Allianz may tweak aggregate reinsurance levels at renewal: CFO Terzariol

Allianz may tweak aggregate reinsurance levels at renewal: CFO Terzariol

” We may do some tweaking, to the aggregate level,” he stated. “So thats more about the accessory point, the capability. Essentially we are not altering our reinsurance structure.”

Allianz plans to make some tweaks to its catastrophe reinsurance arrangements at the renewals, although total its reinsurance plans are expected to stay essentially the same, the insurers CFO Giulio Terzariol stated yesterday.Speaking after Allianz revealed its outcomes for the third-quarter and very first nine-months of 2021, a period when the international insurer experienced significant catastrophe losses, Terzariol said he likewise expects some upwards pressure on reinsurance pricing when the renewal is finished.
As we explained the other day, Allianz ceded a significant percentage of its losses from the European flooding in Q3 2021 to its reinsurance partners, potentially around the EUR700 million mark.
Allianz had formerly exposed its gross losses from the flood would be around the EUR1.1 billion mark, with reinsurance likely getting the bulk for the company.
Then, in its outcomes statement, Allianz revealed its net loss from the flooding as being EUR400 million.
Extra losses were likely ceded associated to hurricane Ida also, so the insurance companies reinsurance program partners definitely proved their worth in the last quarter.
Inquired about whether the loss experience would drive any tactical changes to Allianzs reinsurance program plans, Terzariol said they wont be substantial, but that he is expecting costs to rise.
” Weve been looking at our reinsurance structure, because clearly we understand that there will be an increase in premium, in reinsurance premium, coming our way. So we have actually taken a look at various reinsurance structures.
” But at the end of the day we accomplished the conclusion that our reinsurance program is quite good. We are comfy with the program.”
One area that is set to get some attention though, is Allianzs aggregate reinsurance coverage, which Terzariol stated may include “some tweaking”.
” We may do some tweaking, to the aggregate level,” he stated. “So thats more about the attachment point, the capability. But essentially we are not altering our reinsurance structure.”
He went on to discuss his rate expectations for the renewals, saying, “From a rates viewpoint, I would state we are normally an extremely excellent account, so from that point of view, yes we expect to see some increases, but in our case, given that we are an excellent account, boosts must be more moderate.
” Anyway these are price boosts that we are going to put into our estimations for our premiums. So from that point of view we have evaluated various choices, however ultimately its going to be practically service as typical with regard to our reinsurance program, simply with some tweaking.
” Right now we are going through the negotiations, so lets see what comes out of them.”

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