2017 life reinsurance survey presentation...2017 life reinsurance survey results nancy m. kenneally,...

2017 Life Reinsurance Survey Results

Nancy M. Kenneally, FSA, MAAAVP Reinsurance Marketing

Image: used under license from shutterstock.com

Disclaimer

Munich Re prepared this survey on behalf of the Society of Actuaries Reinsurance Section as a service to section members. The contributing companies provide the data in response to the survey. The data is not audited and Munich Re, the Society of Actuaries and the Reinsurance Section take no responsibility for the accuracy of the figures.

2017 Life Reinsurance Survey 2© 2018 Munich American Reassurance Company. All Rights Reserved.

2017 Life Reinsurance Survey results

Who: top U.S. & Canadian reinsurers

What: individual and 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


Reinsurance landscape


$457

$729

$8

$498

$169

$7$0

$100$200$300$400$500$600$700$800

Recurring Portfolio Retrocession

U.S. IL New Business Volumes ($ Billions)

$160

$41

$6

$168

$0 $9$0

$20$40$60$80

$100$120$140$160$180

Recurring Portfolio Retrocession

Canada IL New Business Volumes ($CA Billions)

$798

$3,938

$777

$3,462

$0$500

$1,000$1,500$2,000$2,500$3,000$3,500$4,000$4,500

Recurring Portfolio

U.S. Group In Force Premium ($ Millions)

$104

$786

$104

$835

$0$100$200$300$400$500$600$700$800$900

Recurring Portfolio

Canada Group In Force Premium ($CA Millions)

2016 2017

+9% -77%

+5% -100% +54%

-3% -12%

0% +5%

-12.5%

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 $498B

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 ($105B)

Swiss Re ($96B)

Munich Re ($92B)

2017200519951986

Annual Percentage Change in U.S. Recurring new Business


U.S. individual life new business trend

-5.7%-3.7%

-9.4%

-15.3%

-8.7%

-3.4%-0.5%

-4.7% -3.5%

12.3%

9.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

U.S. Individual Life Insurance Sales (Face Amount)


U.S. recurring cession rate

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017Amt Reinsured $658 $596 $505 $461 $445 $443 $422 $407 $457 $498Amt Retained $1,212 $1,149 $1,168 $1,211 $1,234 $1,197 $1,168 $1,240 $1,233 $1,225% Reinsured 35% 34% 30% 28% 27% 27% 27% 25% 27% 29%

35% 34%30% 28% 27% 27% 27%

25%27%

29%

0%

5%

10%

15%

20%

25%

30%

35%

40%

$-

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

$ B

illio

ns

U.S. recurring by company – top five companies


56

84

80

84

101

66

89

92

96

105

0 20 40 60 80 100 120

Hannover Life Re

RGA

Munich Re

Swiss Re

SCOR Global Life

2017 2016

SCOR Global Life,

21%

Swiss Re19%

Munich Re19%

RGA, 18%

Hannover Life Re,

13%

All others10%

Recurring Business ($ billions) 2017 Market Share

U.S. recurring by company – next four companies


9

9

17

17

9

10

12

19

0 5 10 15 20

Optimum Re

General Re Life

PartnerRe (Aurigen)

Canada Life

2017 2016

Top 5, 90%

Canada Life 4%

PartnerRe (Aurigen)

2%

General Re, 2%

Optimum Re, 2%

Recurring Business ($ billions) 2017 Market Share

Company2016 2017 Change

from2016 to 2017Assumed

Business Market Share Assumed Business Market Share

SCOR Global Life 101 22% 105 21% 4%

Swiss Re 84 18% 96 19% 13%

Munich Re 80 17% 92 19% 16%

RGA 84 18% 89 18% 6%

Hannover Life Re 56 12% 66 13% 18%

Canada Life Re 17 4% 19 4% 12%

PartnerRe (Aurigen) 17 4% 12 2% -33%

General Re Life 9 2% 10 2% 15%

Optimum Re 9 2% 9 2% 8%

Total 457 100% 498 100% 9%

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


Top five companies now represent 90% of market share

U.S. portfolio business


U.S. portfolio business ($ billions)

$257

$777

$94

$1,042

$344

$628

$238

$130

$729

$169

-

200

400

600

800

1,000

1,200

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

U.S

. $ (b

illio

ns)

U.S. retrocession ($ billions)

15 7 8 7 9

203

5 8 7 -

50

100

150

200

250

2009 2010 2011 2012 2013 2014 2015 2016 20172017 Life Reinsurance Survey 13© 2018 Munich American Reassurance Company. All Rights Reserved.

Canada individual life new business


A brief history …Canada individual life recurring new business ($CA)


# of Reinsurers 14 14 7 7

Recurring NB $9B $17B $110B $168B

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 ($44B)

Munich Re ($42B)

Swiss Re ($28B)

2017200519951986

Canada Recurring Individual Life Volume ($CA Billions)


Canada recurring cession rate

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017Amt Reinsured $150 $152 $153 $153 $149 $143 $142 $153 $160 $168Amt Retained $46 $52 $66 $67 $84 $90 $87 $98 $116 $94% Reinsured 77% 75% 70% 70% 64% 61% 62% 61% 58% 64%

77% 75%70% 70% 64% 61% 62% 61% 58%

64%

$0

$50

$100

$150

$200

$250

$300

$CA

Bill

ions

Canada recurring by company


0

9

15

21

29

41

44

2

10

19

23

28

42

44

Hannover Life Re

Optimum Re

PartnerRe (Aurigen)

SCOR Global Life

Swiss Re

Munich Re

RGA Re

2017 2016

RGA Re26%

Munich Re25%

Swiss Re 17%

SCOR14%

PartnerRe (Aurigen)

11%

Hannover Life Re

1%

Optimum Re6%

Recurring Business ($CA Billions) 2017 Market Share

Canada portfolio and retrocession

18

Berkshire Hathaway

$5.5

Pacific Life$2.9

AXA Equitable

$0.2

Retrocession ($CA Billions)

2017 Life Reinsurance Survey © 2018 Munich American Reassurance Company. All Rights Reserved.

Group business


Group business – recurring business

20

476546

646691

728798 777

0

200

400

600

800

1,000

2011 2012 2013 2014 2015 2016 2017

U.S. Inforce Premiums ($ millions USD) Canada Inforce Premiums ($ millions CA)

107102 103 105

101 104 104

0

50

100

2011 2012 2013 2014 2015 2016 2017


U.S. group life in force premiums

21

15

18

25

39

507

156

346

1,239

2,393

15

21

27

37

139

161

326

1,508

2,006

Other*

SCOR Global Life

General Re Life

Group Reinsurance Plus

Hannover Life Re

RGA Re

Swiss Re

Munich Re

Canada Life

2017 2016

Canada Life 47%

Munich Re

35%

Swiss Re 8%

RGA Re4%

Hannover Life Re3%

Group Reinsurance Plus1%

General Re Life

1%

Other*1%

Inforce Premiums ($ millions) 2017 Market Share


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

Canada group life in force premiums ($CA millions)

22

0

2

6

22

25

836

0

1

6

21

26

886

Berkshire HathawayGroup

SCOR Global Life

Optimum Re

RGA Re

Swiss Re

Munich Re

2017 2016


Looking ahead

Image used under license from iStock.com

Many factors will influence future life reinsurance volumes

Direct life sales, the economy and regulation, in addition to the reinsurance ceding practices

Direct writers’ appetite for financial reinsurance and reinsurance of in force blocks is not expected to wane in 2018

In the U.S., Principle-Based Reserving still presents some uncertainty in terms of how this reserve regulation will impact life reinsurance

Life insurers continue to look for ways to expand insurability to those that are uninsured or underinsured through the use of streamlined or accelerated underwriting programs and technology

Reinsurers with expertise in these areas are well-positioned to capitalize on the new life sales generated by these programs


2017 life reinsurance survey presentation...2017 life reinsurance survey results nancy m. kenneally,...

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