2015 catastrophe reinsurance in romania - acasă -...
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1Proprietary & Confidential
2015 Catastrophe Reinsurance in RomaniaJuly 2015
2Proprietary & Confidential
Data Used
� Data used for 2015 Renewals
� 12 companies representing 83.66% of the market:
– Based on 2014 Overall property premium (Insurance Profile no. 1/2015)
� UNSAR members only purchase combined CAT XL capacity of EUR 1.45bn
FGU Capacity
1,045
909
RMS 1in250 As IF Vrancea
1977*
In E
UR
m
1,451
* Based on RMS for Romania (UNSAR members);
3Proprietary & Confidential
Catastrophe Reinsurance Capacity Benchmark – Return Period of Major Peril
� Romanian Catastrophe purchase is in line with other countries*
285
376
280283287
176
500
175
243
550
361
Slovakia
FL
Bulgaria
EQ
Group
Covers
Turkey
EQ
Greece
EQ
Cyprus
EQ
Portugal
EQ
Poland
FL
Romania
EQ
Israel
EQ
Czech
Rep FL
Hungary
EQ
2,200
* Return Period Calculated based on RMS for Romania (UNSAR members);
4Proprietary & Confidential
Reinsurers’ Ratings on 2015 Romanian CAT XLs – External Market Placement
14.1%
BBB
0.1%
A-
AA-29.0%
AA
5.8%
23.5%A
A+
27.4%
* Rating by S&P (AM Best where S&P unavailable)
5Proprietary & Confidential
Catastrophe Events are covered by Reinsurers
More than 50% Reinsured
6Proprietary & Confidential
Reinsurance protects financial stability of Insurers
2002 Czech Market Flood Claims (in USD)
449,611,774
1,416,875,283
200,000,000
400,000,000
600,000,000
800,000,000
1,000,000,000
1,200,000,000
1,400,000,000
1,600,000,000
Czech 2001 Property
Premium (Household and
Industrial Commercial)
Gross 2002 Flood Loss
Paid by Reinsurers
97%
Paid by Czech
Insurers 3%
Czech Floods 2002‒ Vlatva river burst banks
‒ Prague submerged 3 meters
‒ Worst flooding seen in over a century
7Proprietary & Confidential
Reinsurers provide quick cash flow in Cat events
Hurricance Katrina 2005
‒ Total Estimated Insured Loss USD 75bn
‒ Flooded 80% of New Orleans
‒ Almost 2,000 people killed
4.80%
13%
6.50%
17.0%
40.0%
0% 10% 20% 30% 40% 50%
26-30 Days
21-25 Days
16-20 Days
11-15 Days
0-10 Days
Hurricane Katrina (2005)Average Settlement Speed of Lloyd’s Reinsurers
8Proprietary & Confidential
Disclaimer
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