Beazley Re, the Irish domiciled internal reinsurance company of Lloyd’s and international insurance and reinsurance specialist Beazley, is expected to begin underwriting third-party business as well.
Beazley said in its annual report that it filed an application with the Central Bank of Ireland to convert Beazley Re dac, its long-established Irish reinsurance vehicle which underwrites internal business, into a direct insurance company as a response to the UK’s Brexit plans and as a way to maintain access to European markets.
This would turn Beazley Re into a market-facing underwriting vehicle, writing third-party business from ceding companies, as well as perhaps still reinsuring Beazley’s own exposures.
Rating agency A.M. Best explained today, as it affirmed the ratings of Beazley’s Lloyd’s of London syndicates, Beazley Re and Beazley Insurance, that Beazley Re reinsures 75% of the profit of Beazley’s Lloyd’s corporate member, after a deductible has been applied.
Reflecting its role as the group’s internal reinsurer, Beazley Re is viewed to be “integrated and strategically important” A.M. Best said.
A.M. Best notes the ambitions of the firm to get a license to underwrite third-party business using Beazley Re during 2017, allowing the re/insurer to offer non-Lloyd’s underwriting capacity in the European Union.