Lloyd’s Insurer Arch Cements Alliance With Dual Australia

Lloyd's insurer Arch Insurance Europe and underwriting agency Dual Australia have cemented an alliance that could lead the Australian partner to write business with a premium value of about A$50 million (28.9 million pounds) in Lloyd"s this year.

That prediction was offered by James Weatherstone, president and chief executive officer of Arch Insurance Europe. Weatherstone described Dual's profile as a "small-medium enterprise play –- financial lines and professional lines." This business will be augmented by a recent move into personal accident cover, Weatherstone said.

Dual's business at Lloyd's will be written through Arch's Syndicate 2012, Weatherstone told BestWire.

Arch has "had a long and profitable relationship" with the Dual organization, Weatherstone said. "Our business with Dual in Australia predates this agreement."

The connection with Dual in Australia grew out of Arch's lack of a license to write business in Australia. Dual is part of the Hyperion Insurance Group.

Arch is ready to help Dual sell mainstream property/casualty insurance to its existing professional lines customers. Arch, he added, hopes to be able to package products that can be sold through the Dual network into Australia. In addition to property/casualty, these lines might include marine.

"We've got a team of specialty lines underwriters here in London who are on call to help Dual round out their product offering," he said.

Weatherstone described Dual Australia, which was founded in 2004, as "a relatively mature" operation that concentrates on high-volume, low- value commercial business. This is the opposite of what Arch is doing in the very expensive environment of London.

"They're capturing a market that we can"t do from London," said Weatherstone, who expressed confidence that Dual is motivated by profit rather than premium.

Dual Australia, Weatherstone suggested, has a strong appeal to first-time buyers, an efficient distribution system and a commitment to service.

Lloyd’s and Arch Insurance Co. (Europe) Ltd. have current Best’s Financial Strength ratings of A (Excellent).