Ironshore hires Sussman to grow political risk
BERMUDIAN insurer Ironshore has unveiled plans to expand its political risk and other trade-related insurance offerings outside of Lloyd’s.
The firm has appointed the former head of XL Capital’s financial lines, Daniel Sussman, who will be based in New York City, as president of Ironshore’s political risk division, reporting to Paul Giordano, executive vice president and general counsel of Ironshore.
Ironshore’s extended capabilities for political risk lines in the US build upon its existing capability in the UK offered through Pembroke, its Lloyd’s Managing Agency. Sussman will be responsible for expanding Ironshore’s political risk business outside of Lloyd’s, including development of a broad range of trade-related insurance coverages, such as international trade-in-goods programmes.
“This expansion strategy broadens the established Pembroke footprint of providing selective political risk coverages, and strengthens Ironshore’s overall product capabilities in the US to meet the global demand for new, high quality capacity in this specialty sector of the marketplace,” explained Giordano.
Previously, Sussman was chief executive of XL Capital’s financial lines segment, overseeing specialty and bespoke insurance products that included political risk insurance and related coverages.
Giordano added: “Sussman’s track record and expertise in developing new product lines for trade-related domestic and cross-border insurance programmes serving corporations and financial institutions make him ideally suited to lead this initiative.”
Ironshore’s intention to widen its political risk insurance offering comes at a time when rival insurers are posting losses in the segment.
Axis Capital’s 2009 fourth quarter insurance underwriting profit dropped 11% to $86m due to an increase in credit and political risk losses during the quarter, including a reserving provision related to the Blue City project in Oman, while Beazley’s full-year profit of £100.7m included political risk losses of £33m, resulting from exposure to trade finance losses and failed financial institutions in developing economies (Insuranceday.com, Feb 9).
