Transcript Download Handout 2

Casualty Actuarial Society
Reinsuring Small Regional Companies
May 7-8, 2007
Tim Madden
Business Leader – Swiss Reinsurance
Agenda
Slide 2

Definition of Regional Company

Profile of Regional Company Marketplace

Segment Appeal to Reinsurers

Underwriting Challenges

Expert Services

Summary
Regional Company Definition
Slide 3

Limited Geographic Focus

Traditional Product Offerings

Independent Agency or Exclusive Sales Force

Mutual or Stock Company Profile

Outwards Reinsurance Consistency
Regional Company Marketplace
Slide 4

2005 Data

DWP - $107 Billion

Ceded Premium - $12.9 Billion

Number of Ceding Companies - 506

Ceded Premium < $10 Million
- 308 Companies
- Aggregate Ceded Premium - $900 Million

Ceded Premium > $10 Million - $25 Million
- 88 Companies
- Aggregate Ceded Premium - $1.5 Billion
Segment Appeal to Reinsurers
Slide 5

Consistent Buying Philosophy

Traditional Lines in Well-Defined Market

Consistent Business Plan Execution

Stable Operating Results

Business Partnership
Underwriting Challenges
Slide 6

Data Limitations

Concentration
- Product Offerings
- Geographic

Attitude Towards Change

Constraints
- Rating Agency
- Regulatory
- Capital
Expert Services
Slide 7

Strong Reinsurer Ratings are Critical

Commitment to Provide Technical Support
- Underwriting, Claims, Actuarial, Regulatory, Legal,
IT, Risk Management, etc.

Value-Added Intellectual Property
- Publications, Webinars, Client Forums, Education
Platform, Market Research

Risk Management Solutions
- Customized for Regional Segment Needs

High Touch Point, Expensive to Service
Conclusion
Slide 8

“Small” Companies Represent
- Approximately 80% of Company Count
- Approximately 20% of Ceded Premium

Stable Segment of Industry

Relationship Oriented

Reinsurance Needs
- Need to Differentiate

Data Quality Issues

Commitment to Expert Service Delivery

Reputation as a Market for Regional Business –
Consistency is Key!