The Group Executive Committee and the Board of Directors actively seek assurance of the effectiveness of the risk and control framework.
The Group Head of Internal Audit directs an internal audit programme across all Group operations and subsidiaries. The programme is designed to provide reasonable assurance that the Group’s controls and procedures are able to contain risks within acceptable limits.
Catlin is committed to full compliance with local regulatory and capital requirements in all the relevant jurisdictions where we operate.
Catlin is working with the Association of Bermuda Insurers and Reinsurers as the Bermuda Monetary Authority (‘BMA’) progresses to an enhanced risk-based capital approach. Catlin is domiciled in Bermuda and in late 2009 delivered a presentation on the Group-wide risk programme to a Supervisors’ College convened by the BMA.
The Catlin Syndicate at Lloyd’s (Syndicate 2003) and Catlin UK (Catlin Insurance Company (UK) Ltd.) will be subject to proposed Solvency II regulatory framework from October 2012. Work is in progress to meet these requirements. As part of this work, Catlin is actively participating in market working groups whose goals are to ensure compliance with the new regulatory regime when it is launched.
During 2010 the Group worked closely with the Swiss Financial Market Supervisory Authority (‘FINMA’) in meeting the requirements under the Swiss Solvency Test in the establishment of Catlin Re Switzerland.
Rating agency assessments
Catlin’s major underwriting units have been assigned financial strength ratings of ‘A’ (Excellent) by A.M. Best and ‘A’ (Strong) by Standard & Poor’s. These superior ratings reflect these agencies’ confidence in the Group’s risk management programme and level of capital.
Standard & Poor's reviewed the Group’s risk management programme in 2010. Standard & Poor’s rated Catlin’s Enterprise Risk Management programme as ‘Strong’, ranking Catlin amongst the top quartile of insurers whose ERM programmes have been reviewed.