Gen Re Australia will close its office in Melbourne as part of a restructure announced by the global parent.

The Berkshire Hathaway-owned reinsurer will also shut its offices in Hong Kong, three US centres and Riga in Latvia.

MD and Asia Pacific Treaty Regional Manager Andrew Flitcroft told insuranceNEWS.com.au the five facultative underwriters who make up the Melbourne office have been offered relocation to the Sydney office.

The Melbourne office will be closed from the end of July.

“For some time we have been evaluating our office footprint around the globe,” he said. “Considerations included the best and most effective ways to service our clients, their current and anticipated future reinsurance buying patterns, and the centralisation of our resources.

“Our conclusions lead us to believe that consolidation of our operations in Sydney is the best way to achieve that.”

Mr Flitcroft says Gen Re is “fully committed to the Australian market. We have had a presence in Australia for over 50 years and have no intention to change that.

“Our historical support of the local market – as evidenced by commitment of capital, provision of capacity, payment of claims, and support of local training initiatives – proves that.  

“Our priority is to be a stable and consistent long-term market participant by providing the best available security at terms that are commensurate with the risks ceded.”

Property/casualty President Bob Jones says in a statement that Gen Re has “now reviewed its entire global footprint, and with this change, we are positioning Gen Re’s property and casualty operation to address the realities of today’s markets”.

“When you add technology to the equation, being a direct reinsurer in the 21st century has evolved from where it was two decades ago,” he says.

“We need to deliver underwriting and claims expertise in the most effective manner, while not compromising the quality of our products and promises. This new structure positions us to deliver on that.”