Special and Financial Risks (SFR)
SFR is responsible for credit, aviation and space, enterprise/contingency and
political risks, and for alternative markets business, as well as for developing capital
market solutions and placing retrocession covers for the whole reinsurance group. Over
and above that, SFR initiates and coordinates cross-divisional innovation projects and
establishes innovative business ideas in connection with internal divisional issues.
Alternative markets consist of major industrial clients who offer us their
business "directly" by way of primary insurance via brokers or so-called
captives, i.e. subsidiaries set up specifically by industrial companies or groups to
insure their risks.
With enterprise and contingency risks, the division offers cedants a wide range
of reinsurance solutions, such as cancellation-of-events, film, residual value, or prize
indemnity insurance. Innovative forms of coverage such as insurance for geological risks
involving geothermal projects are an area where demand for insurance is steadily increasingly.
We view the capital markets as a supplement to traditional reinsurance,
especially as alternative risk carriers or potential risk providers. Through our
subsidiary Munich American Capital Markets we are active in this segment and transfer
risks to and from the capital markets, assuming such risks as weather derivatives and
intellectual property.