.
Dacey only mentioned shrinking US liability cover ... However, it is understood that the parent company has also decided to pull the subsidiary from marine cargo and aviation cover
However, it is understood that marine cargo and aviation cover will also be pulled.
Costly claims
Marine cargo is one of the lines of marine insurance where rates have struggled to get off the ground. Costly claims, after a series of large boxship fires, have hit insurance providers hard.
However, a 5% increase in premiums in certain speciality classes, such as hull and machinery cover, has encouraged Dacey to stick with those lines that show potential.
The outfit’s marine division is made up of 50 underwriters and is headed by Patrizia Kern in Zurich.
Swiss Re did not respond to a request for comment..
