Global reinsurer PartnerRe is planning an expansion into direct lines of insurance program business through MGA relationships in the United States.
PartnerRe has secured an AM Best rating for its Bermuda entity PartnerRe Insurance Solutions Bermuda Ltd.
AM Best assigned a Financial Strength Rating of A+ (Superior) and a Long-Term Credit Rating of “aa-” (Superior) to PartnerRe Insurance Solutions Bermuda Ltd., both stable in their outlook.
Historically, PartnerRe Insurance Solutions Bermuda has assumed a quota share of affiliated life business from the other entities of the PartnerRe group.
That quota share reinsurance arrangement is expected to remain in place, however, the vehicle is set to become even more useful to the parent, by helping PartnerRe diversify through expansion into direct insurance markets in the US.
PartnerRe Insurance Solutions Bermuda has recently been licensed to expand into non-life lines of business.
The plan is to expand this entity to underwrite direct property/casualty insurance lines in the U.S. market, through partnerships with managing general agents.
Reinsurers have been broadening their remit to write direct insurance business recently, especially through MGA partnerships, where they can shorten the value chain and reinsure portfolios of risk more directly.
With PartnerRe’s appetite to grow, this direct business could become a catalyst for the company’s expansion, providing it synergies and efficiencies through diversifying its book further, alongside a chance to reap the benefits of strong P&C rates in the US.
