A new avenue for growth

London Market reinsurers are increasingly willing to consider taking on smaller risks if they are packaged correctly and the business is clearly profitable, according to Tony Weller, group chief executive, Citadel Risk.

He says Citadel, which has been around for 40 years and has an A- rating from A.M. Best, is increasingly placing US business of this type in the London Market, and there is a good appetite for it as long as it is structured correctly and frictional costs are moderate. Citadel’s structure and method of packaging the business mean this is the case and Weller expects growth as a result.

“The fact is, market conditions are so tough in the London Market that carriers are very open to looking at new business from different sources and even working with much smaller accounts if they are packaged correctly,” he says. “I expect this trend to continue. We placed some of this business in London last year and we anticipate solid growth now because of these trends.”