Canopius driving E&S progress wave into US casualty market

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

The strategic enlargement, introduced in September, marks the specialty (re)insurer’s dedication to enhancing its capabilities, in line with 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.

“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 aim was to make the most of that pattern, to enter the market in a smart time.”

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

“We imagine we’re not on the prime of the cycle,” Banez stated. “ profitability, there have been historic outcomes that weren’t the most effective, however I feel loads has modified. There’s been numerous resetting of underwriting pointers and methods.

“Our aim was to enter the section the place now we have the liberty of fee, guidelines, and varieties to make the most effective 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, nonetheless, 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 move up the enlargement.

Taking a ‘considerate, selective’ strategy

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

“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 “targeted” 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 deliver the enterprise we would like. Jude’s background permits us to see which companies align with our underwriting urge for food. We deliver a robust providing that the brokerage neighborhood will admire.”

Increasing within the US and Asia Pacific

Primarily based in London, Canopius operates in Australia, Bermuda, Singapore, the UK, the US, Malaysia, and China by means of Lloyd’s China.

Banez advised Insurance Enterprise that Canopius is looking for additional progress 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 finished 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 aim is to get extra visibility and extra presence within the US market by increasing into new segments, and extra casualty was an excellent match for us.” 

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