Max Re forms new aviation unit
Max Re Capital Ltd is the latest new market in the aviation sector with the arrival of former La Réunion Aérienne underwriter Olivier Marre.
The Bermudian reinsurer – which has written an aviation reinsurance account for four years – is to form a direct aviation arm from its Dublin offices.
Marre – who left La Réunion Aérienne earlier this year after ten years – had been previously linked with the proposed aviation start-up (re)insurer, Augsburg Re, which is led by the former GE Frankona aviation underwriter Klaus Gierstner.
“Aviation reinsurance has been a core business of Max Re for four years and we are pleased to now offer aviation insurance as a complementary product line. Olivier brings a wealth of experience that will serve the company well as we enter this business,” explained Bob Cooney, chairman, president and chief executive of Max Re.
Marre will take up the role of senior vice president, aviation insurance, and the company will look to provide insurance on a worldwide basis to airlines and aircraft products manufacturers.
2006 has seen a number of new markets emerge in the aviation sector. CV Starr and Limit have both opened direct aviation businesses in Lloyd's this year, while the "class of 2005" reinsurer Flagstone Re recently announced it was opening an aviation reinsurance business, setting up an agreement with Sirius International for its Zurich-based former Converium underwriter Mario Montelatici to underwrite on the Bermudian's paper.
There are, however, concerns over rating pressures in some aviation lines. Lloyd’s insurer Amlin plc said last month that its airline account “continues to be under pressures”, while unveiling a 116 percent combined ratio in its aviation account for the first half of the year.
“The swing in the result reflects the continued shrinkage of the higher margin but more volatile airline account in the face of increased competition coupled with a series of small to medium sized airline losses,” explained the insurer.