How we help insurers with their capital position.
Our Financial Reinsurance team deliver solutions to UK, offshore UK and Irish life insurers. We are adept at meeting a wide range of needs associated with the capital and tax management of long-term insurance business.
Our relationship with insurers is underpinned by achieving a thorough understanding of their financial position so we can ensure that the solutions we provide add maximum value. Our involvement with, and intrinsic understanding of primary insurance, enables us to understand your needs and aspirations.
Examples of transactions we have completed are:
- A £200m facility cash financing treaty with a FTSE 100 listed insurance group covering both in-force business and future new business. We incorporated an innovative trust component to minimise client credit risk, sharing the benefits of this with the insurer in the pricing terms.
- Financing support of a private equity backed management buyout of an offshore life insurer, providing initial in-force financing and on-going new business financing tailored to the cash needs of the business.
- New business financing for a major UK protection writer, with the financing quantum directly related to the volume and mix of new business written.
- Cash financing in respect of in-force business for the UK and Irish subsidiaries of a FTSE 100 listed insurance group.
Benefits to you
Munich Re's financial reinsurance proposition can help to:
- increase statutory free capital and to improve capital efficiency
- monetise non-cash assets (e.g. value in force) and generate liquid capital resources
- enhance the embedded value of in-force business and the value added by new business
- improve the IRR on which new business is written
- improve tax efficiency
- reduce retained insurance risk and risk-based capital requirements