2016 life reinsurance survey presentation · 2016 life reinsurance survey presentation subject: pdf...

2016 Life Reinsurance Survey Results

David Bruggeman, FSA, MAAAAVP & actuary, individual life pricing

Image: used under license from shutterstock.com

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.

2016 Life Reinsurance Survey - May 10, 2017 2© 2017 Munich American Reassurance Company. All Rights Reserved.

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


U.S. individual life new business


A brief history… U.S. individual life recurring new business


# of Reinsurers 30 25 15 9

Recurring NB $156B $268B $844B $422B

Top Reinsurers

Transamerica Occidental ($28B)

Lincoln National Life ($17B)

General Re ($16B)

Transamerica Re ($41B)

Lincoln National Life ($34B)

RGA Re ($24B)

RGA Re ($183B)

Scottish Re ($131B)

Transamerica Re ($130B)

SCOR ($97B)

Swiss Re ($90B)

Munich Re ($70B)

2015200519951986

U.S. individual life new business trend


2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016% Change -14.2% -5.7% -3.7% -9.4% -15.3% -8.7% -3.4% -0.5% -3.6% -4.6% 12.3%

-14.2%

-5.7%-3.7%

-9.4%

-15.3%

-8.7%

-3.4%-0.5%

-3.6% -4.6%

12.3%

-25.0%

-15.0%

-5.0%

5.0%

15.0%

25.0%Annual Percentage Change in U.S. Recurring New Business

U.S. recurring cession rate


0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016% 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 1,223Amt Reinsured 724 683 658 596 505 461 445 443 427 407 457

U.S

. Bill

ions

U.S. Ordinary Individual Life Insurance Sales

U.S. recurring by company – top five companies


U.S. recurring by company – next four companies


9

9

17

17

8

10

19

11

Optimum Re

General Re Life

Aurigen

Canada Life

2015 2016

Top 588%

Aurigen4%

Canada Life 4%

General Re2%

Optimum Re2%

Recurring Business ($ billions) 2016 Market Share

U.S. recurring by company ($ billions)All companies


Top five companies continue to represent almost 90% of market share

YRT/coinsurance


80%

20%

YRT Coinsurance

2016 New Business 2016 In Force

58%

42%

YRT Coinsurance

New business coinsurance levels have fallen from 37% in 2009 to 20% in 2016

U.S. portfolio business ($ billions)


39 102

35

257

777

94

1,042

344

628

238

130

729

-

200

400

600

800

1,000

1,200

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

U.S

. $ (b

illio

ns)

U.S. Portfolio Business

U.S. retrocession ($ billions)

34 30 29 15 7 8 7 9

203

5 8 -

50

100

150

200

250

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 20162016 Life Reinsurance Survey - May 10, 2017 13© 2017 Munich American Reassurance Company. All Rights Reserved.

Canada individual life new business


A brief history …Canada individual life recurring new business


# of Reinsurers 14 14 7 6

Recurring NB $9B $17B $110B $153B

Top Reinsurers

Munich Re ($3B)

Canadian Re ($2B)

St. Lawrence Re ($1B)

Swiss Re ($4B)

Munich Re ($4B)

RGA Re ($3B)

Munich Re ($49B)

RGA Re ($31B)

Swiss Re ($26B)

RGA Re ($49B)

Munich Re ($40B)

Swiss Re ($25B)

2015200519951986

Canada recurring cession rate

16© 2017 Munich American Reassurance Company. All Rights Reserved.

0

100

200

300

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016% Reinsured 75% 73% 77% 73% 71% 70% 65% 64% 64% 63% 60%Amt Retained 48 52 46 55 63 66 81 79 80 90 107Amt Reinsured 141 139 150 152 153 153 149 143 142 153 160

Can

adia

n B

illio

ns

Canadian Ordinary Individual Life Insurance Sales

2016 Life Reinsurance Survey - May 10, 2017

Canada recurring by company


7

15

21

29

41

44

7

14

18

25

40

49

Optimum Re

Aurigen

SCOR Global Life

Swiss Re

Munich Re

RGA Re

2015 2016

RGA Re27%

Munich Re26%

Swiss Re 18%

SCOR13%

Aurigen10%

Optimum Re6%

Recurring Business ($ billions) 2016 Market Share

Canada portfolio and retrocession


Munich Re: CA$40.7 billion

Portfolio Retrocession

Group business


Group business – recurring business


476546

646691

728798

0

200

400

600

800

1,000

2011 2012 2013 2014 2015 2016

107102 103 105

101 104

0

50

100

2011 2012 2013 2014 2015 2016

US In Force Premiums ($ millions USD) Canada In Force Premiums ($ millions CAD)

U.S. group life in force premiums


58

39

156

346

507

1,239

2,393

64

34

110

328

547

297

754

Other *

Group Reinsurance Plus

RGA Re

Swiss Re

Hannover

Munich Re

Canada Life

2015 2016

Note: Other includes General Re, SCOR, Scottish Re, Berkshire Hathaway Group, Optimum Re and Pacific Life

Canada group life inforce premiums (CA$ millions)


0.1

2

6

22

25

836

0.1

2

6

23

25

1,144

Berkshire Hathaway

SCOR

Optimum Re

RGA Re

Swiss Re

Munich Re

2015 2016

In closing…

Image used under license from iStock.com

2016 overview


Individual LifeNew Business Volumes ($ billions)

GroupInforce Premiums ($ millions)

2015 2016 % Change 2015 2016 % Change

U.S.

Recurring 407 457 12% 728 798 10%

Portfolio 130 729 459% 1,405 3,938 180%

Retrocession 5 8 61% 0 0 n/a

Total 543 1,194 120% 2,134 4,737 122%

Canada

Recurring 153 159 4% 101 104 3%

Portfolio 3 41 1131% 1,098 786 -28%

Retrocession 2 6 240% 0 0 n/a

Total 158 206 30% 1,241 885 -26%

Looking ahead

Image used under license from iStock.com

Questions?

Complete results: www.munichre.com/us/life under “Publications”

E-mail questions to [email protected]


http://www.munichre.com/us/life

2016 life reinsurance survey presentation · 2016 life reinsurance survey presentation subject: pdf...

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