Canopius driving 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, in keeping with Laurie Banez (pictured), head of casualty, US & Bermuda at Canopius.

Banez spoke to Insurance coverage Enterprise concerning the timing of the transfer and the way Canopius desires to place itself available in the market.

“Wanting on the E&S market, we see outcomes have been trending positively by means of mid-year 2023,” she stated. 

“E&S continues to develop throughout the pitch, not simply in casualty, but additionally in property. Our purpose was to make the most of that pattern, to enter the market in a wise 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 stated. “Taking a look at profitability, there have been historic outcomes that weren’t the perfect, however I feel so much has modified. There’s been a number of resetting of underwriting tips and techniques.

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

In the end, 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 develop our presence throughout the group within the casualty sector to permit the group to have a extra numerous portfolio enterprise between property, casualty, and specialty strains,” Banez continued.

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

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

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

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 means of Lloyd’s China.

Banez informed Insurance Enterprise that Canopius is looking for additional development in Asia Pacific and the US. Apart from 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 carried out an awesome job over the previous few years to extend our visibility and product providing, however there’s a lot extra work to do,” Banez stated. 

“Our purpose 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.