Seneca CEO: ‘We’re Taking a Marathon Approach’ to New Surety Business

Seneca Insurance Cos. said it's getting into the business of contract and commercial surety, a move the company's chief executive officer said was consistent with its goals of delivering on individual specialty niches and having a strong hold in small and middle markets.

The company is launching the new product line along with a new operating division headquartered in Morristown, N.J.

Gary Dubois, president and CEO of Seneca, told Best's News Service that as they launch the new line, Seneca will be mindful of the economic environment. "The construction environment has clearly been under some duress over the last few years, but we believe there are reasonable opportunities to lay some initial foundation," he said.

There's been an overall contraction in the construction market, which means there's quite a bit of competition in the segment.

"We'll be conservative," Dubois said. "We're not looking for dramatic growth. Our goal is to be in this space for many years to come. We're taking a marathon approach rather than a sprint approach."

Being in a niche business will help because it allows the company to be more effective at leveraging its underwriting expertise, he said.

He added there are some initial signs that suggest some flattening or even small elements of firming in the pricing environment for commercial property/casualty lines in the United States. "Whether or not it's sustainable is an issue that is subject to considerable amount of debate," Dubois said. "We'll plan for the worst and build our strategy around a presumption that things won't improve dramatically in the short-term. We believe we will still be successful."

Seneca is licensed with the U.S. Treasury Department to write surety in all 50 states.

Ken Ryan, who was named vice president of Seneca's surety division, approached the company about the new opportunity. "I've known Ryan for some years and I know he carries a tremendous reputation as an underwriter in small- to middle-market commercial surety," Dubois said.

With more than 33 years of surety and surety reinsurance experience, Ryan has worked in underwriting management and executive positions at Seaboard Surety/St. Paul, Zurich/Converium Re, Markel, and Argo.

The company also announced Mike Sheelen will take over as manager of contract surety. He has 14 years of experience in contract surety and has been an underwriter for Argo Surety, Chubb, and Hartford.

Maria Impallomeni will serve as underwriting administrator. She has more than 15 years experience in surety and has worked with Seaboard Surety/St. Paul, Aon, Chubb, and Liberty/Safeco.

Seneca Insurance Group had $141.8 million in direct premiums written in 2010. Among them, $4.33 million were in surety, according to BestLink.

Seneca Insurance Cos. is comprised of Seneca Insurance Co. Inc. and Seneca Specialty Insurance Co. and provides specialty property and casualty insurance products and services. It's a wholly owned indirect subsidiary of Crum & Forster Holdings Corp. and part of Fairfax Financial Holdings, Inc.

Seneca Insurance Co. Inc. and Seneca Specialty Insurance Co. have a current Best's Financial Strength Rating of A (Excellent).

(By Marie Suszynski)