The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

A Bahamian insurer yesterday said it had enjoyed top-line growth of “over 20 per cent” in 2012, suggesting that its strategy of focusing on large accounts with “good quality risks” was paying off.

Terence Rollins, Security & General’s general manager, told Tribune Business that achieving such growth in gross written premium (GWP) was “pretty damn good”, given the relatively flat economic environment.

The rate of GWP increase had exceeded the rise in Security & General’s claims costs, with Mr Rollins adding that the property and casualty underwriter had yet to lose “one account” to the aggressive premium price undercutting campaign launched by Netherlands Antilles General Insurance Company (NAGICO). (see other article on Page 1B)

“We’ve grown quite a bit last year,” Mr Rollins told Tribune Business of Security & General’s 2012 performance. “We grew over 20 per cent last year on gross written premium.”

Pointing out that, in common with all other companies, Security & General’s 2012 financials had yet to be audited, Mr Rollins nevertheless added: “We’re up over 20 per cent on last year [2011], which in a stagnant economy is pretty damn good, bearing in mind that claims costs have not gone up as much as gross written premium.

“We are focusing on good quality risks that are well managed, and yield us good quality returns.”

Unlike rivals such as Bahamas First, Mr Rollins said Security & General had suffered no impact from NAGICO’s bid to gain market share by undercutting prevailing premium prices by up to 20 per cent or more.

Disclosing to Tribune Business that NAGICO did not appear interested in underwriting motor/auto business in the Bahamian market, Mr Rollins said reports to-date indicated it was focusing on the property and casualty segment - largely residential homes and small commercial.

This meant that NAGICO was not directly competing with the larger property and casualty accounts that Security & General was targeting.

“I can’t point to a single account where NAGICO has come in and taken one from us,” Mr Rollins said. “I can’t recall a broker coming into me and saying: ‘They’ve got a wonderful quote from NAGICO, you guys need to do something.

“I can’t point to a single one. So far the coast is clear.”

The evidence to-date suggested that NAGICO was “going after small retail business”, and Mr Rollins told Tribune Business: “We’re more into the larger accounts here, and I don’t think they’ve [NAGICO] got the capacity or the appetite for the accounts we’re typically writing.

“From what I gather from others, they’re quite keen to do domestic business, homes and condos and small mid-market stuff. I’m surprised we’ve not come across them, but I don’t think they’re into these larger account areas.”

Mr Rollins said the underwriting of residential property and casualty risks was one of Bahamas First’s key markets, which was why it was likely seeing more of NAGICO.

“We don’t really dabble in them,” the Security & General general manager said of residential houses. “We’d like to have a bigger housing portfolio, but presently we’re not as strong as Bahamas First and others.”

Noting that reinsurance support was vital in the Bahamian market, Mr Rollins said reinsurers deployed capital in markets where they could generate the best returns.

Noting that Security & General employed a similar strategy, Mr Rollins said: “We try to write good quality accounts that are reasonably well managed, where we can enjoy good returns.”