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2016 Life Reinsurance Survey Results
David Bruggeman, FSA, MAAAAVP & actuary, individual life pricing
Image: used under license from shutterstock.com
Disclaimer
Munich Re prepared the survey on behalf of the Society of Actuaries Reinsurance Section as a service to section members. The contributing companies provide the numbers in response to the survey. These numbers are not audited and Munich Re, the Society of Actuaries and the Reinsurance Section take no responsibility for the accuracy of the figures.
2016 Life Reinsurance Survey - May 10, 2017 2© 2017 Munich American Reassurance Company. All Rights Reserved.
2016 Life Reinsurance Survey results
Who: top U.S. & Canadian reinsurers
What: individual & group new business (assumed) and in force
Definitions
Recurring: issued in same year as reinsured
Portfolio: issued prior to year reinsured
Retrocession: reinsurance not directly written by ceding company
Reinsurance figures for individual life based on amount (NAR) and group life based on premium
Note: some figures may not add due to rounding
2016 Life Reinsurance Survey - May 10, 2017 3© 2017 Munich American Reassurance Company. All Rights Reserved.
U.S. individual life new business
Image: used under license from shutterstock.com
A brief history… U.S. individual life recurring new business
2016 Life Reinsurance Survey - May 10, 2017 5© 2017 Munich American Reassurance Company. All Rights Reserved.
# of Reinsurers 30 25 15 9
Recurring NB $156B $268B $844B $422B
Top Reinsurers
Transamerica Occidental ($28B)
Lincoln National Life ($17B)
General Re ($16B)
Transamerica Re ($41B)
Lincoln National Life ($34B)
RGA Re ($24B)
RGA Re ($183B)
Scottish Re ($131B)
Transamerica Re ($130B)
SCOR ($97B)
Swiss Re ($90B)
Munich Re ($70B)
2015200519951986
U.S. individual life new business trend
2016 Life Reinsurance Survey - May 10, 2017 6© 2017 Munich American Reassurance Company. All Rights Reserved.
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016% Change -14.2% -5.7% -3.7% -9.4% -15.3% -8.7% -3.4% -0.5% -3.6% -4.6% 12.3%
-14.2%
-5.7%-3.7%
-9.4%
-15.3%
-8.7%
-3.4%-0.5%
-3.6% -4.6%
12.3%
-25.0%
-15.0%
-5.0%
5.0%
15.0%
25.0%Annual Percentage Change in U.S. Recurring New Business
U.S. recurring cession rate
2016 Life Reinsurance Survey - May 10, 2017 7© 2017 Munich American Reassurance Company. All Rights Reserved.
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016% Reinsured 39.9% 36.1% 35.2% 34.2% 30.2% 27.6% 26.5% 27.0% 26.9% 24.7% 27.2%Amt Retained 1,089 1,207 1,212 1,148 1,168 1,211 1,234 1,197 1,163 1,240 1,223Amt Reinsured 724 683 658 596 505 461 445 443 427 407 457
U.S
. Bill
ions
U.S. Ordinary Individual Life Insurance Sales
U.S. recurring by company – top five companies
2016 Life Reinsurance Survey - May 10, 2017 8© 2017 Munich American Reassurance Company. All Rights Reserved.
U.S. recurring by company – next four companies
2016 Life Reinsurance Survey - May 10, 2017 9© 2017 Munich American Reassurance Company. All Rights Reserved.
9
9
17
17
8
10
19
11
Optimum Re
General Re Life
Aurigen
Canada Life
2015 2016
Top 588%
Aurigen4%
Canada Life 4%
General Re2%
Optimum Re2%
Recurring Business ($ billions) 2016 Market Share
U.S. recurring by company ($ billions)All companies
2016 Life Reinsurance Survey - May 10, 2017 10© 2017 Munich American Reassurance Company. All Rights Reserved.
Top five companies continue to represent almost 90% of market share
YRT/coinsurance
2016 Life Reinsurance Survey - May 10, 2017 11© 2017 Munich American Reassurance Company. All Rights Reserved.
80%
20%
YRT Coinsurance
2016 New Business 2016 In Force
58%
42%
YRT Coinsurance
New business coinsurance levels have fallen from 37% in 2009 to 20% in 2016
U.S. portfolio business ($ billions)
2016 Life Reinsurance Survey - May 10, 2017 12© 2017 Munich American Reassurance Company. All Rights Reserved.
39 102
35
257
777
94
1,042
344
628
238
130
729
-
200
400
600
800
1,000
1,200
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
U.S
. $ (b
illio
ns)
U.S. Portfolio Business
U.S. retrocession ($ billions)
34 30 29 15 7 8 7 9
203
5 8 -
50
100
150
200
250
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 20162016 Life Reinsurance Survey - May 10, 2017 13© 2017 Munich American Reassurance Company. All Rights Reserved.
Canada individual life new business
Image: used under license from shutterstock.com
A brief history …Canada individual life recurring new business
2016 Life Reinsurance Survey - May 10, 2017 15© 2017 Munich American Reassurance Company. All Rights Reserved.
# of Reinsurers 14 14 7 6
Recurring NB $9B $17B $110B $153B
Top Reinsurers
Munich Re ($3B)
Canadian Re ($2B)
St. Lawrence Re ($1B)
Swiss Re ($4B)
Munich Re ($4B)
RGA Re ($3B)
Munich Re ($49B)
RGA Re ($31B)
Swiss Re ($26B)
RGA Re ($49B)
Munich Re ($40B)
Swiss Re ($25B)
2015200519951986
Canada recurring cession rate
16© 2017 Munich American Reassurance Company. All Rights Reserved.
0
100
200
300
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016% Reinsured 75% 73% 77% 73% 71% 70% 65% 64% 64% 63% 60%Amt Retained 48 52 46 55 63 66 81 79 80 90 107Amt Reinsured 141 139 150 152 153 153 149 143 142 153 160
Can
adia
n B
illio
ns
Canadian Ordinary Individual Life Insurance Sales
2016 Life Reinsurance Survey - May 10, 2017
Canada recurring by company
2016 Life Reinsurance Survey - May 10, 2017 17© 2017 Munich American Reassurance Company. All Rights Reserved.
7
15
21
29
41
44
7
14
18
25
40
49
Optimum Re
Aurigen
SCOR Global Life
Swiss Re
Munich Re
RGA Re
2015 2016
RGA Re27%
Munich Re26%
Swiss Re 18%
SCOR13%
Aurigen10%
Optimum Re6%
Recurring Business ($ billions) 2016 Market Share
Canada portfolio and retrocession
2016 Life Reinsurance Survey - May 10, 2017 18© 2017 Munich American Reassurance Company. All Rights Reserved.
Munich Re: CA$40.7 billion
Portfolio Retrocession
Group business
Image: used under license from shutterstock.com
Group business – recurring business
2016 Life Reinsurance Survey - May 10, 2017 20© 2017 Munich American Reassurance Company. All Rights Reserved.
476546
646691
728798
0
200
400
600
800
1,000
2011 2012 2013 2014 2015 2016
107102 103 105
101 104
0
50
100
2011 2012 2013 2014 2015 2016
US In Force Premiums ($ millions USD) Canada In Force Premiums ($ millions CAD)
U.S. group life in force premiums
2016 Life Reinsurance Survey - May 10, 2017 21© 2017 Munich American Reassurance Company. All Rights Reserved.
58
39
156
346
507
1,239
2,393
64
34
110
328
547
297
754
Other *
Group Reinsurance Plus
RGA Re
Swiss Re
Hannover
Munich Re
Canada Life
2015 2016
Note: Other includes General Re, SCOR, Scottish Re, Berkshire Hathaway Group, Optimum Re and Pacific Life
Canada group life inforce premiums (CA$ millions)
2016 Life Reinsurance Survey - May 10, 2017 22© 2017 Munich American Reassurance Company. All Rights Reserved.
0.1
2
6
22
25
836
0.1
2
6
23
25
1,144
Berkshire Hathaway
SCOR
Optimum Re
RGA Re
Swiss Re
Munich Re
2015 2016
In closing…
Image used under license from iStock.com
2016 overview
2016 Life Reinsurance Survey - May 10, 2017 24© 2017 Munich American Reassurance Company. All Rights Reserved.
Individual LifeNew Business Volumes ($ billions)
GroupInforce Premiums ($ millions)
2015 2016 % Change 2015 2016 % Change
U.S.
Recurring 407 457 12% 728 798 10%
Portfolio 130 729 459% 1,405 3,938 180%
Retrocession 5 8 61% 0 0 n/a
Total 543 1,194 120% 2,134 4,737 122%
Canada
Recurring 153 159 4% 101 104 3%
Portfolio 3 41 1131% 1,098 786 -28%
Retrocession 2 6 240% 0 0 n/a
Total 158 206 30% 1,241 885 -26%
Looking ahead
Image used under license from iStock.com
Questions?
Complete results: www.munichre.com/us/life under “Publications”
E-mail questions to dbruggeman@munichre.com
2016 Life Reinsurance Survey - May 10, 2017 26© 2017 Munich American Reassurance Company. All Rights Reserved.
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