Canopius using E&S development wave into US casualty market

Canopius Group has expanded into the US home extra casualty amid what it perceives as a wave of development within the extra & surplus (E&S) market.

The strategic growth, introduced in September, marks the specialty (re)insurer’s dedication to enhancing its capabilities, based on Laurie Banez (pictured), head of casualty, US & Bermuda at Canopius.

Banez spoke to Insurance coverage Enterprise in regards to the timing of the transfer and the way Canopius needs to place itself out there.

“Trying on the E&S market, we see outcomes have been trending positively by mid-year 2023,” she mentioned.

“E&S continues to develop throughout the pitch, not simply in casualty, but in addition in property. Our objective was to make the most of that development, to enter the market in a smart time.”

Conversations with opponents and brokers helped inform Canopius’ views about the place the E&S market is heading.

“We consider we’re not on the prime of the cycle,” Banez mentioned. “ profitability, there have been historic outcomes that weren’t the most effective, however I feel lots has modified. There’s been quite a lot of resetting of underwriting pointers and methods.

“Our objective was to enter the section the place we’ve the liberty of price, guidelines, and varieties to make the most effective underwriting selections as peel again the onion and perceive what the exposures are, what the chance traits are, and what the controls are in place.”

Finally, nevertheless, the timing was proper for Canopius due to market alternative and expertise. It secured Jude DiBattista, a thirty-year veteran within the casualty E&S house, to move up the growth.

Taking a ‘considerate, selective’ strategy

Whereas Canopius has an extra casualty providing in some skilled strains, and lately entered the medical malpractice house on a gaggle foundation, its general casualty providing had room for development.

“We’re energized to see how we are able to broaden our presence throughout the group within the casualty sector to permit the group to have a extra various portfolio enterprise between property, casualty, and specialty strains,” Banez continued.

Elaborating on its urge for food, Banez mentioned Canopius is taking a “considerate, selective” strategy to the brand new market, with a “targeted” distribution.

“We’re not seeking to be considerably disruptive. We’re seeking to be considerate in how we strategy the enterprise and underwrite very rigorously to make sure that we get a various portfolio,” she mentioned.

“[We’re working with] a choose group of E&S brokers, but in addition sure choose people that can assist us deliver the enterprise we wish. Jude’s background permits us to see which companies align with our underwriting urge for food. We deliver a powerful providing that the brokerage group will recognize.”

Increasing within the US and Asia Pacific

Based mostly in London, Canopius operates in Australia, Bermuda, Singapore, the UK, the US, Malaysia, and China by Lloyd’s China.

Banez advised Insurance Enterprise that Canopius is searching for additional development in Asia Pacific and the US. Except for its foray into US home extra casualty, Canopius additionally introduced a pair of appointments in Australia final September to bolster its regional presence.

“We’ve completed an awesome job over the previous couple of years to extend our visibility and product providing, however there’s a lot extra work to do,” Banez mentioned.

“Our objective is to get extra visibility and extra presence within the US market by increasing into new segments, and extra casualty was a superb match for us.”

What do you make of Canopius’ growth into the US extra casualty market and its technique? Inform us within the feedback.