Corporate Overview
On 9 November 2006 a scheme of arrangement became effective under which Omega Insurance Holdings Limited, a Bermuda company (with registered no. EC38802), became the holding company of the Omega Group. Shareholders in Omega Underwriting Holdings PLC, the previous holding company of the Omega Group and now re-registered as Omega Underwriting Holdings Limited and a wholly-owned subsidiary of Omega Insurance Holdings Limited, received an equal number of shares in Omega Insurance Holdings Limited which was admitted to trading on the AIM market of the London Stock Exchange
(symbol "OIH"), also on 9 November 2006.
Omega Insurance Holdings Limited is the holding company for businesses in Bermuda, United States, London and Cologne. The longest established is Omega Underwriting Agents Limited, a London based Lloyd's Managing Agent for Syndicate 958, which has produced an underwriting profit in every closed year of account since 1980. A majority of the Omega Group’s premium income is, and has historically been, derived from its business operations in the United States (in 2007: 61.6%).
All the companies in the Group focus on predominantly short-tail property insurance and reinsurance, insuring small to medium-sized insureds and reinsuring smaller insurance companies.
Omega Operating Group Structure 2008 (PDF)
The main operating units within the Group are:
- Omega Specialty Insurance Company Limited (“Omega Specialty”), a Bermudian Class 3 insurance company rated “A-” (Excellent) by AM Best;
- Omega Underwriting Agents Limited (“Omega Underwriting Agents”), a Lloyd’s managing agent, managing Syndicate 958 which is rated “A” (Excellent) by AM Best;
- Omega US Insurance, Inc., a US insurance company licensed to write surplus lines business in a number of states and rated “A-” (Excellent) by AM Best;
- Omega Europe GmbH, (“Omega Europe”), a company based in Cologne dedicated to servicing and developing our European and international reinsurance business; and
- Omega Dedicated Limited (“Omega Dedicated”), a Lloyd’s corporate member supplying capital exclusively to Syndicate 958.
Composition of the Portfolio
The Omega Group’s portfolio has an inherent balance created by a diversity of both geographic exposure and business class. The exact balance is adjusted dependent on rate strength in a particular niche or field at any one time, considered against our maximum exposures. The composition of the portfolio at the end of 2007 can be best outlined as follows:
Overview of activities
Non-marine Property Insurance
(25 per cent of gross premiums written in 2007):
The account remains core to Omega and is comprised of predominantly low value, commercial risks. It is written through a series of managing agents with whom we have long standing relationships. The regionalised nature of these agents adds to the inherent diversification within the book.
Property Catastrophe Treaty Reinsurance
(26 per cent of gross premiums written in 2007):
The focus of this account in which Omega is an established underwriter is the reinsurance of smaller to medium sized insurance companies.
Property Per Risk Treaty Reinsurance
(6 per cent of gross premiums written in 2007):
This account is written with a methodology and approach consistent with that employed on the Property Catastrophe Treaty Reinsurance account, with a similar bias towards the US and reinsuring smaller to medium sized insurers.
Professional Indemnity Insurance
(6 per cent of gross premiums written in 2007):
Omega’s account focused predominantly on small assureds in the US.
Motor Insurance and Reinsurance
(6 per cent of gross premiums written in 2007):
The majority of the insurance element of the account is vehicle physical damage cover in the US and the reinsurance element is comprised of reinsurances of European and UK motor insurers, covering both physical damage and liability.
Marine Insurance and Reinsurance
(18 per cent of gross premiums written in 2007):
The account is comprised principally of reinsurances of the direct marine accounts of insurers, on both an excess loss basis and proportional basis. In 2007 the account was further diversified by the addition of the new energy insurance account covering both on and offshore energy exposures.
Liability Insurance and Reinsurance
(8 per cent of gross premiums written in 2007):
Most of the liability insurance underwritten by Omega is the restricted coverage given in conjunction with the writing of commercial property insurances. The reinsurances are of European and UK general liability insurers on a risk excess basis.
Other
(5 per cent of gross premiums written in 2007):
Classes categorised as “other” include Omega’s underwriting, on either an insurance or reinsurance basis, of satellites, aviation, war, fine art, personal accident and kidnap and ransom. Omega underwrites these classes on an opportunistic basis and therefore expands and contracts the individual lines of business according to the market conditions.
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