Broadly split into three main areas, each with different dynamics:
 

1. General Liability (GL) and first excess layers (up to USD25m):

The number of London markets participating in this class has always been on the limited side. Liberty Europe and Aspen’s recent decision to cease writing GL business has further shrunken the pool. These markets typically geared their business plans to make a ‘small’ margin on high premium volumes, targeting a 70-80% loss ratio, however with significant claims deterioration in recent years, most notably on auto liability, the books have become loss making. Between them, Aspen and Liberty were the main London primary and first excess markets and the loss of these two leading carriers has created a hole in the market.
 
There are markets who will still look at risks within the GL/USD25m space. Depending on exposures, offshore accounts are typically easier to place, along with accounts with a small/contingent auto exposure. 
 
It is difficult to name a typical ‘market rise’ in this space. In our experience, some accounts have proved impossible to place in London (such as oilfield truckers), some have renewed flat and others seeing marginal increases (typically small offshore accounts, consultants, which are seen as ‘softer’ exposures). Offshore E&P accounts have experienced 10-20% rises, and accounts with heavy losses/auto exposures may go for much greater, with some requiring larger underlyings or domestic first excess layers. 
 
In short, this is a difficult area for London at the moment and almost all accounts need extensive marketing, with plenty of lead in time to find the best solution in London. Miller has created an exclusive facility in this space, more details below.
 

2. Mid-high level excess limits (above a USD25m attachment point):

Accounts attaching above USD25m (perhaps lower if the account is smaller or has limited auto) are much more straight forward to place, with significant overall capacity still available in London and little change in market appetite. Typically, markets are looking at a 5% ‘market rise’ on flat exposures, although currently this ranges from 2.5% to 10% depending on attachment point and programme structure.
 

3. High excess layers written in Bermuda:

For high excess layers placed in Bermuda, we are seeing rises averaging at 20%, but often for accounts currently paying a low minimum rate on line (say 3 per mil). This is due to a withdrawal of available capacity and a range of high profile losses (such as Californian wildfires).  

Miller’s exclusive London Market GL facility

In response to the lack of GL options within London, Miller’s Energy Liability team have spent months working with those markets still writing to create a solution. 

Now able to offer up to USD5m limits of GL coverage for primary and umbrella layers, and USD5m - USD10m for excess layers where attaching above USD10m but within first USD25m, this is the only London Market General Liability facility currently available and is exclusive to Miller. Capacity is all A+ rated markets.

For more information contact a member of our team.