Reinsurance

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, 2011-2013 (1)

($ millions)

    Unaffiliated offshore reinsurers Affiliated offshore reinsurers  
Rank Country 2011 2012 2013 2011 2012 2013 2013 total
1 Bermuda $9,798 $9,387 $9,676 $21,802 $23,918 $22,597 $32,273
2 Switzerland 1,316 1,151 1,388 7,496 9,013 10,434 11,822
3 United Kingdom 4,680 4,719 4,781 792 544 1,654 6,435
4 Germany 2,697 2,883 3,655 972 1,318 1,579 5,234
5 Cayman Islands 2,548 2,963 3,308 377 591 1,321 4,629
6 Turks and Caicos 733 873 1,047 79 234 270 1,317
7 Channel Islands 1,518 2,883 1,261 NA NA NA 1,261
8 Ireland 485 454 490 323 194 174 664
9 Barbados 607 652 659 NA NA NA 659
10 France NA NA NA 436 256 630 630
11 British Virgin Islands 355 434 464 NA NA NA 464
12 Spain NA NA NA 164 278 266 266
13 Canada NA NA NA 92 96 100 100
  Total, countries shown $24,737 $26,399 $26,729 $32,533 $36,442 $39,025 $65,754
  Total, all countries $26,374 $26,790 $28,386 $33,051 $36,929 $37,357 (2) $65,743 (2)

(1) Ranked by 2013 total reinsurance premiums.
(2) Includes ($1.91) billion in affiliated premiums ceded to Japan.

NA=Data not available.

Source: Reinsurance Association of America.

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NET PREMIUMS WRITTEN, MAJOR U.S. PROPERTY/CASUALTY REINSURERS, 2004-2013 (1)

($000)

Year Net premiums written Annual percent change Combined ratio (2) Annual point change
2004 $28,759,085 -6.1% 106.2 5.0 pts.
2005 25,330,697 -11.9 129.4 23.2
2006 25,834,026 2.0 94.9 -34.5
2007 22,711,994 -12.1 94.7 -0.2
2008 23,920,333 5.3 101.8 7.1
2009 23,906,150 -0.1 93.5 -8.3
2010 23,305,291 -2.5 95.4 1.9
2011 26,390,657 13.2 107.2 11.8
2012 29,481,444 11.7 96.2 -11.0
2013 26,843,064 -8.9 86.8 -9.4

(1) Based on reinsurance companies responding to quarterly surveys conducted by the Reinsurance Association of America.
(2) After dividends to policyholders.

Source: Reinsurance Association of America.

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TOP TEN U.S. PROPERTY/CASUALTY REINSURERS OF U.S. BUSINESS BY GROSS PREMIUMS WRITTEN, 2013

($000)

Rank Company (1) Country of parent company Gross premiums written
1 QBE North America Australia $5,896,257
2 National Indemnity Company (Berkshire Hathaway) (2) U.S. 5,494,058
3 Swiss Reinsurance America Corporation Switzerland 4,941,108
4 Everest Reinsurance Company  Bermuda 4,348,736
5 Munich Re America, Corp. Germany 4,267,168
6 XL Reinsurance America Ireland 3,380,109
7 Transatlantic Reinsurance  U.S. 3,138,346
8 Odyssey Reinsurance Group Canada 2,539,263
9 Partner Reinsurance Company of the U.S. Bermuda 1,623,083
10 General Re Group U.S. 1,206,713

(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.

Source: Reinsurance Association of America.

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TOP TEN GLOBAL PROPERTY/CASUALTY REINSURERS BY NET REINSURANCE PREMIUMS WRITTEN, 2013 (1)

($ 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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