Continued demand among Canadian businesses for commercial bonds prompted AXA XL to appoint Cedric Franklin as vice president and regional director for Canada, the company said.
“Commercial bonds are in high demand from companies seeking alternative financial solutions at a competitive rate; even more so in today’s ever-increasing lending rates,” Franklin told Canadian Underwriter.
“For instance, energy and commodity companies have a strong appetite in commercial bonds so that they can free up capital tied in mandatory security deposits instead of relying on, generally, more expensive existing banking facilities.”
AXA XL’s commercial bond products include supply/supply and install, customs, license and permit, lost instrument, court bonds (appeal, admiralty, bankruptcy trustee), depository, performance and payment for service providers, subdivision, reclamation, closure/post closure, workers compensation, release of lien and utility.
“Cedric’s specialized background will be of great service to our growing business while we continue to strengthen existing relationships with clients and brokers from both the public and private sectors,” said AXA XL country manager Renato Rodrigues.
Rodrigues noted Franklin’s appointment represents expansion of AXA XL’s commercial bond experience-base in Canada and that his new role makes him responsible for growing the company’s Canada commercial bonds business, partnering directly with clients and their brokers.
“Another strong factor driving growth in the Canadian surety market is favorable trends in the regulatory environment that have allowed acceptance of surety bonds when they were previously not acceptable,” Franklin said.
He will work with Alex Barker, head of specialty insurance for Canada, and Pat Dougherty, global head of commercial bonds.
Before joining AXA XL, Franklin was vice president of surety at BFL Canada.