Istanbul, Turkey domiciled reinsurance company, Türk Reasürans A.Ş, recorded underwriting premium of TRY 723 million (approx. USD 90mn) in the first nine months of the year, as the firm reports solid progress during its first year of operations.
With the aim of contributing to the objectives of the country’s New Economic Program, the reinsurer also launched with a goal to increase the volume of local reinsurance capacity and to ensure resource efficiency.
The reinsurer has now completed its first year of operations, and according to the entity’s General Manager, Selva Eren, reached an underwriting premium of TRY 723 million in nine months, while the year-end target is to exceed the TRY 1 billion (approx. USD 125mn) mark.
Additionally, notes Eren, the period profit as of September 30th, 2020 was TRY 101 million (approx. USD 13mn), with a robust third-quarter combined ratio of 80%.
Commenting on the company’s performance, Eren said: “We have reached our target of becoming a reliable business partner despite the conditions and the period. We owe this to our team comprised of the professionals of the insurance market and to our responsive and agile management approach which pays great importance to shared wisdom.”
She continued to explain that the firm has already participated in the reinsurance treaties of 17 insurance companies, and that it intends to boost its capacity in such treaties in the coming months and maintain its support for the marketplace.
“As of January, we have started to provide facultative capacity for the industry. Moreover, we have undertaken the technical operations of the Turkish Catastrophe Insurance Pool (TCIP). We will launch several projects to further contribute to this invaluable institution,” she added.
As highlighted by Eren, one of the largest catastrophic exposures that threatens Turkey is earthquake risk.
The TCIP acts as the earthquake insurer of last resort across the country, providing government-backed, compulsory earthquake insurance for property owners. In her speech, Eren emphasised the importance of the management, transfer and efficient modelling of earthquake risk in the country.
“Recently, we have undertaken the technical operations of TCIP. Our biggest priority for the period ahead is strengthening reinsurance protection by evaluating the results of the modelling. The “catastrophic modelling platform”, which is one of our most important projects, is going to be built in line with the most technologically advanced architectural principles, and it will be a part of our lives as a solution offering a detailed simulation capacity,” explained Eren.
“In addition, together with responsible public institutions, we will be supporting the inventory-taking project that covers all buildings across the country. Furthermore, we have made investment decisions that will be facilitative for serious readiness in all fields, particularly in technological infrastructure, to be able to immediately manage any possible damage. We are also continuing our efforts to raise public awareness rapidly and effectively,” she continued.
In what’s been a busy and successful inaugural year for the firm, Türk Reasürans has contributed to the reinsurance activities of numerous important bodies in the local market, including Tarsim – the Agricultural Insurance Pool – and has partaken in reinsurance arrangements.
Furthermore, the reinsurer has also been assigned to the management of the Extraordinary Risks Management Center (ERMC). Importantly, and as explained by Eren, the financial products that both the market and public institutions sought were introduced.
“This was the result of a good cooperation among the global and the local reinsurers,” said Eren.
Expanding on this, she explained that the first step for the firm was to create the reinsurance structure of state-backed credit insurance under the roof of the ERMC.
“State-backed credit insurance has been redesigned by the support of Türk Reasürans A.Ş and other reinsurers. Hence, we have helped introduce it to a larger audience.
“We at Türk Reasürans A.Ş will continue to make a difference for our country and the market,” said Eren.