QBE Re, the specialist reinsurance division of QBE Insurance Group, has announced it is establishing an underwriting operation in Bermuda through the creation of a branch of QBE Re (Europe) Limited.

A QBE statement explained they had decided to make the move to Bermuda: “in order to access locally the business that emanates from this important market.”

The Bermuda Monetary Authority confirmed the October 8 Bermuda registration of QBE Re in a release yesterday. A QBE statement announcing the establishment of the operation stated: “This initiative will enhance QBE Re’s global infrastructure, designed to combine local expertise and customer focus in the major reinsurance markets.

“In Bermuda, QBE Re will be licensed to operate as a Class 4 reinsurer and will be writing property and casualty treaty business.” Class 4 insurers and reinsurers underwrite direct excess liability insurance and/or property catastrophe reinsurance risks, and are required to maintain minimum capital and surplus of $100 million.

Heading the Bermuda operations will be Erik Soria who is transferring from QBE Re’s New York office. Mr Soria will report to Jonathan Parry, chief underwriting officer, QBE Re, which is based in London.

QBE’s global reinsurance division was formed in 2012 when the QBE Insurance Group took the decision to align its worldwide treaty reinsurance capabilities, the re/insurer has said, and described the move as “a reflection of the group’s long term commitment to the international reinsurance market.

“QBE Re’s global platform offers clients the flexibility of both Company (A+ Standard & Poor’s) and Lloyd’s security. In 2015, QBE Re plans to underwrite US$1 billion gross written premium split across property, casualty and specialty classes.

Mr Parry is quoted saying: “With QBE Re now firmly established following its launch in 2012, we have taken the decision to enhance our distribution base and access locally the business that emanates from this important market. Our branch in Bermuda will complement our existing operations in London, Dublin, New York and Brussels, and will provide an additional platform for growth as we develop and scale up our business worldwide.”

Along with the registration of QBE Re, two agents, Ascot Underwriting (Bermuda) Limited and Multi-Strate Advisors Ltd, were also confirmed for October.