Ace’s Greenberg: TRIA Renewal a ‘No-Brainer’

Ace Ltd. CEO Evan G. Greenberg gave a full-throttle endorsement for the renewal of the Terrorism Risk Insurance Act, saying without it there would be little or no terrorism insurance in the market.

 “I think from any rational point of view, TRIA is really a no-brainer to renew,” says Greenberg (pictured at left) during a conference call to discuss the insurer’s first-quarter earnings.  “It provides a backstop of certainty that allows businesses to continue on.”

“It is not a benefit to the insurance industry; it is a benefit to business overall” he adds. “If it wasn’t for TRIA, you wouldn’t see much terrorism insurance sold.”

Greenberg says Washington’s current political climate could prevent Congress from reauthorizing the act, but that would be a terrible mistake.

Insurers, he says, will take a limited amount of risk, dependent on how much reinsurance is available. Capacity would dry up quickly because the risk would be densely concentrated in a geographic area, he notes.

Greenberg says the terrorist bombing of the Boston Marathon would not have an impact on Ace’s underwriting of terrorism. He says the company remains thoughtful in its aggregation of risk and the exposures it writes, as it has since it began writing the program in 2001.

He says the bombing, while not destructive in terms of the magnitude of property damage, non-the-less underscores the importance of TRIA, which “allows insurers to more widely offer and underwrite terrorism related exposures.”

Turning to the company’s first-quarter results, the Zurich-based insurer reports “a strong start to the year,” says Greenberg. Ace recorded a first-quarter combined ratio of 88.2, an improvement of 1 point over last year.

Compared to a year ago, first-quarter net income dropped 2 percent, or $20 million, to $953 million. After-tax catastrophe losses including reinstatement premiums of $28 million, and a drop in net investment income of 2 percent to $531 million, impacted the results.

Net written premiums were up 6 percent during the first three months to $3.8 billion.

Comments

Resource Center

View All »

Complimentary Case Study: Helping achieve your financial goals By:...

Find out how a Special Investigation Unit used TLOxp to save the company money and...

Do Your Clients Hold The Right CDL License?

Learn about the various classes of CDL Licenses and the industries that are impacted by...

Integrated Content & Communications: A Key Business Issue For Insurers

Insurers are renewing their focus on top line growth, and many are learning that growth...

High Risk Insurance Coverage in the E&S Market

Experts discuss market conditions, trends and projected growth in a rapidly changing niche.

Top E-Signature Security Requirements

This white paper covers the most important security features to look for when evaluating e-signatures...

EPLI Programs Crafted Just For Your Clients

Bring us your restaurant clients, associations and other groups and we’ll help you win more...

Is It Time To Step Up And Own An Agency?

Download this eBook for insight on how to determine if owning an agency is right...

Claims - The Good The Bad And The Ugly

Fraudulent claims cost the industry and the public thousands of dollars in losses. This article...

Leveraging BI for Improved Claims Performance and Results

If claims organizations do not avail themselves of the latest business intelligence (BI) tools, they...

Top 10 Legal Requirements for E-Signatures in Insurance

Want to make sure you’ve covered all your bases when adopting e-signatures? Learn how to...

Looking for Markets?

Search Kirschner’s Insurance Directory to help service your hard to place risks.

497 Risk Categories | 70,000 P&C Insurance Markets

kirschners
Specialty Markets Insight eNewsletter

Receive updates and analyses on hard to place and challenging coverages. Sign Up Now!

Advertisement. Closing in 15 seconds.