Operating Principles

Underwriting comes first

We are an insurance group and that means we have to place the operational aim of excellent underwriting first. Each risk underwritten must bear scrutiny on an individual basis and as part of our overall portfolio. If we can consistently achieve this, year in year out, we believe this principle above all others will generate a superior return to shareholders.

Maintain a strong balance sheet

At all times, it is our responsibility to ensure we can meet policyholder claims promptly, accurately and completely. Our balance sheet strength should instill a high level of confidence in all stakeholders including shareholders, regulators, rating agencies, counterparties and employees.

Stay nimble

We will underwrite what we think are the good deals and turn down the bad deals. In a hard market, there are lots of good deals and we would expect our business to grow. In a soft market there are fewer good deals and we would expect our business to shrink. To grow and shrink efficiently means staying nimble. We achieve this through a collegiate underwriting approach, by maintaining tight control on overheads and by keeping our eyes open for opportunities.

Manage capital through the cycle

We don’t have a strategic target level of capital. Underwriting opportunities will drive capital, not the other way around. This means that we will carry sufficient capital to support all the deals we like and which meet our return hurdles. We won’t let our capital levels drive how much premium we generate. Granted, this is an unusual approach.