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Structured Prospective Solutions

Setting the scene

Your target KPIs and reinsurance needs are evolving and you wish to rethink your retention levels or consider enhancing your existing reinsurance structure?

The structuring features we offer can address your needs in a more targeted manner than traditional risk transfer mechanisms.  The focus and flexibility offered by these features is why structured reinsurance is increasingly used as capital management tool.

The Solution

We offer a wide range of solutions suited to addressing specific capital requirements resulting from solvency models like Solvency II or C-ROSS, Rating Agency Capital Models from S&P or A.M. Best, or other Risk-Based Capital (RBC) models.
Whether your organisation requires additional capital to keep up with its targeted annual premium growth or to steer the capital adequacy ratio, we have the necessary experience to assist with structured reinsurance solutions. With respect to other KPIs, our structured reinsurance solutions can be used to provide business plan protection to support newly established entities in the first years of their operation or allow you to optimize your existing risk portfolio by utilizing comprehensive multi-class aggregate.
Fitting the relevant reinsurance structures to your individual situation, while ensuring alignment with local regulatory requirements is achieved in close collaboration with you. Listed below are just a few examples of the wide selection of tailor-made features we can customize for you.
Employ reinsurance combined with features that address the liquidity requirements of your organisation’s exceptional activities. For example a funds withheld structure that allows you to retain the bulk of the premium, minimizing disruptions to your investment activities. 
Our solutions can also transfer the risk of adverse development of prior accident year reserves. As part of prospective reinsurance this is typically known as a calendar year solution.
In certain jurisdictions additional limitations for such covers apply and need to be considered.
Retroactive covers as stand-alone solutions are the perfect tool for freeing up redundancies and capital or to ring-fence liabilities.
Reassure a regulator or rating agency with regard to sustainable capital management while benefiting from smoothing effects over time. You can choose tailor-made multi-year structures flexibly adaptable to your expectations. Covers can be adapted to better match specifics within your business plan time horizon.
Restructuring options allow to flexibly adapt the contract to the development in previous periods.

Structuring features like retentions or limits can be automatically re-adjusted based on
previous loss experience or exposure development to better match risk retention over a longer term.

Annual and term deductibles and limits can be set to optimize a solution to match your requirements and risk appetite.

Share in the profit from better than anticipated performance over the term of a multi-year solution. 
Expectations of the loss burden in the first year of a structured solution differ between the parties? Specifically defined additional premium features after one or two years can bridge those differences and help to secure an agreement by lowering the upfront premium.
Like the restructuring option, a prolongation option allows the flexibility to adapt the contract to the development after an initial period of time. Extending a multi-year solution will smooth results over a longer time period by acting as additional buffer while accounting for deviations compared to growth plans.

5 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
Support from custom-built Deal Teams interconnected with experts and Client Managers of Munich Re
Streamlined client interfaces that ensure close cooperation and short response times
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