Mondale Smith, President and COO at EMC Re, has maintained that “humility and agility” will be key for the company to manage attrition and volatility as it looks to grow further and expand into new markets.
EMC Re’s current portfolio is mainly comprised of US-based clients with just under a fifth of its portfolio being international clients.
While it writes some standard casualty lines and multiline programs, the firm is predominately a property excess of loss treaty writer.
However, speaking in an interview with Reinsurance News, Mondale said that EMC Re has a plan for growth that involves further diversification of its business, as well as a focus on writing more reinsurance business from abroad.
“Diversification has several uses,” he explained. “It can be used as a growth lever to bring in new clients, markets and distribution channels. It can also be used as a stabilizer to smooth operating performance volatility, and as a driver of innovation when exploring emerging perils, exposures and covers.”
Likewise, Mondale noted that reinsurance functions best when operated on a global basis and said that EMC Re sees a “world of opportunities” to underwrite more business from abroad.
But in order to manage the higher attrition and volatility that comes with expansion, the company must keep its perspective and remain able to quickly adapt to new challenges, he added.
“Humility is required because as we’re expanding, we’re learning,” Mondale told Reinsurance News. “We can’t further expand into a global market thinking we know everything. We must learn the lessons that are inevitable with growing pains. Agility is also required to ensure we quickly learn and adapt to the nuances that trigger attrition and volatility.”
In addition to these qualities, strong partnerships with brokers and clients will be helpful in traversing different global landscapes, Mondale said, as well as mutually beneficial relationships with retrocession partners.
“Our retro partners are instrumental in our strategic approach to managing our portfolio,” he remarked, going on to say that EMC Re remains open to partnerships with capital markets.
“I believe the lines of business where we have the core competencies and where the pricing adequacy is available will dictate our growth going forward,” Mondale concluded. “Our growth should be purposeful and aligned with our ability to properly select risks and achieve risk-adjusted pricing for the exposures.”