Consistency and client focus: VIG Re’s vision

“We don’t see a reason for a major change in what we’re doing,” Tobias Sonndorfer of VIG Re stated. 

As vice chairman of the board of directors at VIG Re and incoming CEO as of January 1, 2025, Sonndorfer spends his time focused on consistency and strategic client relationships.

Highlighting these as the guiding company principles in the current market environment, he elaborated: “For us, it’s about continuing what we’ve been doing over the last years: focusing on consistently delivering on our promises to our clients and stakeholders.

“This includes maintaining a disciplined approach to pricing and risk management,” he added.

The strategy of consistency comes amid a market where pricing pressure might be expected, but Sonndorfer is resolute that VIG Re will not compromise for short-term gains. 

“The landscape is scattered with some programmes being adjusted more than others and with some clients being more adaptive than others,” he explained. 

“We recognise the dynamic nature of the market, but we must not let that influence our technical judgement.”

“We will continue with our established approach into the renewals,” Sonndorfer said.

Renewing relationships 

One of VIG Re’s key strategies is to deepen relationships with existing clients, particularly in Continental Europe, and mature Asia. 

“Deepening means writing more shares on programmes where we already have a minor share, or expanding our participation across the panel,” Sonndorfer clarified. 

“If we believe pricing and structures are technically sustainable, and we understand the underwriting philosophy of our client, then we would want to do more,” he added.

Looking ahead to the upcoming renewals, Sonndorfer anticipates discussions will revolve around short-term developments, such as claims from recent events and the hurricane season. Next to this, he expects a continued dialogue on key topics such as PFAS but also on cyber exclusions. 

However, he expects, geopolitics and macroeconomic challenges such as claims inflation and the risk of supply chain disruption will be central topics.

“The fundamental drivers of the last two hard renewals haven’t disappeared,” Sonndorfer pointed out. “Again in 2023, the European reinsurance market faced above-average claims activity due to a series of nat cat events. This accumulation of events very much negatively affected European books, contrasting with the stronger performance of globally diversified reinsurers.

“The question marks around Ukraine and Russia, and high inflation in major markets, are still very much in play.”

“We want clients to choose us deliberately.” Tobias Sonndorfer

Despite these challenges, Sonndorfer remains focused on maintaining a client-centric approach, saying: “We’ve reached a good joint understanding with most of our clients. 

“The last two renewals showed significant adjustments resulting in an improved portfolio quality. Consequently the majority of our book is in a state we’re happy with, although there’s still room for refinement.” 

As VIG Re continues to evolve, the company’s goal is to become the “partner of choice” for clients, ensuring it is the first port of call.

“We want clients to choose us deliberately and to see us as a preferred partner in their placements,” Sonndorfer said. 

“That’s the next step in our journey.”

Sustainability in focus

Sonndorfer addressed the importance of talent and sustainability within the industry. 

“The industry is only as good as the people in it,” he remarked. “We strive to be an attractive place for the best talent, which is a challenge but crucial for our success.”

Sustainability is another key focus, according to Sonndorfer. “There are two angles: the reporting side—to what extent do we need to collect data differently from how we did it in the past—and also from a business opportunity standpoint,” he said. 

“There are so many new risks arising, such as climate change-related risks, and new technologies are being developed to manage them going forward.

“I would want the industry to focus on supporting this development and to be able to capture the opportunities stemming from the movement towards more sustainable societies.

“But we must also balance environmental and social aspects, particularly in regions such as Eastern Europe, where development levels differ,” he added.

VIG Re’s expansion into the European market has been cemented with its recent move to open an office in Munich, Germany. 

“This strategic move, combined with our existing presence in Paris, significantly enhances our ability to be physically close to our clients. Munich, renowned as an reinsurance hub, underscores our strong commitment to the region,” Sonndorfer concluded.

Tobias Sonndorfer is vice chairman of the board of directors at VIG Re. He can be contacted at: info@vig-re.com 

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