SID Re considers proportional and non-proportional treaty programs for insurers seeking sustainable capacity, earnings protection, catastrophe protection or more efficient management of their portfolios
Treaty opportunities are evaluated through a detailed review of:
- Historical underwriting performance
- Premium and claims development
- Exposure and accumulation information
- Catastrophe modelling
- Original underwriting standards
- Pricing and reserving adequacy
- Portfolio composition and diversification
- Claims practices
- Retention strategy
- Reinsurance structure
- Regulatory and capital requirements
- Alignment between the cedant and reinsurer
Potential Treaty Structures
Quota Share
A proportional arrangement under which an agreed share of premiums and losses is transferred to the reinsurer.
Quota-share structures may support new portfolios, additional underwriting capacity, capital management and strategic portfolio development.
Surplus
A proportional arrangement designed to provide additional capacity above the cedant’s chosen retention on individual risks.
Risk Excess of Loss
Protection against individual losses exceeding an agreed retention within a defined class or portfolio.
Catastrophe Excess of Loss
Protection against the accumulation of losses arising from a single catastrophe event, including selected natural and man-made perils.
Aggregate Excess of Loss
Portfolio protection responding when accumulated losses exceed a defined annual or contractual threshold.
Stop Loss
Protection intended to limit the effect of an adverse annual loss ratio or overall portfolio deterioration.
Catastrophe Aggregate Protection
Cover designed around the cumulative impact of multiple catastrophe events during the treaty period.
Multi-Line Treaty Solutions
Structures combining selected classes of business within one coordinated reinsurance programme.
Multi-Year Arrangements
Selected longer-term structures designed to provide continuity, stability and closer alignment between the cedant and reinsurer.
Portfolio and Whole-Account Solutions
Carefully structured protection across broader portfolios where the quality, diversification and performance of the underlying business can be adequately assessed.