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P&C Structured SolutionsAn Introduction
P&C Structured SolutionsAn Introduction
Capital Efficiency & Relief
Supporting Growth Operational Efficiency
Address Regulatory Developments
Volatility Protection & Portfolio Transparency
Reduce Spend & Capital Cost
P&C Structured SolutionsAn Introduction
In 2019 Swiss Re helped 160 P&C clients in 35 countries release USD 1.8bn of capital through structured reinsurance solutions.
Internal Diversification
Budget Certainty
Stable Reinsurance
Capacity
P&C Structured SolutionsAn Introduction
Volatility Protection & Portfolio TransparencyA Case Study
A medium-sized insurer with a balanced book of business (life and non-life) had a history of volatile results in non-life lines. The company was negatively impacted by the financial crisis and was struggling to meet profitability targets. The insurer sought to reduce volatility of the non-life business, optimise its reinsurance costs and protect against a deteriorating combined ratio.
Swiss Re provided a multi-line, multi-year aggregate excess loss cover. The effectiveness of the structure was supported by extensive risk modelling. This resulted in the reduction of the volatility of the combined ratio, reducing earnings volatility.
Result The insurer benefited from internal diversification, stable reinsurance capacity and more budget certainty.
Ourstructuring skills and capabilities
Sustainablebusiness success
Yourambition and opportunities
P&C Structured SolutionsAn Introduction
We support clients through structured solutions offering more efficient risk protection, optimising capital structures and minimising capital costs.
P&C Structured SolutionsAn Introduction
Supporting Growth A Corporate Finance Case Study
Acquisition-led growth was part of our client’s short-to-medium-term strategy. Any acquisition was to be funded through a combination of debt and existing excess capital – avoiding the dilution of stock. Our client wanted to increase capital more than the targeted capital adequacy ratio (from a rating and regulatory perspective). It needed a flexible solution with minimal upfront costs, one that could be accessed at short notice and without distracting management resources during the due diligence of M&A activity. The cost-efficient outcome increased capital through a quota share. The bespoke reinsurance structure kicked in automatically on closing of the acquisition, without further design or negotiations. The dynamic cession rate stabilised the solvency ratio and responded automatically to an actual “hit” to the available statutory capital base following the acquisition, which was particularly valuable because any goodwill paid reduced the regulatory capital base.
Upfront expenses were minimal because the quota shared started with a minimum cession rate, then stepped up as and when more capacity was needed. Management was able to focus resources fully on the acquisition target, and to consider additional safeguards for the acquired portfolio only if needed.
P&C Structured SolutionsAn Introduction
When the situation changes, our structured solutions enable our clients to adjust and grow through regulatory regime changes, market dislocations and M&A activity.
Stable Capital Relief
P&C Structured SolutionsAn Introduction
Capital ReliefA Case Study
An insurer with a well-established business in both Life & Health and Property & Casualty was subject to the Standard Formula under Solvency II in the transition period to prepare for regulatory approval. Capital was needed at the group level to finance new ventures. The insurer wanted to grow its life business.
By reducing the capital requirement for its general insurance portfolio, it wanted to free up capital to be able to allocate more resources to different areas such as the life book. Swiss Re developed a unique retrospective and prospective structure enabling seamless coverage across all years of retrospective and prospective business.
The structure enabled the provision of stable capital relief over many years, as the capital relief of the retrospective LPT cover on the client’s reserves alone would decline over time.
Result The solution provided the client with full operational and claims handling control on their Property & Casualty book, while at the same time financing the desired growth in the life book.
P&C Structured SolutionsAn Introduction
Swiss Re at a GlanceA track record of exceptional performance: a solid partner for the future
150+Leading and highly diversified global reinsurer, founded in Zurich (Switzerland) in 1863
Years experience
USD 38bnSwiss Re’s Gross premium written totaled almost over USD 38bn in 2019, thus reaffirming the leading position in the industry
Market-leading position
History of proven strength, consistently maintaining an A+ rating, makes Swiss Re a reliable partner
Financial strength
A+A.M. BEST
Aa3MOODYS
AA-S&P
* % of Net premium earned in 2019
Highly diversified, Swiss Re offers both traditional and innovative products in Property & Casualty and Life & Health business across all geographies
Swiss Re offering
47% *
Americas
31% *
EMEA
22% *
Asia
P&C Structured SolutionsAn Introduction
Your P&C contacts
John Levy Head P&C Structured Solutions Regional US P&C Structured Solutions [email protected] +1 847 273 1968
Lu-Ling Chng Head P&C Structured Solutions UK P&C Structured Solutions [email protected] +44 20 7933 3173
Lawrence Katz Head P&C Structured Solutions Globals US, Canada & LatAm P&C Structured Solutions [email protected] +1 914 828 8188
Cameron Parker Head P&C Structured Solutions Continental Europe & Africa P&C Structured Solutions [email protected] +41 43 285 18 66
Peter Liebwein Global Head P&C Structured Solutions [email protected] +41 43 285 91 76
Alison Drill Head P&C Structured Solutions Asia P&C Structured Solutions [email protected] +61 2 8295 9770
Swiss Reinsurance Company LtdMythenquai 50/60P.O. Box8022 ZurichSwitzerland
Telephone +41 43 285 2121Fax +41 43 285 2999www.swissre.com
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The information and opinions contained in the presentation are provided as at the date of the presentation and may change. Although the information used was taken from reliable sources, Swiss Re does not accept any responsibility for its accuracy or comprehensiveness or its updating. All liability for the accuracy and completeness of the information or for any damage or loss resulting from its use is expressly excluded.
