Maximum Risk Limits

We seek to protect the Company’s balance sheet from shock loss risks – those assumed risks that can materially impair our balance sheet. There are four areas of risk that the Company has currently identified as having the greatest potential for shock losses: catastrophe, reserving for casualty and other long-tail lines, equity and equity-like investment risk and longevity risk. The Company manages the risk of shock losses by setting risk appetite and limits, as shown below, for each type of shock loss.


At September 30, 2011

Catastrophe Risk Limits




Casualty Reserve Risk Limit




Equity Investment Risk Limit




Longevity Risk Limit




Exposures at September 30, 2011