Axis finalizes Novae legacy businessReprints
Axis Capital Holdings Ltd. said its subsidiary, Axis Managing Agency Ltd., the managing agent of Syndicate 2007, has entered into an agreement for the reinsurance to close of the 2015 and prior years of account of Syndicate 2007.
This transaction, designed to wrap up legacy Novae business, covers the net reserve for losses and loss expenses associated with all business underwritten by Novae Group P.L.C. in the 2015 and prior years, Pembroke, Bermuda-based Axis Capital said in a statement Monday.
The agreement has been entered into with Syndicate 2008, which is managed by StarStone Underwriting Ltd., a subsidiary of Enstar Group Ltd., and is effective as of Jan. 1, 2018, the statement said.
An RITC transaction is a reinsurance agreement that closes one or more years of account of a syndicate by transferring the responsibility for discharging all of the liabilities that attach to the closing year(s) of account, net of the right to any income and recoveries due to the closing year(s) of account in return for a premium, the statement said.
"This transaction provides Axis Capital with finality on legacy Novae business underwritten in 2015 and prior years,” Albert Benchimol, president and CEO of Axis Capital, said in the statement.
The move follows Axis’s announcement last week that it would reorganize some of its operations following the Novae deal and that it plans to have the changes in place by second quarter 2018.
The company said in a January 23 statement it would form a global underwriting and analytics unit to partner with the underwriting, claims and actuarial teams within the business segments, to leverage enhanced data and analytics capabilities to help inform decision-making, and optimize group portfolio management and capital allocation.
Axis named Eric Gesick, who now serves as chief risk and actuarial officer, to become chief underwriting officer. He will continue to report to Mr. Benchimol and serve on the company’s executive committee.
Mr. Gesick’s responsibilities will be assumed by Daniel Draper, now chief risk analytics officer, who has been promoted to chief actuary, and Carol Collins, now head of risk governance, who has been appointed chief risk officer. Both will report to Peter Vogt, chief financial officer.
Meghan Anzelc, now head of data and analytics for Axis’s insurance business, has been promoted to chief analytics officer, reporting to Mr. Gesick, expanding her role to include guiding the growth of a global data and analytics center of excellence.
Axis is also realigning its accident and health business into its core insurance and reinsurance segments, which is expected to deliver synergies in combination with Axis’s property/casualty insurance and reinsurance businesses, the statement said
Chris DiSipio, now accident and health chief executive officer, will serve as an adviser to help guide the transition and will leave Axis in April 2018, the statement said.
Axis also plans to combine its ceded reinsurance and third-party capital businesses into a single strategic risk-funding department reporting to Ben Rubin, head of Axis Ventures, who reports to Mr. Benchimol.
Axis also said it will introduce an integrated functional model for both its IT and finance departments, enabling the company to better leverage expertise across the organization.
IT will be led by Chief Information Officer Koorosh Beigian, who reports to Chief Operations Officer Richard Strachan, the statement said. The finance department will be led by Mr. Vogt.