Canadian Underwriter

This global reinsurer is applying for a Canadian branch office

March 13, 2019   by David Gambrill

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Validus Reinsurance Ltd., a Bermuda-based reinsurer acquired by AIG last year for $5.5 billion, is looking to establish a Canadian branch office.

Validus intends to file an application with the Office of the Superintendent of Financial Institutions (OSFI) on or after Apr. 8, 2019 to write reinsurance in Canada, according to a notice posted Saturday in the Canada Gazette.

“In particular, Validus Reinsurance Ltd. intends to provide in Canada treaty and facultative reinsurance of commercial property and casualty and specialty risks,” the notice reads. “All classes of insurance will be limited to the business of reinsurance. The head office of the company is located in Pembroke, Bermuda, and its Canadian chief agency will be located in Toronto, Ontario.”

AIG, which is based in New York, already operates in Canada under the name of its subsidiary company, AIG Insurance Company of Canada, a primary insurer.

Upon announcing the AIG-Validus merger last January, AIG said the strategic rationale was to add reinsurance into a diverse portfolio of other insurance offerings, including:

  • AlphaCat, which manages insurance-linked securities (ILS)
  • Talbot, a Lloyd’s of London syndicate focused on short-tail specialty lines
  • Western World, a U.S. specialty property and casualty underwriter focused on the small commercial excess and surplus (E&S) and admitted markets (including crop insurance).

“The acquisition of Validus represents a significant step forward in AIG’s strategy to deliver profitable growth,” AIG announced at the time of the merger last January. “Validus Re, a leading treaty reinsurer with a focus on property catastrophe, marine and specialty, brings deep relationships with brokers and clients and will benefit from being part of a more diversified business, along with the additional size and strength of AIG’s balance sheet.”