A Product of Value

The reinsurance product is based on the assumption and mitigation of the risk and volatility insurers face. A reinsurer transforms the uncertainty presented by the risk into the certainty of claims payment at an appropriate level of premium.

At PartnerRe, we know that our cedants approach their reinsurance needs intelligently, putting quality and value first. We follow three principles to provide value for our clients: we ensure consistent levels of capacity are available for offer; we conduct clear and open dialogue about where we stand in relation to our clients’ needs; and – above all – we maintain an unquestioned ability to pay claims.

Our business model anticipates the possibility of large losses, making sure we are ready to withstand them. We ensure stability through rigorous risk management processes, pricing discipline and strict limits on our potential exposures. We provide further assurance through a strong capital base and a prudent reserving philosophy. To ensure our cedants have an informed opinion of our balance sheet strength and integrity, we have published our reserve triangles and the value of discount in our reserves.

Not only should cedants have the security of knowing that their reinsurers will have the resilience to handle large losses, they should also know their reinsurer will be there at the next renewal, providing capacity in the turmoil that invariably follows such events. We have consistently demonstrated our ability to maintain or increase our capacity after major events. In 2001, following September 11, and again after the storms in 2005, PartnerRe continued to provide substantial capacity where and when it was most needed.

A solid understanding of our clients, their needs and their markets is critical in ensuring a product of value. We align specialized people and resources with our brokers and cedants, where we have the most impact. We engage our clients in discussion about their needs so we can find the most appropriate solutions, and our underwriters and actuaries have the necessary tools and skills to capture the data needed to reach informed decisions.

Through dialogue and openly sharing analysis and data, our cedants have the benefit of an independent view of their risk and an understanding of our risk parameters. When appropriate, we involve our pricing actuaries in discussions with clients, to give further context to how we perceive the exposure we are being asked to reinsure.

These principles are the basis on which we conduct our business — over the past five years and going forward. While we are the tenth largest reinsurer in terms of premiums, our brokers and cedants view us as a top-five reinsurer in both the U.S. and European markets. We view this as an indication that our business partners see value in their relationships with PartnerRe.