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 needs 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 mentioned. 

“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 development, to enter the market in a wise 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 high of the cycle,” Banez mentioned. “ profitability, there have been historic outcomes that weren’t the perfect, however I believe so much has modified. There’s been numerous resetting of underwriting tips and techniques.

“Our purpose was to enter the phase the place we now have the liberty of charge, guidelines, and types to make the perfect underwriting selections as peel again the onion and perceive what the exposures are, what the chance 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 move up the growth.

Taking a ‘considerate, selective’ method

Whereas Canopius has an extra casualty providing in some skilled traces, and not too long ago entered the medical malpractice area on a gaggle foundation, its total 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 traces,” Banez continued.

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

“We’re not seeking to be considerably disruptive. We’re seeking to be considerate in how we method the enterprise and underwrite very rigorously to make sure that we get a various portfolio,” she mentioned.

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

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 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 achieved an ideal job over the previous few years to extend our visibility and product providing, however there’s a lot extra work to do,” Banez mentioned. 

“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.