Quality Market Security for Marine and Energy Risks

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MARSH Christmas Seminar 2003

• Quality Market Security for Marine and Energy
  Risks

Tore Forsmo CEFOR
Oslo, 2 December 2003
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Global Marine Premium 1992 - 2002 (as reported)
USD Million
Source IUMI/CEFOR
3
International Group PI Premiums (operational
location) (USD m)
Source S P
4
Global Hull Premium Major Markets 1992 2002
USD Million
Source IUMI/CEFOR
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World Merchant Fleet gt 100 GT and Global Marine
Hull Liability Premium
Index of evolution of World merchant fleet
(Vessels gt 100GT) and
Global Marine Hull Liability premium (excl.
PI), 1995100
150
No. Ships
125
Gross tonnage
100
Global Marine Hull Liab.
75
Premium
50
25
0
Source IUMI/CEFOR
1995
1996
1997
1998
1999
2000
2001
2002
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Marine Hull Gross Loss Ratio Actual and
estimated towards ultimate U/W Year 1996 to
2002 (Paid Claims/Gross Premiums)
Assuming a 30 expense ratio (acquisition costs
and management expenses), technical break even
is achieved when the gross loss ratio does not
exceed 70.
Source IUMI/CEFOR
Ultimate calculation based on figures of 7 IUMI
Member Organisations Belgium, France, Germany,
Italy, Norway, UK Lloyds, UK IUA (6 for 1996 No
Germany)
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Marine Hull and Cargo/TransportGross Ultimate
Loss RatioU/W Year 1996 to 2002 (Paid
Claims/Gross Premiums)
Assuming a 30 expense ratio (acquisition costs
and management expenses), technical break even
is achieved when the gross loss ratio does not
exceed 70.
Source IUMI/CEFOR
Ultimate calculation based on figures of 7 IUMI
Member Organisations Belgium, France, Germany,
Italy, Norway, UK Lloyds, UK IUA (6 for 1996 No
Germany)
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Nordic Market - Risk Carriers As per
October 2003

• Carrier S P Hull capacity
• Gard Marine A- US 150M
• Gerling-Konzern Allg. BBB US 25M
• Norwegian Hull Club A US 85M
• Bluewater Insurance BBB- US 15M
• NEFO Fender/NEMI NA US 15M
• Topdanmark BBBpi US 27M
• Tryg Forsikring BBBpi US 42M
• Codan/Trygg-Hansa BBBpi US 60M
• If PC A- US 150M
• Pohjola Api US 55M
• Swedish Club BBB- US 80M
• Inter Hannover A US 10M

Source MARSH
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Norwegian State Guarantee Fund (Non-Life)

• guarantee scheme under Act on Insurance Activity
  (1988)
• protecting the insured (domestic or foreign) in
  case of insolvency
• companies have to participate in the scheme
• contingent liability in balance sheet
  corresponding to 1,5 of direct premiums written
  in all classes of business over the last three
  years

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Capital Issues Believing in the future

• October 2001 Bluewater Insurance NOK
  150 M
• June 2002 Bluewater Insurance NOK 60
  M
• September 2003 NEFO Fender / NEMI NOK
  80 M
• October 2003 GARD taking control of ME
  portfolio from If PC