Leading marine insurer Swiss Re Corporate Solutions is to transfer its Genoa-based hull and machinery business to the DUAL Group.
It is understood as part of the transfer Swiss Re’s head of global hull Andrea Cupido will also join DUAL.
DUAL is a managing general agency (MGA) owned by international broker Howden.
It is predominantly based in Europe, but with a global spread of 21 offices, it claims to be the world’s largest underwriting agency.
DUAL recently launched a marine insurance business to offer hull, marine liability, protection and indemnity and offshore energy insurance lines.
In a statement, Swiss Re described the move as a “strategic partnership that allows us to combine the strengths of DUAL and Swiss Re”.
“Swiss Re will continue to provide capacity to service this business, ensuring broker partners and insureds can benefit from a smooth transition and continuity,” it said.
There is no indication of the amount of capacity or business volume Swiss Re will be transferring over to DUAL.
The market was confused as to the motives behind the move with Swiss Re a highly regarded and well-established provider of marine insurance and DUAL a relative newcomer.
“Why would you hand over your capacity for someone else to deal with?” questioned one broker.
Others suggested market developments might be behind the move.
The hull and machinery market is showing signs of softening this year after three strong years that have seen rates return to profitable levels.
The higher rates have attracted several new MGAs to the market, which has increased capacity and added to the downward pressure on rates.
In the latest example, earlier this month a new private equity-backed MGA Ai Marine Risk launched in London.
Swiss Re is also decarbonising its insurance portfolio and has committed to reducing its business in the most carbon-intensive industries.
It is a founding member of the Poseidon Principles for Marine Insurance, which closely monitors the emissions performance of the ships operating under its cover.
