We continue to focus on frequency oriented business. Our existing underwriting portfolio reflects this with a split of gross premium written of 96% in frequency business and 4% in severity business. We recently wrote two new significant nonstandard automobile contracts with private passenger automobile writers in the United States. The typical nonstandard automobile policyholder purchases very low limits of liability in order to meet state financial responsibility requirements and typically does not purchase physical damage protections for their own vehicle. These opportunities put our underwriter model of supporting these specialists who are experts in their field and finding areas of the market that are experiencing some dislocation.
One of the contracts is for a Florida provider. The Florida private passenger automobile market has suffered losses in the recent past and as a result significant price increases are now being implemented. We believe this new partner is well positioned to take advantage of these market dislocations. Our other new partner is a regional writer with the concentration in Louisiana and several other states.
Our property cash retro portfolio did not change during the third quarter. US hurricane season is traditionally a less active quarter for new property cat retro accounts. We do not believe we suffered any losses from the US storm season to date nor have we experienced any adverse developments from earthquake losses reported in prior periods.
Our maximum catastrophe exposure is $66 million for any one event and $94 million for our maximum aggregate exposures to all events. These exposures are unchanged from the second quarter of 2011. As a reminder, we always state our catastrophe aggregates as the absolute amount of limit we have at risk, plus any reinstatement premiums.We are continuing to pursue appropriate opportunities to grow our European business through our Greenlight Reinsurance Ireland subsidiary and have a number of productive conversations underway. We are seeking to build partnerships with small and medium-sized insurance enterprises that need a reliable capital partner. These are typically specialist insurers who recognize that when Sovereignty II regulations are implemented introducing a new approach to risk-based capital, they want to have a partner who can provide quick access to capital. While we are only one year into the process of building our presence in Europe, we are encouraged by the acceptance of our model and the identified need in the marketplace. Read the rest of this transcript for free on seekingalpha.com
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV