Search
 

The E&S market attracts capital-and competition

(Associate Editor Jeffery Beckner contributed to this article.) MONEY GOES where money grows, so it should be no surprise that a lot of capital lately has been attracted to the E&S marketplace. Much of it has been

By Harmony Nicole Fortenberry | Updated on July 31, 2007

(Associate Editor Jeffery Beckner contributed to this article.) MONEY GOES where money grows, so it should be no surprise that a lot of capital lately has been attracted to the E&S marketplace. Much of it has been drawn to the property catastrophe market, which was in crisis after Hurricane Katrina produced huge losses in 2005 and reinsurers sharply increased rates in 2006. Then last year’s hurricane season turned out to be a non-event, and insurer profitability soared.

But while capacity is up in the E&S marketplace–and not just for property CAT risks–written premiums have grown slowly, if at all. That has set the stage for stiff competition and squeezed profits. To gauge how this dynamic is playing out in the summer of 2007, we recently contacted executives of five longtime E&S insurers. We also got in touch with the president of a company that is new to the market. Their comments follow. Kevin KelleyLexington Insurance Co.At Lexington Insurance Co., the nation’s largest E&S insurer, Chairman and CEO Kevin Kelley sees a competitive but manageable market, albeit one that could be subject to volatility from future windstorm activity and geopolitical risk, among other factors.

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.

INCLUDED IN A DIGITAL MEMBERSHIP:

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

PropertyCasualty360

Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2024 ALM Global, LLC. All Rights Reserved.