French mutual reinsurance company, Mutuelle Centrale de Réassurance (MCR) and Toa Re Europe, the European subsidiary of the Japanese reinsurer, have entered into a multi-year quota share reinsurance agreement, designed to strengthen the former’s diversification and support the latter’s growth plans.
This strategic partnership enables a progressive scale-up over a three year term, which allows both MCR and Toa Re Europe to adjust their strategy while establishing a long-term relationship.
For MCR, this multi-year quota share reinsurance treaty provides its portfolio with unprecedented geographical diversification, offering access to more than 200 ceding companies in numerous regions.
The agreement also enables MCR to expand into new classes of business, with the firm highlighting cyber and credit and surety as notable lines.
Further, Toa Re Europe’s portfolio is highly complimentary to MCR’s current book, says the firm, and the mutual reinsurer expects this new partnership to also bring capabilities development on risks with high growth potential.
Jérôme Sennelier, CEO of MCR, said: “This partnership perfectly illustrates our strategy of controlled and diversified growth in reinsurance. Toa Re Europe brings recognised expertise and access to markets that complement our own, while we provide the capacity necessary for their development. It is a win-win agreement.”
Philippe Regazzoni, CEO of Toa Re Europe, added: “MCR is an ideal strategic partner for Toa Re Europe. Its stability, professionalism, strong capitalisation, and long-term focus align perfectly with our underwriting philosophy. This partnership has been established with a clear vision of creating long-term value for both parties.”
