AIG’s reinsurance wing cut property cat at January renewals to de-risk book

AIG’s reinsurance business followed an industry trend for de-risking at the January renewals, heading chiefly into casualty and specialty, while avoiding property catastrophe risk, officials acknowledged Thursday (February 17).

" AIG Re strategically took the opportunity to further de-risk and rebalance the portfolio away from property catastrophe due to our view of less than adequate returns in that space," Mark Lyons (pictured), AIG's global chief actuary and head of portfolio management, told the Q4 earnings call.

Casualty and specialty lines dominated the January positioning at AIG's reinsurance unit and AIG "expects to continue that trend".

AIG Re additionally reduced limits in US property and took some $1 billion in retrocession coverage, rendering peak US probable maximum loss (PML) "down meaningfully", Lyon said.

Did you get value from this story?  Sign up to our free daily newsletters and get stories like this sent straight to your inbox.