Benchmark Study on Reinsurers' Financial Communication
Initially, insurance companies sought partnerships with reinsurers to obtain protection or funding for the risks they endorsed. The role of reinsurance has continued to grow by offering a growing range of products: risk coverage, financial solutions (especially life), or specific products for a better capital management of ceding companies.
In addition, due to low interest rates, the insurance-linked securities (ILS) market has continued to grow. Reinsurers contribute significantly by promoting special purpose vehicles (SPVs) that issue death or catastrophe bonds. This type of product offers high returns since coupons are much higher than risk-free rates.
Mazars' insurance teams conducted a survey of 10 major global reinsurance companies, as well as put a great emphasis on their financial communication from 2017.
The purpose of this benchmark study is to provide readers with a comparative view on disclosures undertaken on specific matters of attention or specific events of the year such as NAT CAT events, as well as the impact of the US tax reform.
4 key scopes of the study
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