Financial reinsurance (or fin re) is a form of reinsurance which is focused more on capital management than on risk transfer. In the non-life insurance segment of the insurance industry this class of transactions is often referred to as finite reinsurance.
One of the particular difficulties of running an insurance company is that its financial results - and hence its profitability - tend to be uneven from one year to the next. Since insurance companies generally want to produce consistent results, they may be attracted to ways of hoarding this year's profit to pay for next year's possible losses (within the constraints of the applicable standards for financial reporting). Financial reinsurance is one means by which insurance companies can "smooth" their results.
A pure 'fin re' contract for a non-life insurer tends to cover a multi-year period, during which the premium is held and invested by the reinsurer. It is returned to the ceding company - minus a pre-determined profit margin for the reinsurer - either when the period has elapsed, or when the ceding company suffers a loss. 'Fin re' therefore differs from conventional reinsurance because most of the premium is returned whether there is a loss or not: little or no risk-transfer has taken place.
In the life insurance segment, fin re is more usually used as a way for the reinsurer to provide financing to a life insurance company, much like a loan except that the reinsurer accepts some risk on the portfolio of business reinsured under the fin re contract. Repayment of the fin re is usually linked to the profit profile of the business reinsured and therefore typically takes a number of years. Fin re is used in preference to a plain loan because repayment is conditional on the future profitable performance of the business reinsured such that, in some regimes, it does not need to be recognised as a liability for published solvency reporting.
and 29 Related for: Financial reinsurance information
Financialreinsurance (or fin re) is a form of reinsurance which is focused more on capital management than on risk transfer. In the non-life insurance...
the reinsurance policy is referred to as the "ceding company" or "cedent". The company issuing the reinsurance policy is referred to as the "reinsurer"....
Reinsurance Group of America, Incorporated (NYSE: RGA) is a holding company for a global life and health reinsurance entity based in Greater St. Louis...
Ltd is a Swiss reinsurance company founded in 1863 and headquartered in Zürich, Switzerland. It is one of the world's largest reinsurers, as measured by...
a German multinational financial services company headquartered in Hanover, Germany. Its core businesses include reinsurance, insurance and asset management...
shareholders' equity of $34.494 billion. The company was founded in 1872 as a reinsurance company under the name of "Versicherungs-Verein" and at the request of...
Columbia. In September 2012 Shelter announced the nko closure of Shelter Financial Bank. Though profitable, the announcement cited the additional costs associated...
capital management in non-life insurance ReinsuranceFinancialreinsuranceReinsurance Actuarial Premium Reinsurer Dividend yield PE ratio Bond valuation...
"the second gross" in dealerships that have adopted the model Reinsurance – Reinsurance is insurance sold to insurers themselves, to protect them from...
Manulife Financial Corporation (also known as Financière Manuvie in Quebec) is a Canadian multinational insurance company and financial services provider...
insurance and reinsurance group, acquired by Fairfax in 2015 Odyssey Re based in Stamford, Connecticut, underwrites treaty and facultative reinsurance as well...
Prudential Reinsurance, a subsidiary of Prudential Financial. In the 1990s, Prudential Financial considered selling or spinning off Prudential Reinsurance. On...
General Reinsurance Corporation is an American multinational property/casualty and life/health reinsurance company offering a range of reinsurance products...
employers to protect against unexpected losses. Financial reinsurance is a form of reinsurance that is primarily used for capital management rather than...
Russian National Reinsurance Company (RNRC) is the largest Russian reinsurance company. The Central Bank of Russia is a full shareholder of RNRC. The...
5%). Munich Reinsurance America American Modern Insurance Group Hartford Steam Boiler Inspection and Insurance Company Munich Reinsurance Trading LLC...
Company, a subsidiary of Allstate. In 2002, CNA exited the life, group and reinsurance business. On January 1, 2004, CNA sold its Group Benefits division to...
areas of finance, such as private equity, hedge funds, and reinsurance. Ancillary financial services include rating agencies, as well as provision of related...
The Hartford Financial Services Group, Inc., usually known as The Hartford, is a United States-based investment and insurance company. The Hartford is...
the sole nationalised reinsurance company in the Indian insurance market until the insurance market was open to foreign reinsurance players by late 2016...
Sun Life Financial Inc. is a Canadian financial services company. It is primarily known as a life insurance company. Sun Life has a presence in investment...
Malaysian Reinsurance Berhad (known as Malaysian Re) is a Malaysian reinsurance company. It is Malaysia's largest reinsurer, commanding more than 60%...
Financial - About Us". Country Financial. Global Insurance and Reinsurance Brokers Media related to Country Financial at Wikimedia Commons Official website...
provider of reinsurance, insurance and other related business services. The company operates in reinsurance, insurance and ventures. Reinsurance includes...
insurance products covering property and casualty, accident and health, reinsurance, and life insurance and is the largest publicly traded property and casualty...
Prudential Financial, Inc. is an American Fortune Global 500 and Fortune 500 company whose subsidiaries provide insurance, retirement planning, investment...
hazards and their impacts on the insurance company's financial well being such as business mix, reinsurance, asset allocation, profitability, solvency, and...
Re (in German Hannover Rück) is a reinsurance company based in Hannover, Germany. It is the third-largest reinsurance group in the world, with a gross...
Global Information