Catlin Group Limited, international specialty property and casualty insurer and reinsurer, announced that Catlin Re Switzerland Ltd. has received approval from the Swiss Financial Market Supervisory Authority (FINMA) to operate as a reinsurance company.
Catlin Re Switzerland will be capitalized with about $1.1 billion.
Standard & Poor's Ratings Services said last month that it expects to assign a long-term financial strength rating of "A" to Catlin Re Switzerland as a core subsidiary of the Catlin Group, subject to capitalization of the company and receipt of all necessary regulatory approvals.
The formation of Catlin Re Switzerland is a major development in the Catlin Group's international expansion and distribution strategy, the company said, noting that it will underwrite property and other classes of specialty reinsurance for European ceding companies, as well as trade credit surety and political risk reinsurance globally.
Catlin Re Switzerland will expand its portfolio of European treaty reinsurance business as market conditions justify, building on the existing book of reinsurance business that has been developed and underwritten by Catlin's European offices over the past seven years, the company said.
Peter Schmidt, chief executive of Catlin Re Switzerland, said, "The establishment of Catlin Re Switzerland will significantly expand the Catlin Group's presence in the European marketplace. Our ambition is to build Catlin Re Switzerland over time to become a leading European specialty reinsurer."
Catlin Group Limited, headquartered in Bermuda, writes more than 30 classes of business worldwide through six underwriting hubs. Gross premiums written in 2009 amounted for more than $3.7 billion.
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