With 40 percent premium growth in 2013, Berkshire Hathaway climbed 5 spots in the U.S. extra and surplus lines (E&S) ranking by SNL Fiscal, even though QBE scaled back its North American operations and fell 3 areas.
Berkshire Hathaway Inc. is now the 13th-largest E&S writer in the nation, SNL reported. Berkshire’s almost 40 percent growth for the duration of represented the largest percentage growth of the top 30 market place gamers. It was also well above the 7.6 % enhance for the U.S. home/casualty business as a whole.
SNL explained it analyzed the state pages of statutory statements filed by individual insurance coverage organizations and summed the premiums written in states in which the insurer is not licensed or admitted. These amounts were then aggregated at the group degree. For instance, Berkshire’s complete reflects its Nationwide Fire & Marine Insurance coverage Co., Standard Star Indemnity Co. and Mount Vernon Fire Insurance Co. units as properly as a few other people that write E&S business.
Berkshire formed an working segment in April 2013, identified as Berkshire Hathaway Specialty Insurance coverage, devoted to huge E&S dangers. BHSI, which is primarily based in Boston but has regional underwriting offices in Atlanta, Chicago, Los Angeles and New York, counted 82 staff as of yr-finish 2013, according to public filings. Although at the moment targeted on the non-admitted industry, BHSI sooner or later strategies to publish on an admitted basis as effectively, in accordance to Berkshire Hathaway Inc.’s 2013 Kind 10-K. BHSI gives a selection of coverage, which includes business home, casualty and expert liability lines.
Whilst Berkshire has been increasing, other people have been retrenching. QBE Insurance coverage Group Ltd., for example, went from writing more than $ one billion in direct E&S premiums in the U.S. in 2012 to only $ 777. million in 2013. In basic, the Australian insurance group has witnessed its North American operations stumble recently. The combined working ratio for North America stood at 115.8 in 2013, effectively over the 106.8 recorded in 2012. The last 2013 figure also exceeded advice QBE issued in early December 2013, when it estimated that the ratio would be “around 111.”
QBE has place a remediation plan into place, component of which has entailed scaling back on premium, according to SNL’s report. Gross written premium in the North American segment fell eleven % in 2013, in accordance to slides from a QBE February presentation. But QBE says E&S stays a strategic emphasis for the North American division. In its 2013 earnings release, the organization said it is “committed to resetting its [North American] company combine in 2014 to consolidate its place as a industrial specialty insurer.”