Applying the strategy

At Catlin we work to a set of standard operating principles. Our success as a company stems from the strength of these principles combined with our flexible business strategy.

A fuller explanation about how we run our business and deliver our strategy is available on the page describing how we operate.

Profitable growth and shareholder value

Forward-looking approach

Catlin is building a business for the future. The Group seeks to concentrate on business activities that will produce long-term, sustainable earnings across underwriting cycles.

Attractive return on capital

Recognising that annual returns can vary greatly based on market conditions and the occurrence of catastrophic losses, Catlin aims to achieve a weighted average return on equity that is ten percentage points greater than the risk-free rate over a ten-year cycle.

Realistic and flexible approach to underwriting cycles

Catlin seeks to maximise profits through all phases of an underwriting cycle through superior portfolio management and taking advantage of the diverse opportunities supplied by the Group’s broad distribution network.

Focus on gross underwriting profits

Catlin expects each class of business to produce a gross profit in the aggregate through an underwriting cycle.

Diversification by class and distribution

Catlin actively explores new classes of business and geographic markets to diversify its risk portfolio and to enlarge its core earnings base.

Superior structure and controls

Consistent reserving philosophy

The Group sets loss reserves consistently, expecting to make a small release in most years.

An underwriting and corporate structure which maximises scope for earnings growth and provides flexibility

Catlin’s underwriting hubs provide access to diversified business opportunities in the world’s major markets. These six hubs – London/UK, Bermuda, US, Asia Pacific, Europe and Canada – provide Catlin-owned insurance carriers with flows of business, much of which would otherwise be placed with local insurers or reinsurers. This structure also allows the Group to strengthen relationships with local clients and retail brokers.

Emphasis on capital preservation

Catlin seeks to underwrite business that presents the potential of excellent returns against the amount of risk assumed. The Group actively looks for new classes of business which offer the potential of underwriting profit and, where possible, are uncorrelated to the existing portfolio. Catlin uses sophisticated portfolio modelling tools to manage actively its business mix. Catlin uses third-party reinsurance both to protect its capital base and to increase underwriting capacity. Similarly, the Group maintains a rigorously controlled investment portfolio with a goal of producing optimum returns without assuming undue levels of risk.

Continuous improvement of technical capabilities

Catlin recognises that ongoing investment in people, systems, processes and controls is essential to compete effectively.

Relationships and communications

Maximisation of relationships with clients and brokers

Catlin aims to support core clients whose business is profitable over the long term, both during periods of constrained market capacity and after a large loss, recognising that lasting relationships should not be broken due to short-term considerations. The Group works to provide innovative solutions to clients’ needs and prompt and reliable claims service. It aims to provide brokers with consistent support and easy access.

A culture that stresses open communication and accountability for actions

Catlin has developed a corporate culture that gives its people significant responsibility for business decisions, supported by a comprehensive control framework. Catlin people are encouraged to think and act like owners and to work in teams whenever possible.

Corporate responsibility

Just as Catlin expects its people to take responsibility for their decisions, Catlin strives to maintain high standards of corporate responsibility. The Group’s operations have social, environmental and ethical implications. Catlin’s corporate behaviour must reflect its responsibilities not only to shareholders and clients, but to the communities in which it operates.