Omega US Insurance, Inc. (“Omega US”) is a wholly owned subsidiary of the Omega Group and is the Group’s US underwriting platform. Based in Schaumburg, Illinois, Omega US is incorporated and licensed in the state of Delaware and underwrites property and casualty business on an excess & surplus lines basis throughout the US. Excess & surplus lines are specialist risks which fall outside the standard criteria used by US domestic insurers. To date Omega US has been granted eligibility to write business in 42 US jurisdictions, and continues to seek eligibility in the remaining US jurisdictions.
Omega US was capitalised at US$50 million from the proceeds of a share placing conducted by Omega Group in October 2006 and is rated A– (Excellent) by A.M. Best. As for Omega Specialty this rating is under review by A.M. Best pending clarity following the SGM.
Underwriting Focus
The Company commenced underwriting in the first quarter of 2008 and is developing a portfolio of business similar in nature to the direct property account written by Syndicate 958. It targets small and mediumsized commercial business and seeks to underwrite in those geographic areas in the US where it avoids clashing with Syndicate 958’s property catastrophe account. It is intended that Omega US complement Syndicate 958, by sourcing business through existing agents and distribution channels that would not ordinarily be offered to Syndicate 958.
2009 Developments
During 2009, Omega US continued to make steady progress. Gross premiums grew to US$36.2 million (2008: US$10.8 million). Achievements during 2009 include:
- Obtaining licences to write excess and surplus lines business in Minnesota and New Mexico;
- Signing agreements with 3 new general agents. This brings the number of signed agreements with general agents to 34; and we expect to appoint more throughout 2010;
- Continuing to build the operational infrastructure of the business including bringing the finance function in-house;
- Recruiting a Chief Financial Officer together with additional underwriting and accounting personnel, bringing the total headcount to 11 full-time employees.
Gross Premiums Written by Class (%)
| 2009: |
55.5% |
|
0.1% |
|
44.4% |
|
|
|
|
|
|
|
Non-marine property insurance |
|
Motor insurance and reinsurance |
|
Liability insurance and reinsurance |
| 2008: |
48.0% |
|
0.5% |
|
51.5% |