S. Korea Okays ERC Reinsurance License

NU Online News Service, April 9, 3:48 a.m.EST?Employers Reinsurance Corp. in Overland Park, Kan saidit has been granted a full reinsurance operating license to marketand write reinsurance business directly from South Korea earlierthis week.

The company said it expects its efforts in that marketplace willbring in more than $34 million in written premium this year.

ERC, a GE subsidiary, said South Korean financial authoritiesapproved ERC's license application after a full review.

"We are pleased with this achievement. Securing this license isthe result of cultivating customer relationships in the region andattaining a high level of market expertise. With this license, weare fully entitled to operate in this large Asian market, whichonly recently was opened to foreign reinsurance companies," saidRick Smith, president and chief executive officer of ERC's GlobalProperty and Casualty unit.

ERC said it is only the fourth foreign reinsurer to secure afull operating license in this country, and as such isparticipating in the April 1 renewal season.

"We wrote about $3 million when we started operating in SouthKorea through our Singapore office in 1998, achieving dramaticgrowth with $20 million in 2002," said Grant Robson, President andCEO of ERC's Asia Pacific operations. "We are confident we'll reachour target of $35 million net written premium in 2003."

ERC noted that South Korea is the second largest non-life market(after Japan) in the Asia Pacific region, and the 10th largest inthe world with direct market premium of approximately $14.1billion, and total property-casualty reinsurance purchased fromthis market amounts to about $1.6 billion.

Y.S. Shin, ERC's CEO in South Korea has been named to lead thereinsurance branch office in Seoul. Mr. Shin has 25 years ofexperience in the South Korean market and he assembled andpresented the reinsurance application with the help of across-functional team, the company said.

ERC claimed it is "recognized as the leading foreign casualtyreinsurer in South Korea."

ERC will partner with its direct clients and the localreinsurer, Korean Re, and assist them in introducing casualtyproducts to the market. ERC established a representative office inSeoul in 1999, with along-term objective of applying for a fulllicense. As a representative office is it not allowed to writebusiness in its own right.

ERC said it wrote business for many years through itsSingaporean operation and forged good relations with the localreinsurer (Korean Re) and the local direct companies.

ERC submitted its application for a South Korean operatinglicense in 2002. More company information is available athttp://www.ercgroup.com/gpc/markets/asia_pacific/skorea/.

Employers Reinsurance Corporation bills itself as the world'sfourth largest reinsurer and a global provider of risk

solutions. ERC serves clients in property and casualty, life,healthcare, and professional liability insurance and reinsurance,an other risk management services.