Reinsurance

Each year the Reinsurance Association of America (RAA) provides an overview of the countries from which U.S. insurance companies obtain reinsurance, i.e., the countries to which they have ceded, or transferred, some of their risk. The analysis includes premiums that a U.S. insurance company cedes to offshore, i.e., foreign, reinsurance companies that are not part of the insurer’s own corporate group (unaffiliated offshore insurers in the chart below), as well as business ceded to overseas reinsurers that are part of the insurer’s corporate family (affiliated offshore reinsurers) in the chart below).

The RAA report compares U.S. insurance premiums ceded to U.S. professional reinsurance companies to the U.S. premiums ceded to offshore, i.e., foreign, companies. U.S. professional reinsurance companies accounted for 38.2 percent of the U.S. premium written that was ceded in 2013, while offshore companies accounted for 61.8 percent. However, a number of U.S.-based reinsurers are owned by foreign companies. Taking this into consideration, foreign reinsurers accounted for 91.9 percent while U.S. professional reinsurers accounted for 8.1 percent.

U.S. REINSURANCE PREMIUMS CEDED TO UNAFFILIATED AND AFFILIATED OFFSHORE REINSURERS BY COUNTRY, 2012-2014 (1)

($ millions)

    Unaffiliated offshore reinsurers Affiliated offshore reinsurers  
Rank Country 2012 2013 2014 2012 2013 2014 2014 total
1 Bermuda $9,387 $10,019 $9,962 $23,918 $25,471 $25,465 $35,427
2 Switzerland 1,151 1,426 2,192 9,013 10,803 11,815 14,007
3 United Kingdom 4,719 5,137 4,980 544 477 512 5,492
4 Germany 2,883 3,712 3,740 1,318 1,579 1,541 5,281
5 Cayman Islands 2,963 3,301 2,981 591 982 1,096 4,077
6 Turks and Caicos 873 1,084 1,445 234 237 291 1,736
7 Channel Islands 2,883 1,252 1,323 NA NA NA 1,323
8 Barbados 652 658 761 NA NA NA 761
9 Ireland 454 565 441 194 180 168 609
10 British Virgin Islands 434 462 499 NA NA NA 499
11 Japan NA NA NA 294 -1,857 464 464
12 France NA NA NA 256 336 337 337
13 Spain NA NA NA 278 266 259 259
  Total, countries shown $26,398 $27,615 $28,372 $36,640 $38,474 (2) $41,949 $70,321
  Total, all countries $26,790 $29,176 $30,211 $36,929 $38,741 (2) $42,295 $72,506

(1) Ranked by 2014 total reinsurance premiums.
(2) Includes -$1.86 billion in affiliated premiums ceded to Japan.

NA=Data not available.

Source: Reinsurance Association of America.

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NET PREMIUMS WRITTEN, U.S. PROPERTY/CASUALTY REINSURERS, 2005-2014

($000)

Year Net premiums written Annual percent change Combined ratio (1) Annual point change
2005 $26,520,474 -11.8% 126.0 20.5 pts.
2006 26,625,918 0.4 94.2 -31.8
2007 24,548,841 -7.8 93.5 -0.7
2008 26,440,426 7.7 100.4 6.9
2009 25,548,851 -3.4 92.3 -8.1
2010 25,722,426 0.7 94.5 2.2
2011 27,897,553 8.5 107.1 12.6
2012 31,649,616 13.4 96.2 -10.9
2013 29,144,853 -7.9 86.8 -9.4
2014 50,012,241 (2) 71.6 91.0 4.2

(1) After dividends to policyholders.
(2) Includes National Indemnity Co.'s loss portfolio and quota share agreements with affiliated GEICO companies.

Source: Reinsurance Association of America.

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TOP 10 U.S. PROPERTY/CASUALTY REINSURERS OF U.S. BUSINESS BY GROSS PREMIUMS WRITTEN, 2014

($000)

Rank Company (1) Country of parent company Gross premiums written
1 National Indemnity Company (Berkshire Hathaway) (2) U.S. $26,447,145
2 QBE Re America Australia 5,288,813
3 Everest Reinsurance Company Bermuda 4,995,249
4 Swiss Reinsurance America Corporation Switzerland 4,491,990
5 Munich Re America Germany 4,162,336
6 XL Reinsurance America Ireland 3,603,590
7 Transatlantic Reinsurance U.S. 3,143,029
8 Odyssey Reinsurance Group Canada 2,551,797
9 Partner Reinsurance Company of the U.S. Bermuda 1,721,966
10 AXIS Reinsurance Company Bermuda 1,269,884

(1) See Reinsurance Underwriting Report footnotes posted at www.reinsurance.org for list of affiliated companies included.
(2) Underwriting results exclude assumptions from affiliated General Re Group; includes National Indemnity Co.'s loss portfolio and quota share agreements with affiliated GEICO companies.

Source: Reinsurance Association of America.

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TOP 10 GLOBAL PROPERTY/CASUALTY REINSURERS BY NET REINSURANCE PREMIUMS WRITTEN, 2013

($ millions)

Rank Company Net reinsurance
premiums written
Country
1 Munich Reinsurance Co. $22,545.9 Germany
2 Swiss Re Ltd. 14,542.0 Switzerland
3 Hannover Re S.E. 12,905.8 Germany
4 Berkshire Hathaway Reinsurance Group 11,440.0 U.S.
5 Lloyd's of London 11,363.7 U.K.
6 Scor S.E.  5,931.9 France
7 Everest Re Group Ltd. 5,004.8 Bermuda
8 PartnerRe Ltd. 4,479.1 Bermuda
9 Korean Reinsurance Co. 3,499.0 (1) South Korea
10 Transatlantic Holdings Inc. 3,248.0 U.S.

(1) Fiscal year ending March 31.

Source: Business Insurance (www.businessinsurance.com), September 1, 2014.

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