Janus Assurance Re’s Post

The Week in 90 Seconds: European reinsurers; Computable contracts; D&O rates http://spr.ly/6048kAQ6G #InsuranceInsidernews #insurance #reinsurance

“It’s been a period of extensive change after one of relative calm. “For a number of years, the reinsurance industry was essentially subsidizing the insurance industry, and ultimately the front-end consumer, because we were bearing more of the risk than we were getting paid for..” https://lnkd.in/deEpdNS4 #outsourcing #insuranceindustry #insurance #insurancebroker #mgas #insuranceclaims #insurancesolutions #FLINKBusinessSolutions

The trickle down of "softening rate trends" for 2025 looks to be ongoing. As with post-Katrina, the big 40-50% year over year increases seem to have plateaued. Now hopefully we can see some more competition for the profit that was had in 2023. Not that a soft market is imminent, but save multiple large cat losses in Q4 the market could at least take a breath on rate increases. #insurance #propertyinsurance #coastalproperty #propertycaptives

“Although market interest in new carriers remains, it’s more unlikely that one of material size will be formed in the near future,” analysts at AM Best concluded of current market forces. Read the article for more: https://ow.ly/xURW50R90KV #Insurance #Reinsurance #Carriers

💡Did you know that reinsurance is insurance for insurance companies? It seems like whenever someone working for a reinsurer is asked what they do for a living and they respond with, “I work for a reinsurer”, often the person who asked the question is left with a puzzled look. For those working in the insurance industry, there may be a general understanding of reinsurance, but often the benefits of reinsurance are not clear, and questions remain. So, why do insurance companies reinsure their business? Some reasons include: ·      Reducing or spreading the risk ·      Expanding an insurer's capacity ·      Increasing underwriting capabilities ·      Financial benefits ·      Gaining access to reinsurance solutions ·      Utilizing the reinsurer's expertise #Insurance #Reinsurance #DidYouKnow

Reinsurers with the most stable year-over-year performance have consistently delivered the most value to shareholders during the past decade. With an annual total shareholder return of 11.5 % over the past ten years and 13% over the past five—both well above the cost of equity—reinsurance has outperformed the insurance industry as a whole and would rank close to the first quartile among all sectors as measured in our global value creators rankings. ⭐ Discover the top reinsurance performers in our new report, In Reinsurance, Boring Is Beautiful, part of the 2024 Insurance Value Creation series. Find the report here: https://on.bcg.com/4cYHGQu #insurance #valuecreation #Reinsurance #BCGValueCreators2024 Thank you to our authors Raphael Troitzsch, Nathália Bellizia, Nadine Moore, Jacob Palmer and Jürgen Bohrmann

Reinsurance is important for four main reasons: 1. To protect an insurer against very large claims Insurers spread the costs of paying out on large risks by reinsuring part of what they have agreed to insure with other reinsurers. This ‘spread’ means that the loss incurred by each individual insurer is not as severe. 2. To reduce exposure to ‘peaks and troughs’ Insurers want a balanced set of underwriting results each year, without peaks and troughs. Because reinsurance covers them against unusually large losses, this keeps a cap on the claims the insurer has to pay. 3. To obtain an international spread of risk This is important when a country is vulnerable to natural disasters and an insurer is heavily committed in that country. Insurance may be reinsured to spread the risk outside the country. 4. To increase the capacity of the direct insurer Sometimes, insurers want to insure a very large risk but are unable to do this on their own. By using reinsurance, the insurer can accept the whole risk and then reinsure the parts it cannot keep with other insurers. Reach us today for free Consultation admin@lrb.co.tz www.lrb.co.tz

The PRA have issued new rules on the way firms assess and justify the risks associated with the use, or intended use, of Funded Reinsurance arrangements. In its accompanying ‘Dear CEO’ letter, the PRA has clearly set out its expectations of the boards of UK life insurers using or intending to use such arrangements, rules that also apply to third-country branches. Claire King looks at what the new rules mean for the board members of UK life insurers and those responsible for briefing them. https://lnkd.in/eFzmxZ44 #advisory #insurance #risk

BCG’s 2024 report shows the reinsurance sector thriving, especially in Property & Casualty with a 11.5% TSR over the past decade. Despite challenges, reinsurers outpace the broader insurance industry. L&H reinsurers, however, face margin pressure. https://hubs.la/Q02PTJLb0

This was widely reported late Friday so I almost missed it. Another reinsurance deal is aways something to report. As many actuaries have explained to me over the past few years, a reinsurance deal, in most situations, is a vote of confidence in the insurer that the block being reinsured will be profitable. Global Atlantic Financial Group said Thursday that it has closed on a previously announced reinsurance deal with Manulife. The deal includes blocks of U.S. life insurance, U.S. annuities and Japanese whole life insurance policies backed by $5.6 billion in assets, in U.S. dollars. The deals also include U.S. long-term care insurance policies backed by $4.4 billion in assets. The LTCI policies were issued by Manulife’s John Hancock subsidiary. Reinsurers and LTCI issuers have had trouble agreeing on prices for LTCI reinsurance, and the arrangement is the biggest LTCI reinsurance deal ever announced, according to Global Atlantic. https://lnkd.in/ebktXN4C #reinsurance #lifeinsurance #annuities