The reinsurance company is held responsible for the total amount of losses above a certain limit. In this case, if aggregate losses amount to $600,000, then the reinsurer will be responsible for $100,000.
This means that the ceding company and the reinsurer will share aggregate losses. By covering itself against excessive losses, an excess of loss reinsurance policy gives the ceding insurer more security for its equity and solvency.
It can also provide more stability when unusual or major events occur. Reinsurance also allows an insurer to underwrite policies that cover a larger volume of risks without excessively raising the costs of covering their solvency margins–the amount by which the assets of the insurance company, at fair values, are considered to exceed its liabilities and other comparable commitments.
In fact, reinsurance makes substantial liquid assets available for insurers in case of exceptional losses. Insurance Company, Ltd., a Bermuda limited liability corporation.
Insurance Company, Ltd., a corporation duly ------------ organized and validly existing under the laws of Bermuda, all of whose capital stock is owned by Excel. No liability will be accepted for any medical condition which originated before the date of enrollment or which was foreseeable at the time of application unless such medical condition has been declared to ALC Health in writing and accepted by Insurance Company SE.
Insurance means XL Specialty Insurance Company. We offer a full range of professional liability coverages to support your business and employees.
From Directors & Officers to Errors & Omissions, AXA XL has tailored solutions to meet the specific needs of a variety of businesses. We will keep listening, stay agile and reinvent solutions for complex and emerging risks with greater reach, strength and scale.
We provide a comprehensive and global vision of our customers risks based on an intimate understanding of business priorities and goals. AXA XL Americas CEO Joe Rocco shares how he and his team quickly adjusted when COVID-19 required changes to everyone's daily interactions and operations.
Learn how AXA XL continued to serve clients remotely and, in the process, found more opportunities to develop closer relationships and introduce new With experience analyzing, advising on and underwriting mergers, acquisitions and other corporate transactions, Michael McGowan has seen up close how deals can drive value for a variety of stakeholders.
Excel Limited was formed in 1986 in the Cayman Islands by 68 Fortune 500 companies following the financial crisis of the early 1980s. In June 1999, Bermuda-based XL Capital Ltd acquired the NAC Re Corp, a United States insurance and reinsurance company, for $1.25 billion, including $200 million in NAC Re debt.
Following the merger, the company established the subsidiary, XL America' in Stamford, Connecticut. In February 2001, the company acquired Winterthur International, an international property and casualty insurance unit that serves large businesses, from Credit Suisse for $600 million.
In March 2008, Mike McGillick was named chief executive officer of the company succeeding Brian O’Hara. In April 2015, the company introduced a new venture capital fund called XL Innovate for technology products in the financial services sector.
In May 2015, the company completed acquisition of Caitlin Group for $4.1 billion in cash and stock. In July 2016, the company changed its domicile from Ireland to Bermuda and its name changed from XL Group plc to XL Group Ltd.
Each region served by experts who know local regulations inside and out. Based in Sydney, Melbourne and Brisbane, Brooklyn is an AXA XL Platform through which we offer customized market specific solutions that are supported by a specialist underwriting team with recognized experience in SME Financial Lines, General Liability and Property.
Caitlin Australia PTY Ltd offers customized market specific solutions that are supported by a specialist underwriting team with recognized experience in SME Financial Lines, General Liability and Property. Indian Harbor Insurance Company is a US-based, non-admitted excess and surplus lines' carrier that offers property and casualty products.
Insurance America, Inc., is a US-based admitted insurer that offers property and casualty products. XL Bermuda Ltd is a Bermuda exempted company that provides tailored coverages for complex corporate risks and professional lines.
Insurance Company SE is an Irish-domiciled insurer with branches throughout the EU as well as Australia, Hong Kong and Singapore that primarily writes global risk management property and casualty insurance for large national and multinational corporations as well as professional indemnity, environmental and specialty products.> More XL Euros México, S.A. DE C.V. is a Mexican-domiciled insurer that primarily writes the Mexican risks that form part of property and casualty global insurance programs.
It also writes property, casualty, marine and specialty risks for Mexico-domiciled companies. Insurance Switzerland Ltd (CLIS) and Insurance Company SE, London, Zurich Branch (Alice ZH) are Swiss-domiciled insurers that primarily write large account property and casualty business for Swiss corporations.
XL London Market Ltd was a managing agent at Lloyd's. XL Select Insurance Company is a US-based, non-admitted excess and surplus lines' carrier offering property and casualty products.
The primary syndicate managed by Coal is Syndicate 2003 (wholly supported by AXA XL corporate members at Lloyd's), which writes a full range of property, casualty, marine, aviation and other specialty coverages. Angel Risk Management Ltd is an FCA authorized and regulated intermediary (wholly owned by AXA XL) providing online insurance solutions for small-to-medium sized enterprises.
Insurance is a fact of life if you own an auto, home or business. We carry a full line of insurance products….like Personal or Commercial Auto, Home, Life, Personal or Business Umbrellas, we also offer individual or group Health.
For information:Call X/L Insurance phone: (303) 426-9605 Fax: (303) 426-0848 Office Hours 9am to 6pm Monday – Friday In the classic case, reinsurance allows insurance companies to remain solvent after major claims events, such as major disasters like hurricanes and wildfires.
In addition to its basic role in risk management, reinsurance is sometimes used to reduce the ceding company's capital requirements, or for tax mitigation or other purposes. Underwriting expenses, and in particular personnel costs, are higher for such business because each risk is individually underwritten and administered.
Reinsure can make an insurance company's results more predictable by absorbing large losses. This is likely to reduce the amount of capital needed to provide coverage.
The income smoothing arises because the losses of the pedant are limited. This fosters stability in claim payouts and caps indemnification costs.
The reinsurer may have some intrinsic cost advantage due to economies of scale or some other efficiency. Reinsurers may operate under a more favorable tax regime than their clients.
Reinsurers will often have better access to underwriting expertise and to claims experience data, enabling them to assess the risk more accurately and reduce the need for contingency margins in pricing the risk Even if the regulatory standards are the same, the reinsurer may be able to hold smaller actuarial reserves than the pedant if it thinks the premiums charged by the pedant are excessively conservative. Depending on the regulations imposed on the reinsurer, this may mean they can hold fewer assets to cover the risk.
The reinsurer will also wish to apply this expertise to the underwriting in order to protect their own interests. This would make its results more predictable on a net basis (i.e. allowing for the reinsurance).
This is usually one of the objectives of reinsurance arrangements for the insurance companies. In addition, the reinsurer will allow a “ceding commission to the insurer to cover the costs incurred by the ceding insurer (mainly acquisition and administration, as well as the expected profit that the pedant is giving up).
Under a quota share arrangement, a fixed percentage (say 75%) of each insurance policy is reinsured. Under a surplus share arrangement, the ceding company decides on a “retention limit”: say $100,000.
The ceding company may seek a quota share arrangement for several reasons. For example, it may only be able to offer a total of $100 million in coverage, but by reinsuring 75% of it, it can sell four times as much, and retain some profits on the additional business via the ceding commission.
The ceding company may seek surplus reinsurance to limit the losses it might incur from a few large claims as a result of random fluctuations in experience. If they issue a $200,000 policy, they would give (cede) half of the premiums and losses to the reinsurer (1 line each).
The maximum automatic underwriting capacity of the pedant would be $1,000,000 in this example. Under non-proportional reinsurance the reinsurer only pays out if the total claims suffered by the insurer in a given period exceed a stated amount, which is called the “retention” or “priority”.
In per risk, the pedant's insurance policy limits are greater than the reinsurance retention. These contracts usually contain event limits to prevent their misuse as a substitute for Catastrophe XL's.
In catastrophe excess of loss, the pedant's retention is usually a multiple of the underlying policy limits, and the reinsurance contract usually contains a two risk warranty (i.e. they are designed to protect the pedant against catastrophic events that involve more than one policy, usually very many policies). For example, an insurance company issues homeowners' policies with limits of up to $500,000 and then buys catastrophe reinsurance of $22,000,000 in excess of $3,000,000.
Aggregate covers can also be linked to the pedant's gross premium income during a 12-month period, with limit and deductible expressed as percentages and amounts. The insurer knows there is coverage during the whole policy period even if claims are only discovered or made later on.
Insurance coverage is provided for losses occurring in the defined period. Most of the above examples concern reinsurance contracts that cover more than one policy (treaty).
Facultative reinsurance can be written on either a quota share or excess of loss basis. Facultative reinsurance contracts are commonly memorialized in relatively brief contracts known as facultative certificates and often are used for large or unusual risks that do not fit within standard reinsurance treaties due to their exclusions.
The reinsurer's liability will usually cover the whole lifetime of the original insurance, once it is written. However, the question arises of when either party can choose to cease the reinsurance in respect of future new business.
A continuous contract has no predetermined end date, but generally either party can give 90 days notice to cancel or amend the treaty for new business. It is common for insurers and reinsurers to have long-term relationships that span many years.
However, even most reinsurance treaties are relatively short documents considering the number and variety of risks and lines of business that the treaties reinsure and the dollars involved in the transactions. The fronting insurer is taking a risk in such transactions, because it has an obligation to pay its insurance claims even if the reinsurer becomes insolvent and fails to reimburse the claims.
Risk managers monitor reinsurers' financial ratings (S&P, A.M. Best, etc.) Because of the governance effect insurance /cement companies can have on society, reinsurers can indirectly have societal impact as well, due to reinsurer underwriting and claims philosophies imposed on those underlying carriers which affects how the cements offer coverage in the market.
^ “The Breadth and Scope of the Global Reinsurance Market and the Critical Role Such Market Plays in Supporting Insurance in the United States” (PDF). ^ Powers, M. R. and Rubik, M., 2006, “A 'Square-Root Rule' for Reinsurance,” Re vista de Contabilidade e Finances (Review of Accounting and Finance), 17, 5, 101-107.
Evidence from Several National Markets,” Journal of Risk Finance, 6, 4, 319-334. ^ Marcos Antonio Mendoza, “Reinsurance as Governance: Governmental Risk Management Pools as a Case Study in the Governance Role Played by Reinsurance Institutions”, 21 Conn. Ins.