Royalton Capital Investors II, L.P.

CertAsig and Marine Underwriting in Turkish Market
James Grindley - CEO
Istanbul, 28th March 2011
Who is CertAsig?
CertAsig is a specialist, non-life insurance company licensed by the Romanian Insurance Supervisory
Commission (CSA)
Ultimate investors include: European Bank for Reconstruction & Development (EBRD) & European
Investment Fund (EIF)
Our business model is to work primarily with insurance brokers and to target corporate SME clients
CertAsig focuses on ‘more technical’ and specialist insurance products
Avoid chasing market share – a common strategy of ‘top 10’ insurers in Romania
Romania is our core market but expansion to other CEE countries will be considered carefully - Turkey is
already an important market for marine
CertAsig team includes 45 insurance professionals with 6 offices – the team is dedicated to brokers and
CertAsig intends to obtain a rating from a market-respected rating agency
Shareholder structure
• Majority owner (92%) of CertAsig is European private equity fund
Royalton Capital Investors II (“RCI II”), managed by Royalton
• Main investors in RCI II are:
European Bank for Reconstruction & Development (EBRD)
European Investment Fund (EIF)
Various pension funds & other banks
CertAsig Management
Specialist products
Commercial & Industrial Property Insurance (All Risks with optional Business Interruption)
Construction, Plant & Machinery Insurance
Motor CASCO Insurance
Electrical Equipment Insurance
Contractors All Risks (CAR)
Bond Insurance
General Third Party Liability, Employer’s Liability Professional Liabilities
Goods in transit / cargo
Marine Insurance (ships, vessels, hull& machinery, Protection & Indemnity) 
General Aviation Insurance (private jets, helicopters)
Medical mal-practice
Event insurance
Health Insurance
Personal Accident Insurance
Household insurance (buildings, contents & liabilities)
Evolution of portfolio by Gross Written Premium
Marine Insurance is a broker-driven market
 Ship-owners and managers generally use specialist brokers to obtain
 Marine insurance brokers earn commissions between 15% to 25% of
Gross Written Premium
 Leading insurers for Turkish market include:
 Turkish insurers
 Lloyd’s Syndicates & London market
 Russian & European insurers
Marine products and underwriting criteria for Turkey
Underwriting Criteria
 Hull and Machinery for blue
and brown water vessels
 All vessels underwritten on a case-by-case basis; underwriting authority is
never delegated
Protection and Indemnity for
small and medium vessel (big
oil tankers excluded)
 Background / experience of operator, skipper (yacht insurance), shipyard,
ship repairer, are checked before quoting
 Builder’s risks
 Ship repairers’ liability
 Pleasure crafts
 Bucharest and Constanta offices are active in selling marine business
 Core target business is CEE, Turkey, Black Sea-domiciled managers /
operators / owners but all European managed vessels considered
 Pre-entry condition survey is required for vessels older than 10 years,
rendered by underwriters’ agreed surveyors
Port authority / operator liability
 Loss record for previous 3-5 years is required and checked; tighter terms and
conditions or cover refused for business with high loss record
 Cargo / fine art
 Terms and conditions used are similar to London wordings
 Specie and cash in transit
 Terms are calculated using benchmark London market indications, facultative
reinsurance terms regularly obtained for comparison
 Cargo liability (CMR)
 Restrictive terms offered for over age vessels , Cl. 280 FPA ucb, Cl. 284 or
Cl. 289 at underwriters’ discretion or higher additional machinery deductibles
 Fast response to brokers, usually same day – significant differentiator in the
 English law and jurisdiction is preferred; however local jurisdiction of original
assured could be accepted
 CertAsig is a quoting market with at least 80% of business underwritten
Marine Business
Key points
 Marine Reinsurance Programme is underwritten by:
Lloyd’s, Hannover Re, Flagstone Re & other reinsurers with rating of A- or better
Marine Hull, Protection & Indemnity, Cargo & General Aviation
 Non-proportional excess of loss treaty
 Capacity up to USD 10,000,000 (USD 9,750,000 xs USD 250,000)