One Canadian specialty insurer has seen an opportunity for growth following the financial crisis of 2008, filing an initial public offering to write general commercial, energy and builder’s risk property coverage.
Ironshore Canada, one of the nation’s major specialty property and casualty insurance carriers, said it has “licensed approvals to provide property coverage products to select, specialty sectors in every Canadian province, except Quebec.”
Formed in December 2006 with more than $1 billion in private-equity capital, sources at Ironshore said the IPO shares will be sold by stockholders rather than the company itself.
“The financial crisis of 2008, which had a material negative impact on several leading U.S. P&C insurers,” states Ironshore, “created a unique opportunity for Ironshore to accelerate its hiring and growth strategy.”
The insurer will offer coverage for general commercial property, with limits of up to $45 million, on a primary, quota share, excess of loss or full value basis. According to Ironshore, the product focus of its general commercial property offering is on property and business interruption exposures and catastrophic risks, including earthquake in British Columbia as well as flood and named windstorm.
Ironshore's energy property insurance has limits of up to $25 million. Coverage includes property damage, machinery breakdown and business interruption. The target market includes refineries, power generation, mining and pipelines.
The builder's risk property offering is aimed at construction projects (including roads, bridges, tunnels and buildings) and mechanical engineering risks for oil and petrochemical facilities, utilities and heavy manufacturing plants.
The builder’s risk coverage has limits of up to $35 million.
Annual gross premiums written have increased from $383.1 million in 2008 to $2 billion in 2013, followed by a rise in first quarter net income to $62.7 million from $42.7 million a year earlier, while revenue increased to $404.7 million from $304 million.
Insurance Business Canada
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