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 way 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 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 high of the cycle,” Banez stated. “ profitability, there have been historic outcomes that weren’t the very best, however I believe lots has modified. There’s been lots of resetting of underwriting pointers and techniques.

“Our purpose was to enter the phase the place we now have the liberty of price, guidelines, and kinds to make the very best underwriting choices as peel again the onion and perceive what the exposures are, what the danger 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 area, to go up the growth.

Taking a ‘considerate, selective’ strategy

Whereas Canopius has an extra casualty providing in some skilled traces, and not too long ago entered the medical malpractice area on a bunch foundation, its general casualty providing had room for development. 

“We’re energized to see how we will develop 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 traces,” 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 rigorously 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 may assist us carry the enterprise we would like. Jude’s background permits us to see which companies align with our underwriting urge for food. We carry a robust providing that the brokerage neighborhood 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 way of Lloyd’s China.

Banez informed 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 carried out an ideal job over the previous couple of 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.