“This new arrangement provides brokers and intermediaries access to Gen Re’s traditionally direct-only capacity through a new underwriting platform fully managed by TransRe,” Gen Re and TransRe stated in a release Tuesday.
General Re markets reinsurance in North America “directly to clients without involving a broker or intermediary,” its parent company, Berkshire Hathaway Inc., stated in its annual report for 2015.
TransRe — a subsidiary of New York City-based Alleghany Corp. —will act as Gen Re’s exclusive underwriting manager for US/Canadian broker market treaty reinsurance business,” notes a fact sheet posted to TransRe’s website.
The agreement does not include facultative business.
“Commencing August 1, TransRe will act as Gen Re’s exclusive underwriting manager for brokered reinsurance treaty business in the United States and Canada,” wrote TransRe president and CEO Michael Sapnar and Kenneth Brandt, TransRe’s president for North America, in a July 5 letter to brokers.
“The facility is expected to be available for U.S. and Canadian broker market treaty business written on and after August 1, 2016, subject to applicable regulatory approvals or authorizations,” the firms stated in a press release.
Both TransRe and Gen Re have offices in Toronto. Gen Re also has a Montreal office.
“We have agreed to a first five year to show our commitment to building a successful broker portfolio together,” the companies stated. “It is our joint intent and desire that our agreement lasts well beyond these first five years.”
Omaha, Neb.-based Berkshire Hathaway — chaired by Warren Buffet — also owns Berkshire Hathaway Reinsurance Group. Berkshire Hathaway ranked fourth – by life and non-life reinsurance premiums written in 2014 – on A.M. Best Company Inc.’s list of the top 50 global reinsurers. Transatlantic Holdings ranked 13th, but those rankings also included life insurers Reinsurance Group of America and Great West Lifeco.
Berkshire Hathaway also owns primary commercial insurer Berkshire Hathaway Specialty Insurance and Government Employees Insurance Company (GEICO) of Chevy Chase, Md.
Gen Re’s P&C reinsurance business in North America — which is based in Stamford, Conn. — has 16 branch offices in the U.S. and Canada, Berkshire Hathaway stated earlier in its 2015 annual report.
TransRe’s lines of business include fire, allied lines, auto physical damage, homeowners multiple peril, directors’ and officers’ liability, errors and omissions liability and general liability, medical malpractice, ocean marine and aviation, auto liability (including non-standard risks), accident and health, surety and credit.
“In 2015, companies controlled by Aon plc, Marsh & McLennan Companies, Inc. and Willis Group Holdings, plc, were TransRe’s largest brokerage sources of business, accounting for approximately 26 percent, 20 percent and 10 percent, respectively, of gross premiums written,” Alleghany said in its 2015 annual report. “These three international brokers dominate the reinsurance brokerage industry.”