Rheel joins Munich Re’s NA specialty insurance drive

Former Aspen US insurance president Bob Rheel has joined Munich Re’s new specialty insurance platform as the carrier continues to build out its platform in a buoyant E&S marketplace, The Insurer can reveal.

According to sources, Rheel has been at the WSIA annual marketplace in San Diego with his new senior colleagues, including Munich Re Specialty Insurance (MRSI) CEO Mike Kerner, who he previously worked with at Zurich.

Although Rheel is currently in a consulting role, it is thought he will lead distribution for the operation.

Kerner was hired by Munich Re at the end of last year at the head of the new commercial insurance unit for North America as the (re)insurer signaled that it was targeting growth in the specialty primary market with the formation of MRSI.

Kerner joined MRSI from Bermudian Everest Re, where he had most recently been executive vice president of risk management and strategy.

Among executive changes since Kerner took the role was the appointment of Jill Biggs as president of E&S lines earlier this year in a move first revealed by The Insurer.

Kerner has also made a number of senior hires as he looks to build out the new specialty unit, including Diane Link as head of E&S casualty at MRSI.

Link joined in April from Swiss Re Corporate Solutions, which has been significantly retrenching from E&S business this year.

Kerner has also hired former Hiscox executive Adam Edelstein as COO of the new platform.

In a statement back in April this year, Munich Re said the executive will spearhead the buildout of MRSI to support growth strategies and drive operational efficiencies.

Edelstein reports directly to Kerner, who said the executive would work closely with him to provide “leadership, management and vision” for the buildout of the new unit.

Sources said that while MRSI is still very much in the start-up phase it is actively quoting and binding business and is seen by brokers as a potentially significant market player going forward as it leverages the strength of the Munich Re brand and rating.

The move to build a specialty insurance platform comes at a time of record growth in the E&S market.

Wholesale brokers are reporting a surge in submissions that has accelerated through the first nine months of 2019.

At the same time many carriers in the space – led by AIG’s Lexington – have been shortening limits and pushing for significant rate increases.

There have also been examples of retrenchment in the sector, including Swiss Re Corporate Solutions, which pulled out of E&S primary and excess general liability business in May in a move first revealed by this publication.

Sources said that current market conditions are likely to create a major opportunity for an unencumbered quasi start-up with a strong balance sheet behind it to grow a book of business in a highly favourable pricing environment.

Rheel left his most recent position of president at Aspen’s US insurance operations in the summer of 2016, officially retiring from the company after five years.

At the time he was credited by then Aspen CEO Chris O’Kane with having played a pivotal role in building out the company’s US insurance brand.

He had joined the Bermudian from Zurich in 2011 around the same time as Mario Vitale, who moved from the Swiss giant to take the role of CEO at Aspen’s insurance operations.

Munich Re did not immediately respond to a request for comment on this article.