11 August 2017Insurance

Munich Re, Gen Re strike reinsurance deal with Australia’s AMP

Australian financial services firm AMP said on Aug. 10 that it completed a reinsurance program with Munich Reinsurance Company of Australasia (Munich Re) and General Reinsurance Life Australia (Gen Re).

The new arrangements are set to release approximately A$500 million ($393.3 million) of capital from AMP Life (subject to regulatory approval) further reducing the capital intensity of the wealth protection business.

The new reinsurance deals include a new quota share agreement with Gen Re to cover 60 per cent of the National Mutual Life Association of Australasia (NMLA) retail portfolio, which was merged with AMP Life on Jan. 1, 2017.

AMP also extended the existing agreement with Munich Re to cover 60 per cent (up from 50 per cent) of the AMP Life retail portfolio.

A new surplus cover agreement with Gen Re is set to assist in managing risk and volatility in individual retail claims.

AMP also announced a recapture of 35 existing reinsurance treaties which aims to simplify AMP's overall reinsurance arrangements.

The new reinsurance agreements will commence on 1 November 2017 and, when combined with the first tranche of reinsurance completed in 2016, effectively means 65 percent of AMP's retail life insurance portfolio will be reinsured for claims incurred from Nov. 1, 2017, according to the statement.

Get the latest re/insurance news sent to your inbox every day -  Sign up to our free email newsletters

Today’s stories

Schinnerer Group snaps up Lloyd's property MGA ICAT

QBE appoints Chubb exec as new Malaysia CEO

Alesco taps Willis Towers Watson energy specialist Choppen

2017 hurricane season has potential to be 'extremely active'

Navigators names new leader of energy/engineering business

Demand for general insurance set to slow in the UK

Don't miss our insurtech email newsletter - sign up today

Already registered?

Login to your account

To request a FREE 2-week trial subscription, please signup.
NOTE - this can take up to 48hrs to be approved.

Two Weeks Free Trial

For multi-user price options, or to check if your company has an existing subscription that we can add you to for FREE, please email Elliot Field at efield@newtonmedia.co.uk or Adrian Tapping at atapping@newtonmedia.co.uk


More on this story

News
9 August 2017   Pressure on the reinsurance operations and investment income are increasingly weighing on Munich Re’s results, but the new CEO Joachim Wenning says that there is not much he can do about the main factors behind it as they are beyond the company’s control.