American Re consolidates Canadian operation

The Canadian operation of American Re has been rationalized with the underwriting and client service functions shifted to the group’s Princeton, New Jersey-based headquarters. The operational change, which will see the company close its Montreal office with Toronto remaining to handle claims settlement and other administrative duties, will take effect this September, confirms John Gallagher, vice president of Munich-American RiskPartners.

Munich-American Risk Partners operates as a division of American Re, which in turn is a member of the Munich Re Group. Munich Re began restructuring its troubled American Re operation around the beginning of this year. The decision to consolidate the operational structure of the company’s Canadian unit was based on this efficiency drive, Gallagher says. A new chief agent will be appointed shortly for Canada, he adds, and in that respect the America Re and Munich-American RiskPartners will continue to operate in the local marketplace.

America Re wrote about $33 million in earned premiums for 2001 and reported an underwriting loss of $4.3 million. The bulk of the operation’s business is alternative risk solutions, notes Gallagher, which is regarded to be profitable. “Historically, this market [alternative risk solutions] has been profitable, and based on the current environment, we expect that it will grow further.” In a press statement, Munich-American RiskPartners’ president Anthony Kuczinski says, “we assure our clients that Munich-American RiskPartners remains committed to the Canadian marketplace and that they will continue to receive the highest quality service.”

6www.canadianunderwriter.ca CANADIAN UNDERWRITER /SEPTEMBER 2002