Insurance market signs deal as part of Chinese state visit
Lloyd’s has signed a deal with China Taiping Insurance to forge closer links between the two nation’s insurance markets.
The memorandum of understanding with state-owned China Taiping will commit both parties to work closely to develop the Chinese and global insurance markets.
The deal also lets Taiping Reinsurance Company set up a Lloyd’s syndicate and Taiping Reinsurance Brokers become a Lloyd’s broker.
The deal co-incides with Chinese president Xi Jinping’s state visit to the UK.
Lloyd’s chairman John Nelson signed the memorandum with China Taiping chairman Wang Bin.
Nelson said: “I am delighted to welcome China Taiping Insurance to Lloyd’s today and pledge our commitment to building a strong and lasting business relationship in the future.
“For centuries Lloyd’s has been the global hub for specialist insurance and reinsurance and by seeking out new business partners and further internationalising our capital base, our aim is to reinforce our global position.”
Wang said: “The establishment of the cooperative relationship with Lloyds’ is a significant strategy for China Taiping to elevate its internalisation and build its industrial chain, strengthen its reinsurance business capability, and expand our overseas business network.”
Insured Tianjin blast losses $500m and rising
Final losses could be as high as $3.3bn, says Guy Carpenter
Total public (re)insurance loss estimates from the August Tianjin port blasts so far are nearly $500m.
But the $499.8m figure is likely to be a fraction of the total losses from the event, with more western (re)insurers set to declare losses.
Total claims from the explosions at the Chinese port could top $3.3bn and are set to be one of the largest man-made disasters in Asia, according to a Guy Carpenter report.
The fireball and shock wave from the explosions blasted shipping containers, incinerated vehicles and destroyed warehouses, production facilities and dormitories.
Most claims likely to be picked up by Chinese insurers, though none have released public loss estimates.
It also hit the nearby Donghai Road railway station and blew out windows within residential structures for several kilometres.
Ace has reported a pre-tax loss of $22m from the explosion.
Allied World expects net catastrophe losses of $28.9m, while Aspen estimates losses of $30m for the explosion, net of reinsurance and reinstatement premium.
Validus Re is facing losses of $32.7m for the explosion, while Validus’ Talbot Underwriting acquisition expects claims of $11.2m for the same disaster.
Meanwhile, XL Group has estimated it will lose around $100m in claims, with 30% of this loss to hit its insurance arm and the remainder its reinsurance segment.
Zurich estimates aggregate losses of around $275m.
Allianz said in August that it expects losses and is still working out its potential exposure.
The firm’s Chinese general insurance arm has exposures around property and marine clients.
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