S. Korea Okays ERC Reinsurance License

S. Korea Okays ERC Reinsurance License

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

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

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

"We are pleased with this achievement. Securing this license is the result of cultivating customer relationships in the region and attaining a high level of market expertise. With this license, we are fully entitled to operate in this large Asian market, which only recently was opened to foreign reinsurance companies," said Rick Smith, president and chief executive officer of ERC's Global Property and Casualty unit.

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

"We wrote about $3 million when we started operating in South Korea through our Singapore office in 1998, achieving dramatic growth with $20 million in 2002," said Grant Robson, President and CEO of ERC's Asia Pacific operations. "We are confident we'll reach our 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 in the world with direct market premium of approximately $14.1 billion, and total property-casualty reinsurance purchased from this market amounts to about $1.6 billion.

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

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

ERC will partner with its direct clients and the local reinsurer, Korean Re, and assist them in introducing casualty products to the market. ERC established a representative office in Seoul in 1999, with along-term objective of applying for a full license. As a representative office is it not allowed to write business in its own right.

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

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

Employers Reinsurance Corporation bills itself as the world's fourth 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.