PartnerRe CEO, Jacques Bonneau, has suggested that while the firm remains a reinsurance-focused operation, its recently announced expanded direct insurance presence will provide opportunities to source and write risks that may not be available to it as a reinsurer and will complement its overall portfolio.
As part of a strategic review in 2021, PartnerRe decided to expand its direct insurance presence by building a portfolio of direct insurance business written through MGA partners.
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.
In the past, 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.
Bonneau commented, “We are in the business of measuring, pricing and managing risk to help reduce volatility for insurance companies and insureds.
“This entity allows us to underwrite direct insurance lines in the US market through partnerships with a very limited number of carefully vetted MGAs.”
Though, he added, “We look to play in predominantly niche areas that we are not already accessing via our insurance company clients and where there is little-to-no competition with our existing clients.”
It is no secret that reinsurers have been broadening their remit to write direct insurance business recently, especially through MGA partnerships, where firms can shorten the value chain and reinsure portfolios of risk more directly.
In PartnerRe’s case, this direct business may become a catalyst for further expansion, providing it with the chance to diversify its book further, alongside a chance to reap the benefits of strong P&C rates in the United States.
Bonneau was named President and CEO of PartnerRe in July 2020, and holds over four decades of experience in the industry.
