Tiernan: 'We intend to keep an iron grip on underwriting'

By Scott Vincent

March 13 - (The Insurer) - Lloyd’s chief of markets Patrick Tiernan has targeted increased relevance in the reinsurance space through a new strategy, which he told The Insurer TV will “work for the future”.

In an interview ahead of today’s market message announcement, Tiernan said the market’s oversight strategy would be focused on maintaining discipline and maintaining the momentum established over the past couple of years without being distracted by short-term noise.

And he highlighted reinsurance as one of the growth opportunities for the Lloyd’s market over the next three years, with the market now positioned to be accretive to reinsurance strategies going forward.

“We've been quietly putting together a reinsurance strategy that we think works for the future, rather than trying to replicate the past,” he said.

“We need to build an insurance platform that's attractive to the future, and London Bridge 2 is a key part of that.”

“We have room at higher attachment points from a reinsurance in the portfolio, particularly if it is structured in such a way that arrives at Lloyd's attractive terms.”

More broadly, Tiernan said the Lloyd’s portfolio has the opportunity to broaden into new lines of business that it has previously not dominated, including credit.

“Credit as a line of business in Lloyd's is a longer-term play that needs to be cognizant of, but not completely driven by macroeconomic or geopolitical factors,” he said.

“Having an AA- balance sheet opens it up as a line of business for us, and we've done a lot of work over the last two years to ensure that we have appetites, structures, controls and the expertise that allow people to come into us and trade on the basis that they want to.”