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Brit to close inland marine, yacht and LatAm operations in the US   

Aerial view of super yachts in harbor on the Mediterranean coast

Brit Global Specialty USA (BGSU) has withdrawn from inland marine, yacht and Latin American business, The Insurance Insider can reveal. 

Market sources said the closures came after the US operation reported a combined ratio of 119 percent for the second quarter of 2019. 

A number of senior underwriters have exited BGSU following the pull-back, which was announced last week. 

The departures are understood to include executive vice president of specialty Thomas Carroll. 

Brit’s move to curtail its US book follows wider uncertainty over the marine rate environment across the US and also in the London market.

While cargo underwriters in London have achieved high-double-digit rate rises at recent renewals, yacht and hull accounts across the board have remained below a level of technical profitability. 

News of the insurer’s withdrawal from the three lines comes after this publication on Monday revealed Brit had shuttered its Latin America and Caribbean-focused Miami office. 

Following the office closure, it is understood that Brit will continue writing Latin American and Caribbean business from London and other locations. 

Earlier this year, Brit placed the role of its London-based hull class underwriter Bob Clarkson under consultation. 

At the time, market sources told The Insurance Insider that the future of the position at the business remained unclear. 

In the first half of 2019, Brit returned a net profit of $120.3mn, nine times higher than in the same period last year. The carrier’s combined ratio improved by 1.5 percentage points to 94.4 percent.   

In a statement to The Insurance Insider, BGSU confirmed it would be exiting inland marine, yacht and Latin American business. 

“The decision to cease participation in certain classes reflects BGSU’s objective to continue its successful growth through a renewed focus on core lines where it identifies the most significant opportunities to build scale and generate sustainable and profitable returns.

“[BGSU] has established a strong reputation for entrepreneurial expertise, market-leading service and product range and represents a critical component of Brit’s distribution strategy,” the statement said.   

Brit is owned by Ontario-headquartered Fairfax Financial, which is in the process of buying out Brit’s minority shareholder Ontario Municipal Employees Retirement System. 

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