As assumers of insurance, reinsurance and capital markets risk, diversification across products and geographies is central to our risk management framework and is key to our long-term stability. Our multidisciplinary approach to risk assumption allows PartnerRe to remain responsive to a changing environment — including regulatory requirements — and reduces our vulnerability to shock losses. Further, our ability to analyze and quantify risk, coupled with strong underwriting and capital markets capabilities, allows us to make intelligent risk selection, establish capital requirements with consistent and common metrics, understand and manage volatility and how risks aggregate, as well as establish limits for capital exposed to any type of risk.

Our Principles of Risk Assumption

  • Assume risk for appropriate return
  • Strategic capital attribution to most attractive risk classes
  • Multidisciplinary approach to risk assumption
  • Robust policies, processes and controls
  • Protect the company’s balance sheet from shock loss risks

Maximum Risk Limits
At December 31, 2013

Natural Catastrophe  |  Long Tail Reinsurance  |  Market Risk  |  Interest Rate |  Default and Credit Spread  |  Trade Credit Underwriting  |  Longevity  |  Pandemic  |  Agriculture Risk  |  Mortgage Risk  |  Current Deployed Capacity

 

Natural Catastrophe
Risk Metric Limit
Maximum aggregate exposure in any single zone on any single peril (net basis) $2.3 billion
Long Tail Reinsurance
Risk Metric Limit
Written premium limit for casualty and other long-tail lines for the four most recent calendar quarters $1.2 billion
Market Risk 
Risk Metric Limit
Maximum investment in Risk Assets (market value), with a sub-limit for equity and equity-like securities $3.4 billion
Sub-limit $2.8 billion
Interest Rate
Risk Metric Limit
Maximum duration of assets
*Current average duration is 2.6 years 
6.0 years
Default and Credit Spread
Risk Metric Limit
Maximum investment in standard fixed income credit securities (market value) $9.5 billion
Trade Credit Underwriting
Risk Metric Limit
Maximum loss from extreme scenario $0.9 billion
Longevity
Risk Metric Limit
Net present value loss from extreme mortality improvement scenario $2.0 billion
Pandemic
Risk Metric Limit
Maximum loss from extreme scenario $1.3 billion
Agriculture Risk
Risk Metric Limit
Maximum aggregate exposure in any single zone (net basis) $0.3 billion
Mortgage Risk
Risk Metric Limit
Maximum aggregate exposure in any single zone $0.7 billion
any one country sub limit $0.5 billion
Current Deployed Capacity
2013 Current Deployed Capacity