Hendrick said Vantage wrote “right on or just above our plan” this year on real estate disasters and what he describes as specialty reinsurance, spanning lines including navy, aviation, crops, satellites and assets by risk.
Vantage launched in December 2020 and Hendrick had said The insurer in January of this year that the 1.1 reinsurance renewals 2021 had reached but did not exceed the expectations of the start-up.
And in the last interview for #MonthReinsurance, Hendrick said: “The rest of the year has met our expectations, but it was not what we were hoping to get in terms of correcting and getting returns to the levels we think they need to be for. that we can truly deploy fully. “
He added: “In reinsurance, we think the opportunities are right but not quite where they need to be for returns.”
Hendrick said that “recent activity is putting additional pressure on prices, particularly around the real estate disaster space.”
This year has seen events such as freezing in Texas, wildfires and Hurricane Ida. “Ida parts one and two are two obviously related but completely different events,” said Hendrick.
The recent frequency of small to medium-sized feline events should lead to a price overhaul, Hendrick suggested.
“We are seeing a strong discussion about where the price points are set to attract capacity going forward into these middle and lower layers of the property disaster,” said Hendrick. “We expect a higher rate. “
Looking back, Vantage’s ILS capabilities are led by Chris McKeown, who was previously vice president of fund manager ILS New Ocean Capital Management, which he founded in 2013.
Hendrick commented that “the retro market hasn’t moved as much as we would like, but it has certainly moved enough to be of interest to us”. Vantage targets “just above” companies where most tend to buy.
“I don’t see us as a fund manager – I think the space is pretty full and dominated by very large and successful players – but I see us building tailor-made vehicles that investors interested in cat risk want to take a particular slug will want to come and work with Vantage, ”he said.
No more capital available for Vantage
Vantage was launched with $ 1 billion in equity invested by private equity firms The Carlyle Group and Hellman & Friedman, working with management, with the potential to increase their investment as growth opportunities arise. present.
“There is more capital available from them as we continue to demonstrate the opportunities and meet the expectations we all collectively have,” commented Hendrick.
“So we see the possibility of having more capital to work on over the next year. We will have to see how the market evolves, obviously all of this will happen in the coming months in terms of reinsurance.
Vantage took longer to build its insurance portfolio due to the time it takes to get regulatory approvals for acquisitions. Hendrick noted that Vantage sees “very strong rate opportunities” in insurance, particularly in the long tail lines.
The company continued to announce new hires and new hires. Hendrick cited as examples the hiring of Megan Kempe to focus on emerging risks and Jason Lamonica as construction manager, both from Axa XL, the company Hendrick ran before joining Vantage.
“You will see us continue to grow, with the awards,” said Hendrick. “The 2022 game plan will be to continue to perform well in the real estate and specialty chat markets and to continue to develop these other capabilities.”
During the interview, Hendrick also discussed his recent participation in a White House discussion on cybersecurity and his thoughts on the evolution of the cybermarket.