{"id":353,"date":"2025-08-19T10:00:33","date_gmt":"2025-08-19T10:00:33","guid":{"rendered":"http:\/\/www.ateliersfurrer.com\/?p=353"},"modified":"2025-08-19T13:29:39","modified_gmt":"2025-08-19T13:29:39","slug":"life-reinsurance-serves-as-vital-diversification-mechanism-for-big-four-am-best","status":"publish","type":"post","link":"http:\/\/www.ateliersfurrer.com\/index.php\/2025\/08\/19\/life-reinsurance-serves-as-vital-diversification-mechanism-for-big-four-am-best\/","title":{"rendered":"Life reinsurance serves as vital diversification mechanism for Big Four: AM Best"},"content":{"rendered":"

AM Best has noted that life protection reinsurance, driven largely by the US market, has been a key element of the European Big Four reinsurers\u2019 risk profiles, providing diversification and earnings stability, with typical margins of 5%\u201310%.<\/p>\n

\"am-best-logo\"\u201cThis reduces the volatility inherent in reinsurers\u2019 earnings, providing some offset against the more volatile P&C portfolio,\u201d the rating agency explained.<\/p>\n

However, AM Best cautioned that life reinsurance is a long-tail business, and any significant shift in mortality trends could materially impact profitability.<\/p>\n

\u201cWhile the life portfolio continues to perform well, there have been cases of higher mortality experience on back books,\u201d AM Best said.<\/p>\n

The rating agency continued, \u201cGenerally, these adverse developments are offset by higher quality new business. Although post-COVID mortality trends were higher, there is an expectation that actual versus expected mortality will rebalance to historical norms.\u201d<\/p>\n

\n
\n

\"Register<\/a><!–\"Download<\/a>–><\/p>\n<\/div>\n<\/div>\n

Elsewhere, AM Best underlined the fact that several market-leading reinsurers have undertaken assumption reviews, leading to reductions in their Contractual Service Margins.<\/p>\n

Readers may recall that, for the full year 2024, the French reinsurer SCOR\u2019s net income, excluding the mark-to-market impact of the option on own shares, decreased by 98.6% to \u20ac11 million<\/a>, as the contractual service margin fell 8.9% to \u20ac4.1 billion.<\/p>\n

The decline in net income for the year reflected the impacts of the outcome of the 2024 L&H assumption review, accounting for \u20ac-700 million in insurance service result and \u20ac-900 million in contractual service margin.<\/p>\n

These reviews were described as one-offs and necessary to align assumptions with updated experience. SCOR reported a rise in net income to \u20ac226 million in Q2 2025, reversing the loss of \u20ac308 million recorded in Q2 2024<\/a>.<\/p>\n

The broader life portfolios across major reinsurers have also remained profitable, which you can read more about here<\/a>.<\/p>\n

AM Best concluded, \u201cWith favourable interest rate conditions and rising demand for longevity and mortality coverage, life reinsurance continues to serve as a vital diversification mechanism, offering consistent returns even as volatility rises elsewhere.\u201d<\/p>\n

The post Life reinsurance serves as vital diversification mechanism for Big Four: AM Best<\/a> appeared first on ReinsuranceNe.ws<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

AM Best has noted that life protection reinsurance, driven largely by the US market, has been a key element of the European Big Four reinsurers\u2019 risk profiles, providing diversification and earnings stability, with typical margins of 5%\u201310%. \u201cThis reduces the…<\/p>\n","protected":false},"author":1,"featured_media":355,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[11],"tags":[],"_links":{"self":[{"href":"http:\/\/www.ateliersfurrer.com\/index.php\/wp-json\/wp\/v2\/posts\/353"}],"collection":[{"href":"http:\/\/www.ateliersfurrer.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.ateliersfurrer.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.ateliersfurrer.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.ateliersfurrer.com\/index.php\/wp-json\/wp\/v2\/comments?post=353"}],"version-history":[{"count":3,"href":"http:\/\/www.ateliersfurrer.com\/index.php\/wp-json\/wp\/v2\/posts\/353\/revisions"}],"predecessor-version":[{"id":357,"href":"http:\/\/www.ateliersfurrer.com\/index.php\/wp-json\/wp\/v2\/posts\/353\/revisions\/357"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/www.ateliersfurrer.com\/index.php\/wp-json\/wp\/v2\/media\/355"}],"wp:attachment":[{"href":"http:\/\/www.ateliersfurrer.com\/index.php\/wp-json\/wp\/v2\/media?parent=353"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.ateliersfurrer.com\/index.php\/wp-json\/wp\/v2\/categories?post=353"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.ateliersfurrer.com\/index.php\/wp-json\/wp\/v2\/tags?post=353"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}