09 Sep Australian aviation market update
Swiss Re announce their withdrawal from the Australian aviation market
Last month Swiss Re (second largest capacity provider in Australia) abruptly announced it is withdrawing from the aviation market here in Australia. This follows the recent exit of Allianz Aviation and AIG Aviation, leaving “a huge hole” in the local market.
Without Swiss Re Corporate Solutions, brokers are saying QBE and Lloyd’s would be the only significant remaining capacity providers.
With Lloyd’s also pulling back due to reduced capacity, there may be people running their aviation-related businesses without any insurance.
A Swiss Re Corporate Solutions spokesman told an insurance news source that a strategic review was taking place with the aim of improving profitability, but that “different options” were still being considered.
In 2015 Swiss Re Corporate Solutions acquired the aviation business of Assetinsure. Swiss Re warned at the end of July that Corporate Solutions would be “actively reducing risk exposures in specific lines” after reporting a net loss of $US403 million ($594 million) and a combined ratio of 132.8% in the first six months of this year.
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