However, partial losses of all categories (runway excursions, ingestions, etc.) remained high impairing insurers’ results.
In an insurance market that has not yet seen sufficient changes to restore satisfactory margins, we are carrying forward our Airlines underwriting philosophy summarized as follows: continue our de-risking approach where necessary and focus on premium quality and appropriate contribution from all insureds towards a “market” loss, whilst reinforcing our broker and customer relationship management and finally, to transition ourselves from alternative Lead market to Lead market whilst developing new products and services to support our Lead strategy.
Chief Airlines Underwriter
& Sales Development
In 2017, in an attractive Aerospace market seeing falling rating and premium levels, we have succeeded to expand our Aerospace book through close liaison with our clients and selective quoting and commitment.
The outlook for the 2018 aerospace and defence industry is positive due to rising commercial aircraft deliveries and higher defence spending. Manufacturers are well positioned to meet production rate increases yet risk of supply chain disruptions remains.
As with other business segments we have clients with differing requirements from our industry. We have the short term, opportunist buyers in addition to those who value longevity and loyalty with both requiring competitive terms, conditions and pricing. We are very pleased to support both these buying strategies and will continue to manage these by careful and considered line size and risk selection.
Going forward our desire is to develop the account with risks having a track record of lower claims incidence balanced with a strong position on the major risks which make up the majority of premium spend. Our overall view is to support high quality risks whatever the perceived criticality with the ambition of long term profitability which will come from such risks. Despite some Airframe and Engine manufacturers having higher loss ratios over recent years, positions need to be taken on these for market presence and reputation. These are a major part of our account as we seek to take an influential and contributory position in the market.
Chief Aerospace Underwriter
Whereas helicopter commercial activity is still lagging behind, the business aviation segment confirms its recovery, against the backdrop, however, of private jet rental market consolidation. Likewise, the professional drone segment continues on its strong growth path, while restructuring in order to be able to respond better to the wide range of applications requested by its clients.
These developments definitely represent opportunities for La Réunion Aérienne, as the historical leader of the French general aviation market with a strong and recognised expertise, making it a preferred partner worldwide.
Our team, one of the main teams in the market, and its new leadership, have the ambition to offer you the best service, i.e. comprehensive products and solutions tailored to your needs and permanent support in managing and developing your general aviation business, including through long term partnerships.
Portfolio Manager General Aviation
The space insurance market is currently facing huge challenges as a result of the conjunction between the in-depth transformation of its risks (stagnation/drop in geostationary applications, constellations on the rise, heterogeneous risk profiles, non- proportional risks, industry practices of the launch operators and the manufacturers, etc.) and the fierce competition between insurers. As a consequence market equilibria are weakened further and the market is more volatile than ever.
However, La Réunion Spatiale embraces all these challenges as opportunities in pursuing its long term ambitions. In doing so, we maintain our underwriting philosophy, whose cornerstones are technical knowledge, intelligent use of historical databases, attention to the needs expressed by our clients and experience gained in contract design, negotiation and complex claims since 1983 (1995 in the case of the space CUO).
The results we have been achieving for nearly 25 years are the fruit of an individual analysis of each risk and each risk segment, as well as of the adjustment of the level of our liabilities in order to ensure a balanced portfolio overall.
The implementation of this consistent approach in the long run proved largely instrumental in mitigating the impact of the volatility typical of a space risk portfolio and in delivering excellent results to the partners of La Réunion Spatiale over the cycles.