- What does Citadel Re do?
Citadel Re is a traditional quota share and excess of loss reinsurance carrier based in Bermuda. Citadel was more a structured program reinsurer in the 1980s and 1990s, and while we still look at these types of programs, we are insistent that both parties account for the lack of risk transfer in accordance with risk transferring concepts. Citadel also assumes the risk for entities that wish to go into run off, enabling them to liquidate assets and derive a final return for their investment.
- How long have you been trading?
Citadel has been trading in Bermuda since 1984. It has made one loss – in 2008 – since that time.
- What size programs or clients do you look at?
Citadel will consider programs from $0 to $50m of premium, although it can even exceed this if the program transfers little or no risk and is accounted for accordingly.
- I’ve heard you are focussed on “run off” programs?
Citadel does have a reputation for run off programs, mainly because of its subsidiary, Citadel Risk Management, which specialises in the management a run off program. It manages over $3billion in liability, but remains a service entity. Citadel (being the risk carrier) will assume the risk (if required by the client) for a program in run off.
- Do you look at start ups?
Citadel is a flexible company that is prepared to write start up risk, and in certain cases, fund a start up operation.
- What is your surplus?
Our GAAP surplus varies between $USD20m and $25m, depending upon profitability and dividends paid to the holding company. Over $40m of dividends have been paid since 1991, hence the size of the surplus.
- Are you rated?
No, but we are currently going through the rating process with Demotech. We have up until now resisted, but we now view it as commercial reality. Depending upon the program, we often support reinsurance recoverable with a clean, irrevocable letter of credit or a NY State Regulation 114 Trust. Having said that our reputation since 1984 is of a reinsurance company that pays claims on a timely basis.
- Do you have a segregated cell facility?
Citadel has a segregated cell company, Citadel International Reinsurance Company Limited.
- Who is Citadel’s shareholder?
100% of the shares are owned by Sirius International Limited, also a Bermudan company.
- What is the relationship between Citadel and Citadel Risk Management?
Citadel owns 100% of the shares of Citadel Risk Management
- What is the relationship between Citadel and the Citadel Hedge Fund in Chicago?
None whatsoever, although we do get their mail a lot.
- Who best to contact?
Depending upon the nature of the query and your geographic location, if you are in Bermuda, contact Mick Larkin on +1 441 2921174, in the United States, contact Art Coleman on +1 203 5959650, or in Europe, either Peter Sheldon on +44 1883 346410 or Tony Weller on +33 6 79147600.
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