This presentation is from a recent A.M. Best market briefing. The topics of this panel discussion included global reinsurance trends, the impact of alternative capital, and the merger and acquisition phase. A.M. Best’s group vice president John Andre, vice president Bob DeRose, assistant vice presidents Steve Chirico and Greg Reisner, and senior financial analyst Susan Molineux participated in the discussion.
Securization of Life-Related Traditional Premium Finance LoansA.M. Best Company
This presentation is from a recent webinar featuring A.M. Best analysts Yuhmei Chen and Elmo Chin. They discussed their perspective on the securitization of pools of collateralized loans used to finance the premiums of life insurance policies. To view the webinar, click here: http://bit.ly/297eEAx.
Credit insurance common misconceptions and can it be a useful tool finalIgor Zax (Zaks)
Igor Zax, Managing Director of Tenzor Ltd. presented 4-th of November 2014 a webcast “Credit Insurance: Common Misconceptions, and Can it Be a Useful Tool”, hosted by Commercial Finance Association (CFA), the international trade association dedicated to the asset-based lending and factoring industries.
The webcast was attended by major banks, asset based lenders, export credit agencies, insurance brokers and credit insurers
Securization of Life-Related Traditional Premium Finance LoansA.M. Best Company
This presentation is from a recent webinar featuring A.M. Best analysts Yuhmei Chen and Elmo Chin. They discussed their perspective on the securitization of pools of collateralized loans used to finance the premiums of life insurance policies. To view the webinar, click here: http://bit.ly/297eEAx.
Credit insurance common misconceptions and can it be a useful tool finalIgor Zax (Zaks)
Igor Zax, Managing Director of Tenzor Ltd. presented 4-th of November 2014 a webcast “Credit Insurance: Common Misconceptions, and Can it Be a Useful Tool”, hosted by Commercial Finance Association (CFA), the international trade association dedicated to the asset-based lending and factoring industries.
The webcast was attended by major banks, asset based lenders, export credit agencies, insurance brokers and credit insurers
In this risk retention piece, we provide updates to how the final rule under Dodd-Frank applies to CLOs. We cover the permissible forms of risk retention and financing options for the risk retention obligation among other things.
Writekraft Research and Publications LLP was initially formed, informally, in 2006 by a group of scholars to help fellow students. Gradually, with several dissertations, thesis and assignments receiving acclaim and a good grade, Writekraft was officially founded in 2011 . Since its establishment, Writekraft Research & Publications LLP is Guiding and Mentoring PhD Scholars.
Our Mission
“To provide breakthrough research works to our clients through Perseverant efforts towards creativity and innovation”.
Vision
Writekraft endeavours to be the leading global research and publications company that will fulfil all research needs of our clients. We will achieve this vision through:
Analyzing every customer’s aims, objectives and purpose of research
Using advanced and latest tools and technique of research and analysis
Coordinating and including their own ideas and knowledge
Providing the desired inferences and results of the research
In the past decade, we have successfully assisted students from various universities in India and globally. We at Writekraft Research & Publications LLP head office in Kanpur, India are most trusted and professional Research, Writing, Guidance and Publication Service Provider for PhD. Our services meet all your PhD Admissions, Thesis Preparation and Research Paper Publication needs with highest regards for the quality you prefer.
Active Capital Reinsurance Ltd commenced operations in 2007, mainly providing credit-related reinsurance solutions to financial institutions in Latin America, and it has a general insurance and reinsurance license issued in Barbados.
Instilling the Right Credit Risk CultureLibby Bierman
As the Comptroller's Handbook states, "a bank’s first defense against excessive credit risk is the initial credit-granting process, sound underwriting standards, an efficient, balanced approval process, and a competent lending staff." The start of a new year is the perfect time to review and improve your credit risk culture.
Garrett Morris, director of consulting at Sageworks, discussed the key elements of a strong credit risk culture, including:
-Three Ps of credit analysis
-Five Cs of credit
-Five Cs of data collection
-12 questions to ask at your institution
Life insurance is used for many different purposes. During this webinar, we will discuss how Corporate America is currently using life insurance, such as Non-Qualified plans, keyman protection, and buy sell funding. As well as what to look for when purchasing life insurance, as not all products are created equally. We will provide life insurance education on Term, Whole Life, Universal Life, No Lapse Guarantee, Indexed Universal Life, and Variable Universal Life.
What is the difference between Whole Life and Indexed Universal Life for Reti...Michael Grigsby
I get asked a lot about how Whole Life insurance differs from Indexed Universal Life insurance, particularly when it comes to retirement planning. In this presentation, I note the similarities between these forms of permanent insurance, the differences, and why you might use one instead of the other.
In this risk retention piece, we provide updates to how the final rule under Dodd-Frank applies to CLOs. We cover the permissible forms of risk retention and financing options for the risk retention obligation among other things.
Writekraft Research and Publications LLP was initially formed, informally, in 2006 by a group of scholars to help fellow students. Gradually, with several dissertations, thesis and assignments receiving acclaim and a good grade, Writekraft was officially founded in 2011 . Since its establishment, Writekraft Research & Publications LLP is Guiding and Mentoring PhD Scholars.
Our Mission
“To provide breakthrough research works to our clients through Perseverant efforts towards creativity and innovation”.
Vision
Writekraft endeavours to be the leading global research and publications company that will fulfil all research needs of our clients. We will achieve this vision through:
Analyzing every customer’s aims, objectives and purpose of research
Using advanced and latest tools and technique of research and analysis
Coordinating and including their own ideas and knowledge
Providing the desired inferences and results of the research
In the past decade, we have successfully assisted students from various universities in India and globally. We at Writekraft Research & Publications LLP head office in Kanpur, India are most trusted and professional Research, Writing, Guidance and Publication Service Provider for PhD. Our services meet all your PhD Admissions, Thesis Preparation and Research Paper Publication needs with highest regards for the quality you prefer.
Active Capital Reinsurance Ltd commenced operations in 2007, mainly providing credit-related reinsurance solutions to financial institutions in Latin America, and it has a general insurance and reinsurance license issued in Barbados.
Instilling the Right Credit Risk CultureLibby Bierman
As the Comptroller's Handbook states, "a bank’s first defense against excessive credit risk is the initial credit-granting process, sound underwriting standards, an efficient, balanced approval process, and a competent lending staff." The start of a new year is the perfect time to review and improve your credit risk culture.
Garrett Morris, director of consulting at Sageworks, discussed the key elements of a strong credit risk culture, including:
-Three Ps of credit analysis
-Five Cs of credit
-Five Cs of data collection
-12 questions to ask at your institution
Life insurance is used for many different purposes. During this webinar, we will discuss how Corporate America is currently using life insurance, such as Non-Qualified plans, keyman protection, and buy sell funding. As well as what to look for when purchasing life insurance, as not all products are created equally. We will provide life insurance education on Term, Whole Life, Universal Life, No Lapse Guarantee, Indexed Universal Life, and Variable Universal Life.
What is the difference between Whole Life and Indexed Universal Life for Reti...Michael Grigsby
I get asked a lot about how Whole Life insurance differs from Indexed Universal Life insurance, particularly when it comes to retirement planning. In this presentation, I note the similarities between these forms of permanent insurance, the differences, and why you might use one instead of the other.
Debt Trends in the Capital Structure of European InsurersA.M. Best Company
Catherine Thomas, A.M. Best's Senior Director of Analytics, gave a presentation focusing on Europe's debt trends and capital structure. The presentation originally debuted during A.M. Best's recent London briefing.
A.M. Best's Chief Rating Officer Stefan Holzberger discussed ratings, opportunities and capitalization in the EMEA markets during A.M. Best's recent briefing in London.
Boulanger Kick-Starts Its Big City Stores with Exciting New Concept: Virtual ...Capgemini
Boulanger wanted to offer an enhanced digital experience to its customers inside the stores. AIE (Applied Innovation Exchange) helped Boulanger to create Digital Walls in its store to offer a virtual merchandise experience to customers.
European Insurers: Pressures on Capital Efficiency and Expansion into Emergin...A.M. Best Company
Take a look at Carlos Wong-Fupuy's presentation from our recent London briefing. Wong-Fupuy is the Senior Director of Analytics for A.M. Best Asia-Pacific. In this presentation he discusses capital efficiency, plans for expansion into emerging markets and much more.
Dubai Customs Becomes the First Smart Government Department in Dubai with its...Capgemini
Dubai Customs transitions to digital platforms to help customers access its services on digital platforms. Capgemini helped Dubai Customs to create a Cargo Inspection Framework on a Siebel platform that is helping Dubai Customs to manage the flow of goods smoothly.
Overview of A.M. Best's Stochastic Based BCAR for U.S. P/C InsurersA.M. Best Company
This presentation focuses on A.M. Best's revised BCAR model. Aside from highlighting the initial changes to the BCAR model, the slides focus on treatment of risks in BCAR, analyst views and how all of this applies to the rating process. Created by Thomas Mount.
A.M. Best - Europe's Senior Financial Analyst, Anthony Silverman, discussed how Solvency II will affect financial ratings for the European insurance market at the European Solvency II Summit in Brussels.
Criteria Review Seminar 2015 Stochastic-Based BCAR (Best’s Capital Adequacy ...A.M. Best Company
Take a look at Mathilde Jakobsen, associate director of analytics, recent presentation from our London briefing. Jakobsen focuses on recent updates to A.M. Best's BCAR model.
Insurance, Gen Y and Internet of Things: World Insurance Report 2016 InfographicCapgemini
The evolution of the Internet of Things, combined with changing behaviors and preferences from Gen Y customers, is pushing the insurance industry toward massive disruption. This year’s Report explores how these trends are driving an urgent need for insurers to transform or risk falling behind new competitors.
The rise of innovation empires InfographicCapgemini
From July 2015 to February 2016, 56 innovation centers opened in 20 countries with 11 more opening soon. View the infographic to see the global shift breakdown.
We live in an era of unprecedented volatility. Trends on three major dimensions – economics, demographics, and geopolitics – combined
with the exponential pace of technology change, are converging to create a challenging new reality for organizations. These forces create opportunities that we cannot even imagine, but also present new frontiers to be explored.
The Economist Intelligence Unit, on behalf of BlackRock, surveyed senior executives from insurance and reinsurance companies around the world to understand how they were responding to the pressures their fixed income portfolios are under, and how they viewed private market asset classes such as real estate and infrastructure as an investment opportunity.
Beyond the secular forces that we describe in our Future of Insurance series1, more immediate and cyclical issues will be shaping the insurance executive agenda i n 2 016 .2 Commercial insurers (including reinsurers) face tough times ahead with underwriting margins that are being pressured by softening prices and a potentially volatile interest rate environment.
Mercer Capital's Valuing Insurance AgenciesMercer Capital
Like most professional services firms, much of the value of an insurance agency lies in its customer base, workforce, and the intangible factors that drive growth and margin. But not all insurance agencies are created equal. The recurring revenue streams, low fixed asset intensity, and favorable financing characteristics have drawn the interest of industry consolidators, private equity investors, financial institutions, and other participants, leading to a robust transaction environment. Join Lucas as he reviews the valuation methodologies and drivers of value for insurance agencies and brokerages.
This presentation highlights the investment process and risk controls that Latin America Structured Finance Advisors believes is necessary to make wise investment decisions.
2017 Real Estate Industry Report HighlightsGraeme Cross
We live in an era of unprecedented volatility. Trends on three major dimensions – economics, demographics, and geopolitics – combined with the exponential pace of technology change, are converging to create a challenging new reality for organizations. These forces create opportunities that we cannot even imagine, but also present new frontiers to be explored.
Generating income for your portfolio in a late-cycle marketnetwealthInvest
Learn how you can defend your portfolio in times of heightened market volatility and explore the different types of fixed-income investments with Paul Chin, Head of Investment Strategy and Research at Jamieson Coote Bonds.
Rather than shy away from some of the more efficient non-core funding techniques, we believe it wise to make certain your Board and your Examiners understand what is being accomplished through the use of wholesale funding tactics and our third webinar on the ALCO Process is designed to describe an approach to this issue. We will provide guidance on:
1. Where to describe your strategy.
2. Limits to place on non-core funding.
3. Reporting the use of non-core funding.
4. Non-core funding products and services that are in use today.
5. Pros and Cons of these funding sources.
GreensKeeper Asset Management, AGM presentation 2016 Michael McCloskey
GreensKeeper hosted our 5th Annual General Meeting at the Mississauga Golf and Country Club on June 9th, 2016. We presented our philosophy, our results, and some select stock picks, to a record number of attendees. Net of all fees and expenses, we have compounded our clients' capital at a rate of 11.2%, over the past four years.
What's New with Corporate Retirement Plans? More Than You ThinkSkoda Minotti
This presentation discusses the rapidly changing (and litigious) landscape of corporate retirement plans and the best practices top companies are implementing to maintain a quality benefit offering, reduce risk exposures, and retain top talent.
In today’s digital age, our clients are surrounded by a digitally enabled world to engage in constant, collaborative interactions. There are fundamental forces in the wider landscape that serve as unstoppable digital tailwinds. This presentation by Tej Vakta, Wealth Management Practice Leader, Capgemini, was presented as a keynote at FIBA and it discusses why the Investment Management industry needs to think beyond the Digital Revolution and get influenced by the Digital Disruption happening around their customers to re-imagine the engagement model for driving loyalty and becoming their strategic partner as a primary financial service provider.
Similar to State of the Global Reinsurance Market (20)
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
Seminar: Gender Board Diversity through Ownership NetworksGRAPE
Seminar on gender diversity spillovers through ownership networks at FAME|GRAPE. Presenting novel research. Studies in economics and management using econometrics methods.
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
how to sell pi coins at high rate quickly.DOT TECH
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
BYD SWOT Analysis and In-Depth Insights 2024.pptxmikemetalprod
Indepth analysis of the BYD 2024
BYD (Build Your Dreams) is a Chinese automaker and battery manufacturer that has snowballed over the past two decades to become a significant player in electric vehicles and global clean energy technology.
This SWOT analysis examines BYD's strengths, weaknesses, opportunities, and threats as it competes in the fast-changing automotive and energy storage industries.
Founded in 1995 and headquartered in Shenzhen, BYD started as a battery company before expanding into automobiles in the early 2000s.
Initially manufacturing gasoline-powered vehicles, BYD focused on plug-in hybrid and fully electric vehicles, leveraging its expertise in battery technology.
Today, BYD is the world’s largest electric vehicle manufacturer, delivering over 1.2 million electric cars globally. The company also produces electric buses, trucks, forklifts, and rail transit.
On the energy side, BYD is a major supplier of rechargeable batteries for cell phones, laptops, electric vehicles, and energy storage systems.
The Evolution of Non-Banking Financial Companies (NBFCs) in India: Challenges...beulahfernandes8
Role in Financial System
NBFCs are critical in bridging the financial inclusion gap.
They provide specialized financial services that cater to segments often neglected by traditional banks.
Economic Impact
NBFCs contribute significantly to India's GDP.
They support sectors like micro, small, and medium enterprises (MSMEs), housing finance, and personal loans.
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
This assessment plan proposal is to outline a structured approach to evaluati...
State of the Global Reinsurance Market
1. State of the Global Reinsurance
Market
May 17, 2016
Panelists:
Bob DeRose – Vice President
Steve Chirico – Assistant Vice President
Greg Reisner – Assistant Vice President
Susan Molineux – Senior Financial Analyst
Moderator:
John Andre – Group Vice
President
A.M. Best Briefing - Bermuda
3. Discussion Outline
A.M. Best Briefing - Bermuda 3
Global Reinsurance Results and Trends
Impact of Alternative Capital
The Merger and Acquisition Phase
May 17, 2016
5. Market Reinsurers Have…
A.M. Best Briefing - Bermuda 5
Negative
Outlook
Increased
client
retentions
Excess
capacity
Capital
convergence
Benign cat
losses
Questionable
underwriting
discipline
Declining
reserve
redundancies
Low
investment
yields
May 17, 2016
6. Combined Ratios by Sector
A.M. Best Briefing - Bermuda 6May 17, 2016
Note: “Big Four” refers to the Big Four European
Reinsurers
99% 95% 93%
107% 108% 107%
91% 91% 93% 91% 87% 87%
92% 88% 87% 92% 90% 89%
0%
20%
40%
60%
80%
100%
120%
Big
Four
Lloyd's US
&
BDA
Big
Four
Lloyd's US
&
BDA
Big
Four
Lloyd's US
&
BDA
Big
Four
Lloyd's US
&
BDA
Big
Four
Lloyd's US
&
BDA
Big
Four
Lloyd's US
&
BDA
2010 2011 2012 2013 2014 2015
Loss Ratio Expense Ratio
7. Return on Equity by Sector
A.M. Best Briefing - Bermuda 7May 17, 2016
-5%
0%
5%
10%
15%
20%
2010 2011 2012 2013 2014 2015
European "Big Four" US & Bermuda Market Lloyd's Five Year Average
8. Reinsurance Capacity Utilization
A.M. Best Briefing - Bermuda 8May 17, 2016
Source: A.M. Best research and data
Capacity Utilization Based on Aggregate Risk-Adjusted
Capitalization of Rated Balance Sheets
50%
60%
70%
80%
90%
100%
2012 2013 2014 2015E
9. Capital Management
A.M. Best Briefing - Bermuda 9May 17, 2016
194 194
218 215
235 232
10 14
20 25
33 38
- 2
4 6
14 21
-
50
100
150
200
250
300
2010 2011 2012 2013 2014 2015
Shareholders'Equity(USDBillions)
Global Reinsurance
Shareholders' Equity plus Share Repurchases & Dividends
Shareholders' Equity (End of Period) Share Repurchases Common and Preferred Dividends
11. Alternative Capital
A.M. Best Briefing - Bermuda 11
Market still heavily
influenced
by
global leaders –
that won’t change anytime
soon
Cultural issues
no longer
limiting M&A –
it is happening
Alternative capacity
is driving change
Alternative capital is
driving a great deal of
structural change in the
market
However, do not lose
sight of the fact that the
market continues to be
heavily influenced by the
global reinsurance leaders
May 17, 2016
12. Top 50 Global Reinsurers
A.M. Best Briefing - Bermuda 12
The Top 10 global reinsurance companies continue
to strongly influence the landscape
Reinsurance
Premiums Written
2015 Life & Non-Life (USD m)
Ranking Company Name Gross Net
1 Munich Reinsurance Co. 39,035 37,761
2 Swiss Reinsurance Co. Ltd. 33,276 31,640
3 Hannover Rueckversicherung AG 17,457 15,100
4 Berkshire Hathaway Inc. 14,919 14,919
5 SCOR S.E. 13,756 12,324
6 Lloyd’s 13,199 10,416
7 Reinsurance Group of America Inc. 9,118 N/A
8 China Reinsurance (Group) Corp. 8,506 7,991
9 PartnerRe Ltd. 5,932 5,720
10 Everest Re Group Ltd. 5,749 5,257
Life and Non-Life GPW Distribution by
Ranking
May 17, 2016
Source: A.M. Best data and research
Rank 1-10
72%
Rank 11-20,
13%
Rank 21-30
7%
Rank 31-40
5%
Rank 41-50
3%
13. Dedicated Reinsurance Capacity
A.M. Best Briefing - Bermuda 13May 17, 2016
Total Dedicated Reinsurance Capacity (USD billions)
Note: * Estimate by Guy Carpenter and A.M. Best
Source: A.M. Best, Guy Carpenter
-
50
100
150
200
250
300
350
400
450
2012 2013 2014 2015E*
Estimate for Total Dedicated Reinsurance Capacity
Traditional Capacity Convergence Capacity
14. CAT Bond Issuances
A.M. Best Briefing - Bermuda 14May 17, 2016
Source: A.M. Best Research and Artemis
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
CatastropheBonds(MillionsofUSD)
Year
Property and Casualty Industry
15. Convergence Products
A.M. Best Briefing - Bermuda 15
Basis Risk – The risk that a convergence instrument may not fully trigger when
the sponsor suffers a loss
Tail Risk – The risk borne by a sponsor if an entity to which it cedes business
is insufficiently capitalised
Credit, Default and Recovery Risk – Transactions that
involve payment obligations from third parties
Investment Performance Risk – For transactions that rely on
investment earnings and return on investments
Structuring Risk – Transactions involving securitizations where cash
flows are an essential source of investor repayment
Modelling Risk – Transaction where modelling performed by third-party
consulting firms
Risks associated
with convergence
products
May 17, 2016
17. Alternative Capital
A.M. Best Briefing - Bermuda 17
Asset Manager View
• Permanent capital to earn
fee income
• Tax deferred returns
• Cost free“float” if done
correctly
• Provide another product for
potential investors
Reinsurer View
• Can toggle between asset
and liability risk providing
more cycle management
opportunity
• Float can generate more
income than plain vanilla
portfolio
May 17, 2016
Hedge Fund Reinsurance Model
18. Alternative Capital
A.M. Best Briefing - Bermuda 18
Build
• Long-term capital
• Recruit leadership talent
• Build infrastructure
• Develop relationships
• Obtain acceptable rating
• Gain market acceptance
Partnership
• Long-term capital
• Draw from existing talent
• Established infrastructure
• Benefit from existing relationships
• Reduce ramp-up risk
• Alignment of interest
• Obtain acceptable rating
• Gain market acceptance
May 17, 2016
Hedge Fund Reinsurance Model Continues to Gain Interest
19. Alternative Capital
A.M. Best Briefing - Bermuda 19
Hedge fund reinsurers
Greenlight
Re
Build
FSR “A”
Third
Point
Re
Build
FSR “A-”
Hamilton
Re
Build
FSR “A-”
PAC Re
Partner
Rating
Withdrawn
Watford
Re
Partner
FSR “A-”
Fidelis
Build
FSR “A-”
May 17, 2016
21. The Drive for Efficiency
A.M. Best Briefing - Bermuda 21
The market will continue to
become more efficient as all
players strive to become closer to
the client
May 17, 2016
22. The Base Case for M&A
May 17, 2016A.M. Best Briefing - Bermuda 22
Broader product
capability
Broader geographic
reach
Greater influence
with brokers and
cedants
Greater
attractiveness to
third-party capital
M&A
Most M&A deals
in the current
reinsurance
market are
focused on one,
if not all, of
these four
categories
23. Reinsurers Price-to-Book Value
excluding AOCI as of 2015
A.M. Best Briefing - Bermuda 23
The increase in
valuations helps
when buying from a
“currency”
perspective
Alternatively,
companies typically
don’t want to sell
themselves below
book value
May 17, 2016
40
60
80
100
120
140
160
180
200
220
94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15
Price/BookValue
Years
Average
Current P/BV: 1.10x
Average 1993-Present: 1.16x
Low Reached March 2009 (0.75x BV)
Peak reached February 2002 (1.83x BV)
1.0x P/BV
Source: Company reports, Bloomberg, A.M. Best data and research
25. Current Market Conditions
It’s a “buyer’s market”
Primary
companies
strategically
buying
Increased use
of alternative
capacity
Terms and
conditions
broadened
Rate on line
under
pressure –
especially
loss-free
business
Industry
consolidation
is creating a
ripple effect
A.M. Best Briefing - Bermuda 25May 17, 2016
27. Navigating the Market
May 17, 2016A.M. Best Briefing - Bermuda 27
Sources: GC Analysis, SNL,
Bloomberg
28. Alternative Capital
A.M. Best Briefing - Bermuda 28
Capital
Market /
Reinsurers
Convergence
Relatively
attractive
returns
Uncorrelated
asset class
Limited
investment
alternatives
Better
understanding
of risk
Losses have
been limited
thus far
Tax
advantage
return
Permanent
source of
capital
Cost-free
float
Hedge
Fund
Model
May 17, 2016
29. State of the Global Reinsurance
Market
May 17, 2016
Panelists:
Bob DeRose – Vice President
Steve Chirico – Assistant Vice President
Greg Reisner – Assistant Vice President
Susan Molineux – Senior Financial Analyst
Moderator:
John Andre – Group Vice
President
A.M. Best Briefing - Bermuda