Markel International has revealed plans to discontinue writing London open market property insurance business with immediate effect.
William Stovin, president of Markel International, said; “Dean Pitts, supported by Guy House, has worked hard to make this business successful but, sadly, the market has been against them, in terms of both capacity and pricing.
“That has been a feature of the market for some time and, despite their and our best efforts and a range of strategies, we have not been able to overcome this fundamental issue.
“Both will leave the business and go with our best wishes and our support for the future.”
Markel said this will have no impact for its U.S. and Bermuda property businesses which, for reasons of size and structure, have not faced the same issues as the London open market business.
The industry’s excess capital problem has made the London property underwriting market a highly competitive one, with interest from alternative capital providers also exacerbating the competition in this space.
As a result, there have been concerns over the profitability of property business underwritten in London for some years, with the line no longer meeting some companies costs-of-capital.
Markel is taking the opportunity to bow out of this space, preferring to source this type of business through its other offices and distribution channels.
