CNA Hardy is to exit North American property binders and renewable energy business due to poor market conditions and under-profitability, The Insurance Insider understands.
Sources told this publication that the insurer was set to exit North American property binders at 1 January renewals.
Tim Bartleet, senior underwriter for US and international property binders, is set to retire next year, while fellow senior underwriter David Haslam’s role is under consultation.
The book is estimated at around £10mn-£15mn ($12mn-$18mn) in premium, and its core US appetites cover coastal wind exposed property, SME, habitational, leisure and hospitality and California, Pacific North West and New Madrid earthquake risks.
This publication reported earlier this year that CNA Hardy had already started pulling back on US binder business, withdrawing capacity from Ethos’ property binder.
However, the carrier remains committed to the international property binders market.
CNA Hardy has also exited from renewable energy risks. Jon Bloend Soerensen, who led the European renewables business, is understood to have left the firm.
According to sources, the book is valued between $20mn-$25mn and was written out of London, Paris and Copenhagen.
CNA Hardy was viewed as a leader in the class with a capacity of up to $100mn for a wide range of coverages for renewable energy clients.
The renewable energy sector has been beset by heavy losses, partly due to more frequent and severe natural catastrophes such as hail as well as an increase in construction losses.
The heavier loss experience has led to a consequent constriction in capacity, with sources telling this publication that insurers are re-evaluating their underwriting strategy regarding the class, with some restricting their cover, increasing deductibles and tightening terms and conditions.
CNA Hardy is still committed to its wider energy business, which is written from its Lloyd’s platform.
Both the renewable energy and North American binders books represent a small percentage of the carrier’s overall premium.
The exit from the two classes is understood to be part of ongoing work at CNA Hardy to scale back in underperforming business and redeploy capital, talent and resource to its chosen specialisms.
Most recently in Europe, the carrier has promoted David Legassick from his current role as head of life science, technology and cyber and life science to head of customer segments for Europe.
Those segments include construction, energy, financial institutions, healthcare, manufacturing, professional services, technology and cyber, and transport and logistics.
The two most recent class exits follow withdrawals by the carrier from property treaty, marine hull and construction and engineering all risk business at Lloyd’s last year.
The insurer also closed its Lloyd’s Asia operations last year, ceasing underwriting new business across property direct and facultative, treaty, construction, marine, power, healthcare, financial lines and casualty business.