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Retroactive Reinsurance Solutions

Setting the scene

Of our retroactive reinsurance clients seek for balance sheet certainty
Qualitative and quantitative demands on risk and capital management have risen while supervisory authorities, rating agencies and investors expect greater transparency and efficiency. It all adds up to tremendous pressure on primary insurers to optimize their risk and capital situation. This puts the focus on technical reserves – both for ongoing business and for business in run-off – and the tied-up capital with corresponding investments that cover them.

The Solution

Through retroactive reinsurance, the reinsurer assumes the risks associated with past exposure periods. The reserve risk consists of adverse development (IBNR/IBNER) risk and the risk of accelerated claims pay-outs. Based on your portfolio and strategic goals, we will work with your company’s top decision-makers to structure a cost-effective retroactive solution precisely to your risk management and capital management needs. We offer full risk-transfer reinsurance products that combine the benefits of a loss portfolio transfer (LPT) and adverse development cover (ADC). Our comprehensive, consultative approach gives you the big picture, along with complete cost-benefit transparency.

Client Motivation Cluster: % of deals

5 characteristics at a glance

Retroactive reinsurance is a powerful capital and risk management solution, either on a stand-alone basis or in combination with other measures.
Coverage (attachment point, limit, etc.) can be flexibly geared to your needs.
The effect of a retroactive cover on your capital position will be immediate and sustainable.
On top of providing capital relief, retroactive reinsurance ensures protection against potential adverse reserve development.
With all claims handling activities remaining in your hands, you continue to be the one that interacts with your clients.

4 reasons clients choose Munich Re

Turnkey reinsurance-based corporate finance solutions from a single source
A flexible approach using instruments proven successful by clients around the globe
Continuous exploration of new solutions for specific motivations arising in changing markets
Streamlined client interfaces that ensure close cooperation and short response times
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