Beazley and Korean Re announced a partnership to develop business together and to set up a special purpose syndicate at Lloyd’s, Syndicate 6050.
“We hope this collaboration will enable Beazley to write more business in Asia and enable Korean Re to develop a track record at Lloyd’s,” Beazley CEO Andrew Horton said in a statement summarizing the benefits and specifics of the deal.
Under the agreement, Syndicate 6050 will write a whole account quota share of Beazley Syndicates 623 and 2623, and Beazley will take a quota share of Korean Re’s commercial lines book.
This equates to a reinsurance swap of approximately $20 million in gross premium between Beazley and Korean Re.
The agreement envisions Beazley embedding products with Korean Re to distribute through their domestic distribution channels. Furthermore, it will provide Korean Re access to the Lloyd’s market.
In addition to the quota-share agreement, the two organizations will implement a program of employee secondments (temporary assignments) to help build experience in their respective markets along with exploring joint product development opportunities.
Horton noted that Korean Re is a top ten global reinsurer, the dominant reinsurer in South Korea, calling the company an excellent partner for distributing Beazley products in Asia.
Korean Re CEO Jong-Gyu Won said his company expects the partnership “to create exciting synergies for the mutual growth of [the] two companies based on Beazley’s extensive experiences in the international market and Korean Re’s longstanding presence and expertise in Asia.”