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BMS opens New York office

Video: Carl Beardmore discusses the opening of the New York office – which is key for BMS and its continued expansion of the US platform.

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BMS opens New York office

Leading independent broker BMS today announces it has opened an office in New York City. The Park Avenue office will be the base of Group CEO, Carl Beardmore, who will now be spending the majority of his time in the United States. Larry Cantwell, Executive Vice President, will be the lead producer.

This development sees BMS further strengthen its position in North America where it continues to grow its reinsurance business. Over the past 18 months it has invested in a number of key personnel both in the UK and US, particularly in its modelling and analytics offering. BMS is also in the process of moving the servicing of all reinsurance accounts from London to Minneapolis.

Carl Beardmore commented:

Opening an office in Manhattan is vital to the continued expansion of our US platform to complement our strong London position and build a truly unified reinsurance platform. The new office will primarily be a production centre, led by industry veteran Larry Cantwell. However, it is also designed to be a hub for all our markets, and any staff or clients who want to use the facilities will be made very welcome.

For me, the most important thing is that we demonstrate our continued commitment to our clients. We have invested heavily in our US offering, both in our modelling and analytics capabilities, and we are in the process of moving the servicing of all reinsurance accounts from London to Minneapolis. Everything we do is for our clients’ benefit, and to make it easier for them to do business with us, which is why I’m moving to the US and why we’ve opened this impressive new office in New York”.

Baden Baden – Loss reporting debate

Jonathan Morris, Managing Director BMS Retro Team, raised the issue of delayed loss reporting on accurate pricing during an interview with Intelligent Insurer Magazine.

Jonathan discussed how the ‘loss reporting creep’ that is experienced after larger catastrophes, such as the Japanese earthquake, make it difficult to finalise pricing. When full loss figures are not reported until after the renewal season is completed, it can cause numerous problems and is likely to cause global reinsurance premiums to rise in 2012.

Click here for the full article page 2.

Pre-Baden Baden Review

Jonathan Morris, Managing Director of the BMS Retro team, considers the hot topics for debate at the upcoming Baden Baden Meeting.

I have been going to Baden Baden for the last four years and although relatively internationally focused, it has become an increasing important conference where after the early discussions of Monte Carlo Rendez-Vous; we finally get down to business and focus on client/contract specific topics. This concentration of market players in one location all with a focus on the renewal season ahead, to my mind makes Baden the real beginning of the new season.

BMS Re will be represented this year by myself and Georgina Glander. We will be hosting meetings between our clients and their markets. We also plan to see other existing and potential retro markets form Europe, Bermuda, Barbados and Scandinavia. These markets include hedge funds as well as traditional reinsurance.

I think the key discussions at Baden Baden will be focused around the poor results relating to the sizeable losses experienced in New Zealand and Japan earlier in the year and how these losses will impact throughout the market and potentially drive change. It is obvious that it will take more than one year to recoup such exceptional losses and to get clients’ portfolios back into the black.

Capacity is always a hot topic and this year talk will be around whether traditional or less-traditional forms of capacity emerging from capital-based market will be used to complete programs. These new players in the retro scene are good for clients, as a buyer they need a mix of traditional and capital markets to try to smooth out any volatility in pricing each year. There is an increase in choice for clients overall, be it Insurance linked securities (ILS), Industry Loss Warranties (ILW), traditional cover or capital markets.

In terms of the retrocessional market, it is early days regarding 1/1 renewals, but Baden will set the scene for the latter weeks in December when the decisions are made. Our biggest competitors are ‘net retentions’ and deductibles. For me, if retro reinsurance is too expensive; people will buy less of it and stay out of the marketplace for longer, which is not what we want.

I foresee loss reporting from cedants as growing concern for reinsurers and their retro reinsurers. Earthquake losses, in particular, take a long time to gather reliable data from, so both the Japanese earthquake and New Zealand have taken a long time to get accurate loss estimates to base any sort of pricing around.

Overall it is definitely going to be a tough renewal season for all concerned and I believe the above themes will dominate the industry conferences for some time to come.

BMS appoints Philip Campbell to help build its US platform

Independent global broker BMS today announced that Philip Campbell has agreed to join its US based operations as Executive Vice President and member of its US Strategy Board. His responsibilities will include helping BMS to drive the build out of its US reinsurance platform and to develop and deliver customized reinsurance and risk management solutions for Property, Casualty and Speciality insurers.

Philip Campbell commented:

“BMS is uniquely positioned to attract exceptionally talented broking, cat modelling, actuarial and other analytic staff who yearn for an entrepreneurial work environment. I’m excited to be joining my fellow US and UK colleagues.

Together we will build a world-class operating model, develop best in class systems and capabilities and create a culture that will attract the best talent in the industry. We will listen to our clients and prospects, create custom solutions to their needs and challenges and deliver and execute on these solutions with an intense commitment to excellence”.

Carl Beardmore, CEO, added:

“I am delighted that Phil is joining us. His more than 25 years experience designing, placing and executing reinsurance and risk management strategies for some of the most prestigious and successful insurance companies in the US, is exactly the kind of executive talent we are looking to recruit. This marks another important step in the development and extension of our US operations. We are very encouraged about the future of our US initiatives.”

Prior to joining BMS, Campbell was a Managing Director of Guy Carpenter and before that was an Executive Vice President with Aon Benfield and its predecessors for over 25 years, holding a number of key broking and leadership positions. He will be based in the BMS Minneapolis office.