10/15/2012 1
2012 NAPSLO
A T L A NT A , G A
Catastrophe Underwriting Specialist
OVERVIEW
AmRisc Update Market Conditions/Forecast Elite Producer Statistics
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2012 NAPSLO A T L A NT A , G A OVERVIEW AmRisc Update Market - - PDF document
10/15/2012 Catastrophe Underwriting Specialist 2012 NAPSLO A T L A NT A , G A OVERVIEW AmRisc Update Market Conditions/Forecast Elite Producer Statistics www.amrisc.com 1 10/15/2012 Update Overall Stats Capacity Providers
A T L A NT A , G A
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Insuring over $100 Billion TIV with over 6,000 middle-market policies in-force. Loss Ratio has outperformed E&S market by over 50%.
E&S Occupancies Covered E&S TIV by State
Apartments 34.1% Real Estate 20.9% Munis & Schools 13.5% Condos 13.6% Industrial & Manufacturing 12.8% Florida 43.1% Texas 27.7% Georgia, NC, SC 8.7% Alabama, Louisiana, Mississippi 16.1% Other 4.4% Other 5.1%
100 200 300 400 500 600 700 800 2005 2006 2007 2008 2009 2010 2011 2012
E&S ACIC Projected E&S Projected ACIC
$587.6M YTD
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Total E&S ACIC Wholesale 85% 95% 70% Retail 15% 5% 30%
Premium Source
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AM Best A Manage over $2.5 Billion PML capacity from top-rated Catastrophe markets AM Best A+ AM Best A
Demotech A’ Unsurpassed
AM Best A
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Occupancy Target TIV Coverage Available Coastal Commercial Property Real estate, apartments, condo associations, retail, offices, lessor’s risks, self-storage warehouses, HPR, hotels, restaurants and other general property classes Up to $2.5 billion per account Full-value up to $100 million per risk Lead primary or lead quota-share participation – up to $100 million Cat capacity – per risk Coastal Public Entity $5 million to $2.5 billion per account Lead primary or lead quota-share participation – up to $100 million Cat capacity – per risk Coastal Builder’s Risk commercial, residential, and public buildings up to 24 months $5 million to $100 million 24-month term; $50 million per risk, except $25 million per risk wind capacity TECH – Industrial and Manufacturing plastics, wood, metal, food, textile, electrical, oil and gas, chemical warehousing $5 million to $500 million Full-value up to $100 million per risk Admitted Product for Florida Condo Associations – American Coastal garden style, mid-rise, or high-rise Condos $1 million to $100 million Full limits on ISO form-based policy Force Placed Foreclosed Program for Banks and Financial Institutions commercial, residential, and vacant risks on monthly reporting form Mid-size community and regional banks $10 million per location $1 million occurrence/$2 million CGL (REO only) Flood: DIC-Flood Excess of NFIP and Primary Flood CBRA Zones Single-location accounts up to $100 million Targets high-valued dwellings $10 million per location; higher limits available for condos excess of NFIP RCBAP General Liability Written with Property or stand-alone real estate, habitational, lessor’s risk, offices and retail Follows property risk target General Agg $2M/ $1M Occurrence on ISO form- based policy California Earthquake Real estate, apartments, condo associations, retail, offices, lessor’s risks, self-storage warehouses, and other general property classes Up to $2.5 billion per account Primary, quota-share or first excess – up to $25 million Cat capacity per risk
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Extraordinary number of severe catastrophes: earthquakes,
$105B insured losses 2011 losses were 2.5 times 2010 insured losses
$35.9B insured losses arising from 171 CAT events 5th highest year on record Represents 51% increase over the $23.8B total in 2010
Source: Munich Re; Insurance Information Institute
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Fell only 1.6% in 2011 due to CATs Limited excess capital in reinsurance markets – costs
RMS11 constrained capacity and increased capital needs in
Commercial lines pricing trended higher due to CAT model
Reserve releases continued and marginally improved ROEs
Source: Barclays Capital; Insurance Information Institute
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Globally - $12B insured loss U.S. - $9.3B insured loss Hurricane Isaac losses are estimated up to $2B and are not
included in total above
$8.8B of total is from thunderstorm (tornado & hail) activity No significant earthquakes worldwide Minor tropical activity overall
Source: Munich Re; Insurance Information Institute
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Negligible change in availability Higher scrutiny on use of capital Cost of capital remains high
Growth in sophisticated price monitoring and U/W tools Pricing trends slightly up Meager investment returns will require strong U/W profit
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www.amrisc.com Houston, TX
20405 SH 249, Ste 430 Houston, TX 77070 281.257.5100 Toll Free 888.919.8142 Morehead City, NC 3710-A John Platt Drive Morehead City, NC 28557 252.247.8760 Toll Free 877.284.4900 Birmingham, AL One Metroplex Drive, Suite 230 Birmingham, AL 35209 205.414.2361 Stamford, CT 4 Landmark Square Ste, 301 Stamford, CT 06901 203.658.9150 Davie, FL 351 SW 136 Ave, Ste 201 Davie, FL 33325 954.889.3384 Atlanta, GA 2500 Northwinds Pkwy, Ste 225 Atlanta, GA 30009 770.557.0037