2016 Life Reinsurance Survey Results

Transcription

1 Image: used under license from shutterstock.com 2016 Life Reinsurance Survey Results David Bruggeman, FSA, MAAA AVP & actuary, individual life pricing

2 Disclaimer Munich Re prepared the survey on behalf of the Society of Actuaries Reinsurance Section as a service to section members. The contributing companies provide the numbers in response to the survey. These numbers are not audited and Munich Re, the Society of Actuaries and the Reinsurance Section take no responsibility for the accuracy of the figures Life Reinsurance Survey - May 10,

3 2016 Life Reinsurance Survey results Who: top U.S. & Canadian reinsurers What: individual & group new business (assumed) and in force Definitions Recurring: issued in same year as reinsured Portfolio: issued prior to year reinsured Retrocession: reinsurance not directly written by ceding company Reinsurance figures for individual life based on amount (NAR) and group life based on premium Note: some figures may not add due to rounding 2016 Life Reinsurance Survey - May 10,

4 U.S. individual life new business Image: used under license from shutterstock.com

5 A brief history U.S. individual life recurring new business # of Reinsurers Recurring NB $156B $268B $844B $422B Transamerica Occidental ($28B) Transamerica Re ($41B) RGA Re ($183B) SCOR ($97B) Top Reinsurers Lincoln National Life ($17B) General Re ($16B) Lincoln National Life ($34B) RGA Re ($24B) Scottish Re ($131B) Transamerica Re ($130B) Swiss Re ($90B) Munich Re ($70B) 2016 Life Reinsurance Survey - May 10,

6 U.S. individual life new business trend 25.0% Annual Percentage Change in U.S. Recurring New Business 15.0% 12.3% 5.0% -5.0% -15.0% -14.2% -5.7% -3.7% -9.4% -15.3% -8.7% -3.4% -0.5% -3.6% -4.6% -25.0% % Change -14.2% -5.7% -3.7% -9.4% -15.3% -8.7% -3.4% -0.5% -3.6% -4.6% 12.3% 2016 Life Reinsurance Survey - May 10,

7 U.S. recurring cession rate U.S. Billions 2,000 1,800 1,600 1,400 1,200 1, U.S. Ordinary Individual Life Insurance Sales % Reinsured 39.9% 36.1% 35.2% 34.2% 30.2% 27.6% 26.5% 27.0% 26.9% 24.7% 27.2% Amt Retained 1,089 1,207 1,212 1,148 1,168 1,211 1,234 1,197 1,163 1,240 1,223 Amt Reinsured Life Reinsurance Survey - May 10,

8 U.S. recurring by company top five companies 2016 Life Reinsurance Survey - May 10,

9 U.S. recurring by company next four companies Recurring Business ($ billions) 2016 Market Share Canada Life Canada Life 4% General Re 2% Optimum Re 2% Aurigen Aurigen 4% Top 5 88% General Re Life 9 10 Optimum Re Life Reinsurance Survey - May 10,

10 U.S. recurring by company ($ billions) All companies Top five companies continue to represent almost 90% of market share 2016 Life Reinsurance Survey - May 10,

11 YRT/coinsurance 2016 New Business 2016 In Force 20% 42% 80% 58% YRT Coinsurance YRT Coinsurance New business coinsurance levels have fallen from 37% in 2009 to 20% in Life Reinsurance Survey - May 10,

12 U.S. portfolio business ($ billions) U.S. Portfolio Business 1,200 1,000 1,042 U.S. $ (billions) Life Reinsurance Survey - May 10,

13 U.S. retrocession ($ billions) Life Reinsurance Survey - May 10,

14 Canada individual life new business Image: used under license from shutterstock.com

15 A brief history Canada individual life recurring new business # of Reinsurers Recurring NB $9B $17B $110B $153B Munich Re ($3B) Swiss Re ($4B) Munich Re ($49B) RGA Re ($49B) Top Reinsurers Canadian Re ($2B) Munich Re ($4B) RGA Re ($31B) Munich Re ($40B) St. Lawrence Re ($1B) RGA Re ($3B) Swiss Re ($26B) Swiss Re ($25B) 2016 Life Reinsurance Survey - May 10,

16 Canada recurring cession rate 300 Canadian Ordinary Individual Life Insurance Sales 200 Canadian Billions % Reinsured 75% 73% 77% 73% 71% 70% 65% 64% 64% 63% 60% Amt Retained Amt Reinsured Life Reinsurance Survey - May 10,

17 Canada recurring by company Recurring Business ($ billions) 2016 Market Share RGA Re Munich Re Swiss Re SCOR 13% Aurigen 10% Optimum Re 6% RGA Re 27% SCOR Global Life Aurigen Optimum Re Swiss Re 18% Munich Re 26% Life Reinsurance Survey - May 10,

18 Canada portfolio and retrocession Portfolio Munich Re: CA$40.7 billion Retrocession 2016 Life Reinsurance Survey - May 10,

19 Group business Image: used under license from shutterstock.com

20 Group business recurring business US In Force Premiums ($ millions USD) Canada In Force Premiums ($ millions CAD) 1, Life Reinsurance Survey - May 10,

21 U.S. group life in force premiums Canada Life 754 2,393 Munich Re 297 1,239 Hannover Swiss Re RGA Re Group Reinsurance Plus Other * Note: Other includes General Re, SCOR, Scottish Re, Berkshire Hathaway Group, Optimum Re and Pacific Life 2016 Life Reinsurance Survey - May 10,

22 Canada group life inforce premiums (CA$ millions) Munich Re 836 1,144 Swiss Re RGA Re Optimum Re 6 6 SCOR 2 2 Berkshire Hathaway Life Reinsurance Survey - May 10,

23 In closing Image used under license from istock.com

24 2016 overview U.S. Individual Life New Business Volumes ($ billions) Group Inforce Premiums ($ millions) % Change % Change Recurring % % Portfolio % 1,405 3, % Retrocession % 0 0 n/a Total 543 1, % 2,134 4, % Canada Recurring % % Portfolio % 1, % Retrocession % 0 0 n/a Total % 1, % 2016 Life Reinsurance Survey - May 10,

25 Looking ahead Image used under license from istock.com

26 Questions? Complete results: under Publications questions to 2016 Life Reinsurance Survey - May 10,