Canadian Underwriter

Fairfax replaces Allied World CEO

July 22, 2019   by Greg Meckbach

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Scott Carmilani, until recently CEO of Allied World Assurance Company Holdings GmbH,  has a new role with Fairfax Insurance Group, Toronto-based Fairfax Financial Holdings Ltd. announced last week.

Fairfax owns about two-thirds of Zug, Switzerland-based Allied World.

Replacing Carmilani as CEO of Allied World is Lou Iglesias, previously president of Allied World, which writes reinsurance and commercial primary insurance. Allied World also writes insurance in the Lloyd’s market through Syndicate 2232.

Fairfax closed its US$5 billion acquisition of the majority of Allied World in July, 2017. The Ontario Municipal Employees Retirement System (OMERS) took a minority stake in Allied World.

Other Fairfax-owned carriers include Toronto-based Northbridge, Stamford, Conn.-based OdysseyRe and London-based Brit PLC.

Fairfax initially announced its agreement to buy Allied World in December, 2016. During a conference call that month, Fairfax CEO Prem Watsa was asked by investment bankers whether Carmilani would remain in his current position.

“We really do believe in a decentralized operation,” Watsa at the time. “Scott is 52 and we are hoping he is there for the next 20 years.”

Now, Carmilani has “a new role established to promote organic growth and collaboration initiatives across Fairfax’s insurance and reinsurance operations worldwide,” Fairfax said in a press release July 17, 2019.

Canadian Underwriter asked Fairfax Monday asking whether Carmilani is now a full-time Fairfax Financial employee and where is work location will be. At press time,  Canadian Underwriter had not heard back from Fairfax.

The holding company did say in the release that Carmilani will work closely in his capacity with Fairfax Insurance Group president Andy Barnard, and with Fairfax Financial president Paul Rivett.

“In his new role at Fairfax Insurance Group, Scott will build on his network of contacts and broker and customer relationships in order to foster new growth initiatives, such as Fairfax Worldwide, and new collaboration initiatives with our insurance and reinsurance leaders around the globe,” Fairfax said.

Over the past 20 years, Carmilani built Allied World “into a large and highly successful worldwide insurance and reinsurance operation with a track record among the industry leaders,” Fairfax said July 17.

Allied World had a combined ratio of 102.3% during the first three months of 2019, Fairfax reported this past May in a securities filing.

Allied World reported net adverse prior year reserve development in the first quarter of 2019 of US$54.9 million, Fairfax said at the time. That included reinsurance losses from Typhoon Jebi, Hurricane Irma and a hail storm in Australia.

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