Last week, Allied World Bermuda, the Bermuda unit of Allied World Assurance Company Holdings, AG (AWH), launched an excess casualty coverage package called Constellation. The package consists of five excess casualty coverage products combined in one.
The five coverage enhancements offered by Constellation are Uni-Wrap, Affirmative Punitive Damages, Defense-Assistance & Cooperation Provision, Payment of Loss Provision and Business Continuity Protection.
Uni-Wrap tackles the loopholes of the conventional policies and provides coverage for punitive damages in the follow-form occurrence market. Affirmative Punitive damages provide coverage above retention. Defense Assistance & Cooperation Provision provides drop-down, duty-to-defend after the primary duty-to-defend is exhausted. Payment of Loss Provision recognizes amounts paid by the insured for covered loss. Business Continuity Protection provides policy extension when communication between an insured and its broker or Allied World gets disrupted by a natural catastrophe.
A combination of the five enhancements captures almost all the issues that an ideal coverage policy should consider. These coverage services will be integrated into Allied World Bermuda’s follow-form occurrence policies. Thus it is expected to enhance the overall follow-form business of Allied World, and add to the existing $25 million coverage policy.
Allied World, the global provider of innovative property, casualty and specialty insurance and reinsurance solutions, designed Constellation to address the loopholes of the long-established excess casualty products. Management stated that, requests from the company’s clients and brokers led to the effort. The launch of Constellation, is aimed at providing its customers and trading partners with developed products which will help them to cope with the risks encountered. In turn this will help Allied World to maintain client confidence and thus client retention.
We expect the launch of Constellation to push up the earnings of the company in response to improved levels of sales owing to acquisition of new customers and retention of existing customers. The Zacks Consensus Estimate for full year 2013 is pegged at $7.02 representing a year-over-year improvement of 37.8%.
The initiator of Constellation, Allied World Bermuda is a leading name in the general casualty coverage market in Bermuda. By means of its follow-form occurrence coverage and capable underwriters, the unit has consistently provided protection to its clients. Through Constellation, the company intends to improve services offered and provide a thorough and superior protection to prospective consumers.