Underscoring our commitment: Introducing MS Reinsurance

Charles Goldie explains the rationale behind the rebranding of MS Amlin to MS Reinsurance…

MS Amlin

With the commitment to the reinsurance industry by third-party capital and significant reinsurers increasingly in question, one organisation is clarifying its role and strengthening its commitment to providing reinsurance.

MS Reinsurance is the new trading name of MS Amlin AG, a global reinsurer headquartered in Switzerland, with underwriting offices in Zurich, Bermuda, Miami and New York.

Traditional reinsurance is seen as steady and dependable: a foundation of strength which underpins the global economy. Yet, exits from the business by third-party capital providers, traditional reinsurers and a “quiet de-emphasis” by some hybrid players have shaken many reinsurance brokers and buyers.

MS Reinsurance is committed to growing and evolving with our clients, building on our long-standing underwriting expertise, understanding of client needs and strong shareholder investment to provide best-in-class service. As a global, pure-play reinsurer, our new name reflects and defines our place in the market.

What’s happened and what’s new?

There have been changes in the Amlin companies over the past few years. But a consistent thread is the backing of our shareholder, Mitsui Sumitomo Insurance Group, part of the MS&AD group, which is focused on growing its international business by building a market-leading global reinsurer. With a new leadership team led by Robert Wiest, formerly of Swiss Re, MS Reinsurance is well on its journey to achieving these aspirations.

The transition to MS Reinsurance is a natural evolution in establishing MS Amlin AG’s position in the market, and it will continue to offer the same products and services. As MS Reinsurance further develops, we are focused on building a well-diversified reinsurance portfolio. We plan to supplement our existing suite of product offerings with an increased presence in the US market as well as additional specialty offerings.

In order to serve clients well, it is important to understand their needs. A successful multi-line relationship requires close relationships with our clients and their closest advisors. To facilitate this, we will transition to local distribution channels for our US clients. With an established professional underwriting team and a clear strategic focus, we are well-positioned to support the needs and goals of our clients and potential clients.

What are the risks and opportunities in the market? And how will MS Reinsurance act as a reliable long-term risk partner for clients against this backdrop?

There are a few critical challenges in the industry starting with the shortage of property cat capacity. Property cat is a market where we have a long history. We are comfortable with the size of our current cat portfolio and look to deploy that capacity with our target clients. It is, however, not a growth area for us. We have little interest in unbalancing our portfolio with additional property cat exposure – even at substantially higher prices.

Secondly, the unknown path of inflation is another challenge in the market. Recently, we have spent quite a bit of time exploring how to build the current inflation situation into our risk analysis. And we expect our clients have as well. Reinsurance buyers who have thought through the impact of this unique time on their specific business(es) will certainly find themselves with a preferred status.

A third challenge in our industry is the volatility allergy. Reinsurance has typically served two main functions – providing capital support and helping to smooth volatility. With public equity markets harshly penalising volatility, it has become increasingly difficult for many reinsurers to offer the full suite of reinsurance products. We are confident that with our well-diversified portfolio we will be able to support the reinsurance needs for both capital-support purchasers and volatility-protection purchasers.

It has been inspiring to see the industry back together again, in person, in Monte Carlo to share ideas, build connections and consider the future. With a clear strategy, strong support from our shareholder and a talented, experienced underwriting team, MS Reinsurance stands ready to help our clients tackle the challenges in the market and build their businesses.

Charles Goldie is chief underwriting officer at MS Reinsurance (formerly MS Amlin AG)