EXOR ownership will free up PartnerRe

The relationship between reinsurance buyers and their reinsurers will not be affected as insurers continue to retain more.

Speaking to Monte Carlo Today, Charles Goldie, CEO, PartnerRe Global, said that he does not believe relationships will be tainted as a result of reduced business being ceded.

“I don’t think it affects the insurer/reinsurer relationship. You could consider the relationship like that of having children,” he said.

“You might want your children to stay with you forever, but the reality is they grow up and they move out. It’s a little like that in this market. I would love companies to remain in their infancy, but when they’re successful, it’s time to move on if they no longer need you.

“One thing we are seeing is an element of buyers building relationships with the companies that they know are still going to be there.”

Goldie also said that while the January 1 renewals would still be favourable towards buyers, the market is reaching more of an equilibrium between supply and demand.

“The supply of reinsurance has been too high for years, but we are reaching a bit more of a balance,” he said.

Speaking of the EXOR acquisition, Goldie said that there had been a number of conversations about how the business will work.

“The AXIS transaction would have been a mixture of insurance and reinsurance, but it’s not our aspiration to be the next direct insurance company—we want to be the next great reinsurer,” he said.

“There are a lot of different strategies and they can all work with the right people and the right strategy, and we’re very comfortable with our strategy.”

Goldie said the biggest change for the business will be operating as a private reinsurer.

“When you’re a public company, you have to worry about whether your top line is growing or shrinking, and comparisons with your peers. But being privately owned means that we are doing this for ourselves, for our clients, for our owners,” he explained.